Still sees value in AAA CMBS at current levels, especially with other asset classes trading so tight, but remains on guard for a possible flurry of bid list activity that would push the sector off these three-year tights in spreads. Alternatively, believes single-A CMBS are the richest they have been in several years, and that PAC IOs and BBB CMBS offer better value. BBB- CMBS are currently 4 bps wider than at the beginning of the year versus BBB- REIT paper which is 60 bps tighter.
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Both pools have exposures to large dealers, so losses could be more pronounced if one dealer goes bankrupt, while both series have revolving periods, when noteholders will not receive any principal.
May 3 -
The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency issued a 30-page guidebook on managing affiliate risks. The report builds on formal guidance issued last year.
May 3 -
In talks with OCC officials, "it became obvious that we would not gain near-term approval given their recent experience with multifamily and CRE positions," FirstSun CEO Neal Arnold says. The companies announced other revisions to their deal, too.
May 3 -
Subordination provides credit enhancement to the notes, as well as deposits in the reserve and redemption accounts.
May 3 -
The capital structure features initial exchangeable notes among the class A, mezzanine and B1 notes. The super senior and senior support tranches will repay noteholders on a pro-rata basis.
May 2 -
The company's branches and loan officers will transition to ML Mortgage but operations staff are not part of the deal.
May 2