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| Capital Markets Briefing |
| June 23, 2009 |
Good Afternoon,
Attached is a PDF copy of Colliers Meredith & Grew's interest rate sheet that includes current and historical Treasury, LIBOR and Prime interest rates, which are updated daily with real time data from Strategic Alliance Mortgage.
We provide these updates on a weekly basis to keep our clients and colleagues aware of rate movements. We hope you find this information helpful.
DOWNLOAD INTEREST RATE SHEET (23KB)
Capital Markets Briefing: Life Insurance Company Underwriting
Founded in 1978, Colliers Meredith & Grew's Capital Markets group is now one of the two largest commercial real estate mortgage banking firms in the region. In addition to representing 13 life insurance companies and union pension funds as their New England correspondent, the Capital Markets group maintains a servicing portfolio valued at $1+ billion. Group members are at the cutting edge of technology utilizing a web-based system to monitor and catalogue capital markets conditions and participants. As an owner/member of Strategic Alliance Mortgage L.L.C. (SAM), Colliers Meredith & Grew’s Capital Markets producers have the ability to access real time deal information from individual member companies that are the leading providers of the best financing alternatives in their respective markets. These resources, combined with the group’s in depth market knowledge, overall organizational and capital markets expertise, has informed the following summary of life insurance company underwriting.
| Life Insurance Company Underwriting |
| Loan Amounts |
Most life companies will lend between $2 -30M or
more on a single asset |
| Spreads |
350 - 500 bps over corresponding Treasury; Floor
rates are the norm |
| LTV/LTC
|
50 - 60% for most core product types; ability to get
more aggressive on multi-family |
| Term
|
5 - 25 years (longer term preferred) |
| Amortization
|
25 year schedules most common; Will consider 30
years schedules very selectively |
| DSCR
|
Typically 1.30 - 1.50x minimum |
| Structure
|
I/O typically not available; Mostly non-recourse
lenders; No covenants |
| Comments
|
Deep scrutiny over market vacancy, borrower
profile, tenant roster, management fees,
pro forma rent growth and rollover risk |
Debt/Capital Markets Articles of Note
Treasuries Rise as U.S. Auctions $40 Billion of Two-Year Notes
Bloomberg — June 23, 2009
Treasuries gained for a third day as the government’s sale of $40 billion of two-year securities, the first of three auctions this week of a record $104 billion in notes, drew stronger demand than forecast.
Bond Expert: Tuesday Outlook
Seeking Alpha — June 17, 2009
The market posted solid gains yesterday and the losses overnight represent a partial retracement of the equity market driven gains from yesterday.
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| Please contact the Capital Markets Group at Colliers Meredith & Grew with any financing questions.
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Colliers Meredith & Grew is a Boston-based commercial real estate company with integrated service groups including Brokerage, Capital Markets, Counseling & Valuation, Development & Advisory, Investment Sales, and Property & Asset Management. In addition to representing its core clients in New England, Colliers Meredith & Grew provides national and international real estate services to its multi-market clients as a member of Colliers International and as an owner/member of Strategic Alliance Mortgage LLC (SAM). Colliers International is a worldwide affiliation of independently owned and operated companies in more than 293 offices in 61 countries. |
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