JP Morgan and Barclays are preparing $1.08 billion of commercial mortgage bonds, according to a ratings agency reports.
JPMBB Commercial Mortgage Securities Trust 2013-C17, is a conduit transaction collateralized by 64 commercial mortgage loans secured by 72 properties. The loans have principal balances ranging from $2.1 million to $120.0 million for the largest loan in the pool, Jordan Creek Town Center (11.1%).
Kroll Bond Ratings Agency calculated the overall pool loan-to-value (LTV) ratio of the pool of loans at 101.8%, which is the highest among the 19 CMBS conduits the agency has rated over the six months ending November 2013. In addition, the pool’s exposure to high leveraged loans with LTVs, as calculated by Krooll, in excess of 100% (51.7%) is higher than the average of the last 19 CMBS conduits it rated (43.8%).
Fitch Ratings puts the pool’s LTV even higher 106.7%, which is also higher than other recent Fitch-rated, fixed-rate multiborrower deal. The averaged LTV of deals it rated was 97.2% 2012 and 102.1% in the third quarter of 2013.
JP Morgan Securities, Barclays Capital and RBS Securities underwrote the loans in the pool.
The deal joins a $1.3 billion transaction launched this week by Wells Fargo and Royal Bank of Scotland and another for $1.1 billion from Deutsche Bank and Cantor Fitzgerald.