JPM Sells $500M CMBS Without TALF

Diffusion

JPMorgan Chase has sold $500 million in commercial mortgage-backed securities without buyers obtaining low-cost financing under the Federal Reserve’s Term Asset-Backed Securities Loan Facility. It follows by a week Bank of America’s TALF-less $460 million issue, and is the third such offering in less than a month after an absence of any deals for more than a year. The JPMorgan sale is backed by $625 million the bank loaned to Inland Western, which was able to pay off nearly all its 2009 maturities with the cash.

Check the link below to read the full story
http://www.bloomberg.com/apps/ne ... mp;sid=agjnICTdkqwQ

==========
1B (JPM 500M + BAC 460M) is not a big number, but it's certainly a positive sign of rising risk appetite.

coexist

市场如何反应？

Diffusion

市场如何反应？
coexist 发表于 2009-12-15 01:37

JPM今天涨了2%，不过未必是因为这条消息。关于CMBS，我觉得讨论它的前景还有点为时过早...

X!nG

You do know JPMC is the major intermediary of Fed, don' you?

With regards to CMBS, not many people paid attention to Fed's $1.3 billion injection yesterday.

New York Fed announces $1.3 billion in Legacy CMBS TALF loans requested at December 14 facility
Source: http://www.ny.frb.org/markets/CMBS_recent_operations.html

Diffusion

You do know JPMC is the major intermediary of Fed, don' you?

With regards to CMBS, not many people paid attention to Fed's $1.3 billion injection yesterday.

New York Fed announces $1.3 billion  ...
X!nG 发表于 2009-12-15 04:35

This is good information. I didn't notice this...

AGA7d

Buying CMBS is still too risky.

A closer look at Moody’s Delinquency Tracker for Commercial Mortgage-Backed Securities provides little reason for optimism.

The delinquency rate of loans in US CMBS conduit deals reached 4.47% at the end of November, a 46-basis point increase over the month before, and the largest monthly increase yet of the economic downturn.

The report notes that the balance of delinquent CMBS loans stood at $6.7 billion in December of 2008 and has increased by more than $23 billion in the past twelve months.

        The delinquency rate has now increased 29-fold over its low point of 0.22% reached in July 2007 - Moody’s Managing Director Nick Levidy

The delinquency rate on loans backed by hotel properties increased by 160 basis points during November, to end the month at 7.80%. Multifamily properties saw the second largest increase in its delinquency rate, increasing more than 90 points to 7.40%.

DQT Dec

Meanwhile, the delinquency rates on loans backed by industrial properties increased 28 basis points to 3.11%, while office property delinquency rate rose 25 points to 2.95%.

“As we pointed out in our recent Commercial Real Estate and CMBS outlook, the property sectors with the shortest lease terms have suffered the most so far in this downturn,” says Moody’s Levidy. "However, those sectors are also expected to be the first to recover.”

Four states—Nevada, Rhode Island, Arizona and Michigan–have delinquency rates over 10%, while all the other states have rates less than 8%, according to Moody’s. The four states, however, account for less than 7% of all outstanding loans. The two states with the largest shares of outstanding loans have rates lower than the country as a whole, California with a rate of 3.88% and New York at 2.47%.

coexist

Buying CMBS is still too risky.

A closer look at Moody’s Delinquency Tracker for Commercial Mortgage-Backed Securities provides little reason for optimism.

The delinquency rate of loans in US C ...
AGA7d 发表于 2009-12-15 15:29

Buying CMBS tomorrow?