CMBS

Even as they begin dropping credit ratings as a supervisory source, regulators signaled Tuesday they are worried about abandoning their use altogether, suggesting that potential alternatives are not much of an improvement.

JPMorgan Chase acquired $3.5 billion of multifamily and commercial real estate loans from Citigroup, saying that the "highly desirable" portfolio mirrors the Chase commercial term-lending group's focus on "excellent borrowers in stable markets."

Cantor Fitzgerald and CIM Group (CIM) formed Cantor Commercial Real Estate (CCRE), a real estate financing business that will originate fixed- and floating-rate mortgages and mezzanine loans backed by diverse real estate assets located mainly in the urban areas of major U.S. markets. The newly formed firm will engage in securitizations of these loans.

Wireless Capital Partners (WCP) is in the market with its first-ever term securitization backed by multiple assets and ownership interests in sites used for wireless communication equipment and other related purposes.

The aggregate value of commercial real estate (CRE) loans priced by DebtX that back CMBS rose to 77.4% as of June 30 from 76.6% as of May 28, according to a release from the firm. Loan values were 76% as of June 30, 2009.

Though the majority of the MBS/ABS group was formed in 2008 and 2009, Jefferies continues to expand in this area.

Knight Capital Group expanded its ABS/MBS capabilities in commercial real estate (CRE) finance with the hiring of Barry Funt and Winston van Buitenen as managing directors.

Regulators are poised next week to start moving away from reliance on the tarnished credit rating agencies in the supervisory process, but finding other options likely will be difficult.

Obama administration officials are pushing the largest banks to voluntarily adopt certain provisions of the Dodd-Frank regulatory reform law early, according to people with knowledge of the matter.

Through its proposals on Regulation AB, the Securities and Exchange Commission (SEC) will be subjecting privately sold ABS to the disclosure requirements applicable to securities offered in registered public offerings.