Headlines
“ Bair says major banks should have even higher capital requirements ”
Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., said major financial institutions should be subject to higher capital requirements than proposed. Bair wants the big banks to prove that winding them down would not be a problem if they become insolvent. “I believe we should impose even higher capital charges on systemic entities until they have developed a resolution plan which has been approved as credible by their regulators,” Bair said.
Pretty strong, but hard to take issue with; your opinion?
Monday’s Numbers
The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders remained literally “frozen in place” over the past few weeks as spreads widened 15+/- basis points, offset by a 15 basis point decline in Treasury yields. All-in cost remains in the 5.00 to 5.25 percent range.
Asking Spreads over U.S. Treasury Bonds in Basis Points (10-year Commercial and Multifamily Mortgage Loans with 50% to 59% Loan-to-Value Ratios) | |||
12/31/09 | 12/31/10 | 5/6/11 | |
Office | 342 | 214 | 185 |
Retail | 326 | 207 | 182 |
Multifamily | 318 | 188 | 166 |
Industrial | 333 | 201 | 181 |
Average Asking Spread | 330 | 203 | 179 |
10-Year Treasury | 3.83% | 3.29% | 3.15% |
The Cushman & Wakefield Sonnenblick-Goldman survey for the period ended May 12 showed spreads narrowing 10 to 15 basis points and financing remains available at attractive and affordable rates.
Property Type | Mid-Point of Fixed Rate Commercial Mortgage Spreads For 5 Year Commercial Real Estate Mortgages | ||||
12/16/10 | 3/2/11 | 3/31/11 | 4/28/11 | 5/12/11 | |
Multifamily - Non-Agency | +270 | +245 | +245 | +230 | +225 |
Multifamily – Agency | +280 | +250 | +250 | +205 | +200 |
Regional Mall | +280 | +260 | +260 | +260 | +255 |
Grocery Anchored | +280 | +260 | +260 | +245 | +245 |
Strip and Power Centers |
|
|
|
| +265 |
Multi-Tenant Industrial | +270 | +265 | +265 | +245 | +245 |
CBD Office | +280 | +260 | +260 | +250 | +250 |
Suburban Office | +300 | +270 | +270 | +260 | +260 |
Full-Service Hotel | +320 | +300 | +300 | +280 | +275 |
Limited-Service Hotel | +400 | +325 | +325 | +320 | +320 |
5-Year Treasury | 2.60% | 2.17% | 2.23% | 2.05% | 1.88% |
Source: Cushman & Wakefield Sonnenblick Goldman. | |||||
Property Type | Mid-Point of Fixed Rate Commercial Mortgage Spreads For 10 Year Commercial Real Estate Mortgages | ||||
12/1610 | 3/2/11 | 3/31/11 | 4/12/11 | 5/12/11 | |
Multifamily - Non-Agency | +190 | +180 | +180 | +180 | +180 |
Multifamily – Agency | +200 | +185 | +185 | +185 | +175 |
Regional Mall | +175 | +180 | +180 | +180 | +180 |
Grocery Anchor | +190 | +185 | +185 | +181 | +175 |
Strip and Power Centers |
|
|
|
| +190 |
Multi-Tenant Industrial | +190 | +190 | +190 | +190 | +185 |
CBD Office | +180 | +180 | +180 | +180 | +180 |
Suburban Office | +190 | +190 | +190 | +190 | +190 |
Full-Service Hotel | +290 | +230 | +230 | +230 | +220 |
Limited-Service Hotel | +330 | +260 | +260 | +240 | +240 |
10-Year Treasury | 3.47% | 3.47% | 3.45% | 3.51% | 3.22% |
Source: Cushman & Wakefield Sonnenblick Goldman. | |||||
Property Type | Mid-Point of Floating-Rate Commercial Mortgage Spreads For 3 - 5 Commercial Real Estate Year Mortgages | ||||
12/16/10 | 3/31/11 | 4/12/11 | 4/28/11 | 5/12/11 | |
Multifamily – Non-Agency | +250-300 | +225-300 | +225-325 | +225-315 | +205-300 |
Multifamily- Agency | +300 | +250-300 | +250-310 | +250-310 | +225-310 |
Regional Mall | +275-300 | +225-300 | +225-300 | +225-300 | +200-275 |
Grocery Anchored | +275-300 | +225-300 | +225-300 | +225-300 | +210-285 |
Strip and Power Centers |
|
|
|
| +230-300 |
Multi-Tenant Industrial | +250-350 | +250-350 | +250-350 | +250-350 | +235-325 |
CBD Office | +225-300 | +225-300 | +225-300 | +225-300 | +225-300 |
Suburban Office | +250-350 | +275-350 | +275-350 | +250-350 | +250-350 |
Full-Service Hotel | +300-450 | +350-450 | +350-450 | +350-450 | +350-450 |
Limited-Service Hotel | +450-600 | +400-500 | +400-500 | +400-500 | +400-500 |
1-Month LIBOR | 0.26% | 0.24% | 0.22% | 0.21% | 0.20% |
3-Month LIBOR | 0.30% | 0.30% | 0.28% | 0.27% | 0.26% |
* A dash (-) indicates a range. | |||||
Source: Cushman & Wakefield Sonnenblick Goldman. | |||||
Year-to-Date Public Equity Capital Markets
DJIA (1): +8.79%
S & P 500 (2):+6.37%
NASDAQ (3): +6.62%
Russell 2000 (4):+6.64%
MSCI U.S. REIT (5):+8.69%
_____
(1) Dow Jones Industrial Average. (2) Standard & Poor’s 500 Stock Index. (3) NASD Composite Index. (4) Small Capitalization segment of U.S. equity universe. (5) Morgan Stanley REIT Index.
U.S. Treasury Yields | ||
12/31/10 | 5/13/2011 | |
3-Month | 0.12% | 0.02% |
6-Month | 0.18% | 0.07% |
2 Year | 0.59% | 0.53% |
5 Year | 2.01% | 1.83% |
10 Year | 3.29% | 3.17% |
