CMBS

An influx of capital to the sector, the return of CMBS and the hunt for extra yield were among the year’s most influential trends.

The two banks have issued the first post-crisis transaction with significant French real estate exposure.

BAML’s Devonshire Square transaction in London comes amid widening pricing in the securitisation space.

The securitisation of debt linked to a logistics property achieved 75bps for its highest-rated notes, following a trend of constricted prices in the market.

Morgan Stanley has securitised a portion of the circa £345 million whole loan which it provided to Blackstone last May to refinance the Devonshire Square estate in the City of London.

The launch of a UK student housing-backed bond shows that capital markets distribution remains an option, but only in certain cases.

Canadian real estate investor Brookfield has priced a £215 million senior secured bond in the first publicly-traded deal in the European CMBS market in 2017.

Investment manager PIMCO has launched a global fund to invest in mortgage-backed securities in order to generate a source of returns “across full market cycles”.

The report, which Trepp presented to the Federal Reserve Board of Governors recently, states that the agency now expects only 20 percent of these loans to experience losses, compared to the 50 percent prediction that many institutional lenders and rating agencies had voiced.

All nine CMBS classes that Fitch Ratings placed on 'Rating Watch Negative' following wildfires that ravaged the oil town of Fort McMurray in Alberta, Canada have been taken off the agency's watch list.