CMBS

Experts expect only a small uptick in distressed mortgages, either through default or inability to refinance, which will create some opportunity for debt buyers

Two lodging property loans in Alabama and South Carolina were taken out prior to COVID-19, and the loan on the Alabama property had been granted forbearance.

The bonds will be backed by a first-lien mortgage on Willowbrook Mall, a 1.52-million-square-foot shopping center in Houston.

It’s become nearly impossible to find yield amid the ongoing spread compression across credit markets. One of the last harbors for value, securitized debt, still offers upside in some specific areas, though returns are quickly diminishing.

Analysts at HSBC Holdings PLC reported last month that 82% of employees globally say they’d like to work remotely at least one day a week in the future, citing Colliers International data. A separate CBRE survey showed a plurality seeking two to three days a week.

Flatt said the combination of strong markets and asset sales means there’s enough capital on hand for its planned $6.5 billion privatization of Brookfield Property Partners LP, and the repurchase of its own shares, to soak up some of the new equity being issued in the transaction.

The multiborrower CMBS deal includes 71 single-tenant properties, representing more than 40% of the pool.

Deals, trends and research in structured finance and asset-backed securities for the week of April 30-May 6

The 30-acre luxury retail development is among four investment-grade-worthy loans included in the multiborrower deal.

According to Moody’s Investors Service, nearly 73% of the 33-obligor pool for ACRES Commercial Realty 2021-FL1 are apartment buildings that lack current revenue streams due to property rehabilitation efforts or being under transition.