CMBS

J.P. Morgan is marketing $235 million of mortgage bonds backed by a single loan collateralized by a portfolio of 63 Value Place extended-stay hotels, according to rating agency reports.

The first offering of commercial mortgage bonds to hit the market post-Labor Day comes from JP Morgan Chase, which is securitizing a $900 million portion of a $1.2 billion loan on an iconic Manhattan office building at 9 West 57th Street.

A wave of maturing commercial mortgages is set to crest next year, and. Kroll Bond Rating Agency reckons that roughly a quarter of these 1,803 loans may have difficulty refinancing, resulting in what is known as a maturity default.

Fitch has taken a slightly dimmer view of Midland Loan Services’ ability to workout distressed commercial mortgages.

In a report published Thursday, Moody’s Investors Service warned that loans backed by shopping centers are an increasing cause of concern for mortgage bond investors and provided some criteria for evaluating the long-term viability of regional malls.

The Federal Housing Finance Agency is seeking to make it easier for Federal Home Loan Banks to accept certain kinds of collateral for advances.

As the volume of maturing commercial mortgages spikes, so is the number of loans transferred to special servicing when they fail to pay off.

The first commercial mortgage-backed security to comply with "skin in the game" requirements was extremely well received. Market participants credit the way the large banks sponsoring the deal retained the risk – a strategy unavailable to nonbank lenders.

Macy’s decision to shutter another 100 of its department stores could impact some $3.64 billion of securitized commercial mortgages, according to Morningstar Credit Ratings.