Wells Fargo is buying CMBS that it believes to be well priced, Bloomberg News reported today.
The CMBS purchases come after the bank reported a 6.6% increase last quarter to $41.26 billion in its holdings of non-government backed residential and commercial mortgages.
The securities throw off an average of 9.03% yield, the bank said last week.
Tim Sloan, head of the commercial, real estate and specialized financial services operations at Wells Fargo’s wholesale banking unit, said there are good opportunities out there now if one has the right underwriter, deal, and investor knowledge, according to Bloomberg.
Wells Fargo owned an average of $133.8 billion of MBS last quarter, up from last year’s $63 billion.