Los Angeles – February 28, 2019 – Life companies intend to be very active in 2019 and there is still postive relative value in CML’s as compared to alternative investments. Significant spread compression has occurred in “BB” corporate bond spreads, which have tightened 41 bps this month (-15.89%) while “A” rated CMBS bond spreads declined 43 bps (-20%). “A” and “BBB” corporate bonds also saw a decrease in spreads, but not as significant for this month representing a decline of 4 and 5 bps, respectively. There is downward pressure on CML spreads due to the perceived lack of supply for good quality lending opportunities and postive relative value as compared to other asset classes.
Hartford, CT, Feb. 12, 2019 – Nassau Re today announced that it is launching new investment strategies in its asset management segment, expanding into additional specialty finance asset classes as it grows third-party assets under management. With the creation of Nassau Private Credit LLC (NPC), Nassau Re will invest directly in collateralized loan obligation (CLO) equity and related investments for third-party institutional investors. In addition, under its Nassau CorAmerica brand, Nassau Re will expand its existing real estate commercial whole loan capabilities to include floating rate debt investments. Nassau Re is also expanding its alternative investments practice to grow its private equity investing and co-investment platforms.
Los Angeles – January 31, 2019 – The Mortgage Bankers Association (MBA) just released the results of their 2019 Commercial Real Estate Finance (CREF) Outlook Survey, which presents information on what leaders of top commercial and multifamily origination firms expect to see in the year ahead. More than half (55 percent) of the top commercial/multifamily firms expect origination to increase in 2019, with one in eight (13 percent) expecting an overall increase of 5 percent or more across the entire market. Lenders remain eager to make loans: 100 percent of originators reported that in 2018 lenders had a “strong” or “very strong” appetite to make new loans and 100 percent expect lenders’ 2019 appetite to be “strong” or “very strong”.
Los Angeles – December 31, 2018 – Real estate fundamentals are generally healthy with vacancy rates across the four major property types below their historical average over the past 10 years, combined with above average rent growth. Multifamily and industrial property types have seen the most investment activity with sales in the marketplace over double their historical average. Secular changes have benefited the industrial sector with demand intensified from the growth of e-commerce. Given currently low vacancy rates and restrained new construction, CBRE projects an increase in net asking rents. Top of mind for many industrial stakeholders in the U.S. is the contentious international trade environment.
Los Angeles – November 30, 2018 – Corporate bond spreads continued to widen with “A” rated coporate bonds increasing by 13 basis points in the month of November on top of an 11 basis point increase in the month of October. “AA-” rated CMBS bond spreads increased 10-12 basis points over the past month. Spreads for commercial mortgage loans (CML) tend to move more slowly and in a tighter range as compared to corporate bonds. Although not reflected at November month-end, CorAmerica’s estimate of CML spreads have been increased by 10 basis points commensurate with the current relative value to alternative investments. The change in CML spreads has been reflected in the CorAmerica weekly pricing matrix as of December 7th.