Happy Halloween!
In response to reader’s suggestions, we are re-ordering—slightly—the order of presentation as well as adding commercial mortgage-backed securities trading spreads.
Commercial Mortgage Alert mortgage spreads based upon a weekly survey of 15 active portfolio lenders conducted by Trepp, the analytics firm.
| 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) | ||||
| 10/2 | 10/9 | 10/16 | 10/23 | |
| Office | 391 | 407 | 385 | 381 |
| Retail | 405 | 430 | 403 | 398 |
| Multifamily | 361 | 375 | 339 | 335 |
| Industrial | 373 | 395 | 379 | 377 |
| 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. | |||||
| Spread in Basis Points over Interest Rate Swaps | ||
| Current | 3 Months Ago | |
| AAA | 465 | 646 |
| AA | 3908 | 3511 |
| A | 3554 | 4412 |
| BBB | 5186 | 6283 |
| BBB- | 6191 | 7378 |
| Source: Trepp | ||
Sign 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:
Updating last week’s story: Nine Bank Failures (This Week) Brings Total to 115 for the Year
Perspective: 115 bank failures is the most in one year (and we still have 8 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 30, 2009):
DJIA(1): +10.67%
S & P 500(2): +14.72%
NASDAQ(3): +29.68%
Russell 2000(4): +12.68%
MSCI U.S. REIT(5): +6.81%
(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 30, 2009)
3-month: 0.04%
6-month: 0.16%
2-Year: 0.89%
5-Year: 2.31%
10-Year: 3.38%
