CMBS

By property type, lodging assets led the way for total delinquencies, with 6.3%, while some 3.5% of the lodging pools were current and specially serviced.

Office properties account for 60.8% of the pool, above the 41.2% average for 2020 deals, and above the 36.5% average for 2021.

Office buildings are increasingly going delinquent on their mortgages, and yet bond buyers can’t seem to get enough of the properties.

Commercial mortgage bond sales are heating up again, signaling another strong year ahead after issuance of the securities hit a post-crisis record in 2021.

Potters, who has headed CMBS businesses at SocGen and Merrill Lynch, will focus on digital and automated commercial real estate loan securitizations.

Key retail vacancies, a drop in office occupancies, plus a combination of lower oil prices, a housing market oversupply — worsened by the coronavirus pandemic — caused loan-level performance issues.

On any semi-annual payment date, the notes will pay on a pro rata basis if a loss trigger event is in effect. If a loss trigger event exists, the notes repay sequentially.

Some 75% of the loans, or a count of 38, are partial term interest-only (IO) loans, and just six, or 22.9% of the pool are full-term IO loans. Just one loan, has an amortizing balloon.

Private label commercial real estate (CRE) securitizations may end up at $149 billion - more than double 2020’s volume of $62.2 billion.

The sponsors got the portfolio through multiple acquisitions from May through October.