CMBS issuance for the first half of 2001 exceeded last year's by almost $8 billion, according to Thomson Financial data.

The sector's volume as of June 29 reached $26.12 billion, up from $18.13 over the same period last year.

Street research has suggested that the FAS 140 issue has a lot to do with the surge in 2001 volume. Issuers rushed to market to make sure that their transactions were grandfathered under FAS 140.

However, the upsurge is not expected to last.

According to a research report from Salomon Smith Barney, "Fixed-rate conduit issuance will slow in the second half of the year because of recently high Treasury rates." However, Salomon expects fusion, single-issuer, floating-rate and international issuance to continue at a "strong pace."

Overall, the bank said that it now seems like this year's issuance "will reach $65 billion and possibly exceed $70 billion."

Banc of America Securities gave CMBS good reviews saying that CMBS performed well during the first half of the year relative to Treasuries, agencies, and interest-rate swaps. The sector, however, lagged corporates.

The report went on to say that the technical and fundamental positives in CMBS "will boost the performance of CMBS relative to other domestic fixed-income securities."

Morgan leads for second half

Morgan Stanley claimed the top spot in the first half of 2001 for CMBS underwriters, according to Thomson Financial.

Morgan had $4.32 billion in year-to-date proceeds, with a 16.7% market share, outpacing rivals Goldman Sachs & Co. and Credit Suisse First Boston.

Goldman was not far behind Morgan, coming in with $4.16 billion in proceeds, gaining a 16.1% market share.

However, CSFB is not as close, with $3.66 billion in proceeds and a 14.1% market share.

JPMorgan is in fourth place with $3.04 billion in proceeds while Deutsche Bank is a distant fifth with $2.17 billion, each getting a 11.7% and 8.4% in market share, respectively.

Morgan's largest contribution for the first half is leading the $1.45 billion

TIAA CMBS 1 Trust 2001-C1. It was also co-lead with Morgan Stanley for the $1.44 billion TrizecHahn 2001-TZH deal and a co-lead with Bear Stearns for the $1.03 billion BSMSC 2001-Top2 transaction.

Though Morgan Stanley holds the throne for year-to-date, Goldman was on top of the quarter with $2.75 billion in proceeds and an 18.1% market share, reversing last quarter's results, when Morgan led the pack with $2.25 billion in proceeds and 20.9% market share.

Three deals put Goldman ahead of Morgan Stanley: $455 million Strategic Hotel Capital, its $720 million share in TrizecHahn 2001-TZH and $1.2 billion GS Mortgage Securities Corp., 2001-Rock.

CSFB came in second place with $2.31 billion in proceeds and a 15.3% market share. Morgan Stanley, however, was only third place with $2.07 billion in proceeds and only 13.7% market share.

JPMorgan and Merrill Lynch & Co. Inc. came in as No. 4 and No. 5, with a 10.6% and 9.5% market share, respectively.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.