CMBS

Wells Fargo’s latest commercial mortgage trust deal is a higher-leverage gambit of riskier debt-service coverage and loan-to-value ratios, driven by additional subordinate financing carried by some of the pool’s largest borrowers.

JP Morgan and Deutsche Bank are marketing $893 million of commercial mortgage bonds with unusually heavy exposure to office buildings and hotels, according to Fitch Ratings.

Taurus 2016-2 Deu DAC has a five-class notes structure, including a triple-A provisionally rated €140 million tranche at the top of the capital stack.

Velocity Commercial Capital is returning to the securitization market, having tightened underwriting of small balance commercial loans following the disclosure that one of its borrowers misrepresented the use of proceeds.

The shakeout in the sporting goods industry continued to impact commercial mortgage bonds, as Sports Chalet is closing stores that are tenants in properties backing 11 CMBS loans.

Morgan Stanley and Bank of America Merrill Lynch are using a regional mall in Oklahoma City to dress up another highly leveraged offering of commercial mortgage bonds.

A $388.5 million securitization is being planned for a single commercial loan to the Palisades Center Mall in New York, a metro super-regional mall emerging from two years of renovations and major retail tenant poachings by a rival development.

Credit market turmoil continued to take a toll on commercial property prices in February, when Moody's/RCA Commercial Property Price Indices national all-property composite index declined for a second consecutive month.