Noteworthy News
Signs of the Times? For as many who say that the capital markets crises is easing or ending or whatever, there is daily evidence that things are not quite that rosy as shoe after shoe continues to drop. A number of this week’s shoes included the following:
Seven Bank Failures (This Week) Brings Total to 106 for the Year
Perspective: 106 bank failures is the most in one year (and we still have 9 weeks to go) since the height of the savings and loan crises in the early 1990s.
Perspective: The "Over-Under" on the number of bank which will fail during the current crises is 400!
Monday’s Numbers
Year-to-Date Equity Market Performance (as of October 24, 2009):
DJIA(1): +13.963%
S & P 500(2): +19.52%
NASDAQ(3): +36.62%
Russell 2000(4): +20.16%
MSCI U.S. REIT(5): +10.44%
(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: (as of October 24, 2009)
3-month: 0.05%
6-month: 0.17%
2-Year: 1.00%
5-Year: 2.45%
10-Year: 3.49%
Commercial Mortgage Alert has added loan spreads to its weekly “Market Monitor” data page. The spreads are based upon a weekly survey of 15 active portfolio lenders conducted by Trepp, the analytics firm. Survey participants include: national banks, insurance companies, and finance companies.
| 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) | ||||
| 9/30 | 10/2 | 10/9 | 10/16 | |
| Office | 381 | 391 | 407 | 385 |
| Retail | 396 | 405 | 430 | 403 |
| Multifamily | 334 | 361 | 375 | 339 |
| Industrial | 373 | 383 | 395 | 379 |
| Source: Trepp | ||||
Indicated Spreads for Conventional Fixed and Floating Commercial Mortgages (as of October 15, 2009)
| Property Type | Mid-Point of Commercial Mortgage Rate Spreads for 5-10 Year Fixed-Rate Mortgages | ||||
| 7/29/09 | 8/20/09 | 9/01/09 | 10/1/09 | 10/15/09 | |
| Multifamily: Non-Agency | +350 | +400 | +425 | +350 | +350 |
| Multifamily: Agency | +220 | +220 | +240 | +240 | +240 |
| Regional Malls | +475 | +470 | +458 | +458 | +438 |
| Strip/Power Centers | +450 | +465 | +465 | +465 | +450 |
| Multi-Tenant Industrial | +463 | +475 | +488 | +470 | +465 |
| CBD Office | +420 | +443 | +460 | +460 | +450 |
| Suburban Office | +460 | +478 | +475 | +475 | +475 |
| Full-Service Hotel | +453 | +525 | +563 | +563 | +550 |
| Limited-Service Hotel | +550 | +550 | +575 | +575 | +575 |
| 5-Treasury | 2.70% | 2.65% | 2.47% | 2.41% | 2.41% |
| 10-Year Treasury | 3.69% | 3.46% | 3.45% | 3.43% | 3.49% |
| Source: Cushman & Wakefield Sonnenblick-Goldman, LLC. | |||||
| Property Type | Mid-Point of Floating Rate Commercial Mortgage Rate Spreads for 3-5 Year Fixed-Rate Mortgages | ||||
| 7/29/09 | 8/20/09 | 9/01/09 | 10/01/09 | 10/15/09 | |
| Multifamily: Non-Agency | +413 | +413 | +413 | +413 | +375 |
| Multifamily: Agency | NA | NA | NA | NA | NA |
| Regional Malls | +550 | +500 | +475 | +450 | +413 |
| Strip/Power Centers | +538 | +488 | +488 | +438 | +413 |
| Multi-Tenant Industrial | +488 | +488 | +413 | +388 | +388 |
| CBD Office | +525 | +488 | +375 | +375 | +375 |
| Suburban Office | +600 | +550 | +388 | +400 | +400 |
| Full-Service Hotel | +650 | +650 | +600 | +600 | +538 |
| Limited-Service Hotel | +725 | +725 | +650 | +650 | +600 |
| 1-Month LIBOR | 0.29% | 0.27% | 0.26% | 0.25% | 0.24% |
| 3-Month LIBOR | 0.49% | 0.43% | 0.38% | 0.29% | 0.28% |
| Source: Cushman & Wakefield Sonnenblick-Goldman, LLC. | |||||
