Several new deals that have been in the works signal that the CMBS new-issue market might be picking up steam, according to Scott Buchta, head of investment strategy at Braver Stern Securities in an emailed note.
Indeed, there is news of several deals being prepped to come to market. Deutsche Bank and UBS are reportedly set to announce their $2.2 billion CMBS conduit transaction next week.
The offering, dubbed DBUBS, is backed by loans on office buildings, shopping malls and hotels.
The banks reportedly placed their transaction's B-pieces with BlackRock earlier this month. When asked by ASR to comment, BlackRock would not confirm its involvement on the offering. although it has been a regular buyer of B-pieces.
"I have not seen the underlying structures of these deals, but I believe that a lot of the B-notes have been pre-sold to investors ahead of the marketing of the seniors," Buchta said. "I believe that there are a few large investors who have been the buyers of these subordinate securities and that there has been strong demand."
As earlier reported by StructuredFinanceNews.com, GS Mortgage Securities Corp. II filed an S-3 with the Securities and Exchange Commission to issue a CMBS secured by a pool of fixed-rate, first lien mortgage loans on various types of commercial and multifamily properties.
JPMorgan is also planning to sell a $1.5 billion CMBS deal. This week Bloomberg reported that Cantor Fitzgerald and Wells Fargo are prepping a $1 billion CMBS offering that is scheduled to launch in March.