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.
JPMDB Commercial Mortgage Securities Trust 2016-C2 is backed by 30 loans secured by 70 properties. Offices represent 39.8% of the pool and hotels represent 19.9%. That compares with an average office exposure of 23.5% office and hotel exposure of 17% in deals rated by Fitch in 2015. Hotels have a higher probability of default in Fitch’s multiborrower model because nightly rates fluctuate highly.