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| Capital Markets Briefing |
| August 12, 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 (22KB)
Capital Markets Briefing
- While many life companies will enter the second half of 2009 with dwindling allocations, a number of firms have come back to the market with a vengeance. Deterred by unfavourable spreads on corporate bond benchmarks—which dictate commercial mortgage spreads and thereby hindered the ability of these firms to produce new mortgage loans in volume—many life companies were content to sit on the sidelines and opted instead to undergo extensive loan portfolio reviews. With the completion of the portfolio reviews, and a subsequent decrease in benchmark spreads at the end of June, these institutions are now poised for a dramatic increase in new loan production for the second half of 2009—barring any unforeseen setbacks tied to the macro-economy.
- The German banks, while still in business, have bid Auf Widersehen to seven-figure deals; $50-$75M is the new sweet spot. These institutions will also seek participation opportunities in the nine-figure range. With that said, underwriting has held steady and in accordance with typical German bank criteria, only top sponsors with trophy assets in tier-1 global gateway markets need apply.
- Word on the street is that federal regulators have reviewed the books of several credit unions and local/regional banks (nationally, not isolated to Boston) and determined that many of these institutions have met or exceeded their lending capacity for commercial real estate loans. In one particular case, a California-based credit union had reached a point at which their outstanding loans as a percentage of net worth were at federal limits, prompting regulators to declare that they can no longer originate CRE loans, only SBA.
Debt/Capital Markets Articles of Note
Fed extends time but not amount of debt buy
Reuters/Yahoo! Finance — August 12, 2009
The U.S. Federal Reserve said on Wednesday the economy was showing signs of leveling out after 20 months of recession and it will extend the duration but not the size of a program to buy long-term government securities to minimize any disruptions from completing it.
Economists Call for Bernanke to Stay, Say Recession is Over
Wall Street Journal — August 11, 2009
Economists are nearly unanimous that Ben Bernanke should be reappointed to another term as Federal Reserve chairman, and they said there is a 71% chance that President Barack Obama will ask him to stay on, according to a survey.
Bond Expert: Tuesday Wrap
Seeking Alpha — August 11, 2009
Pricers of Treasury coupon securities have surged today as the trifecta of auctions began with a successful auction of three year notes.
Fed Focusing on Real-Estate Recession as FOMC Meets
Bloomberg — August 10, 2009
The collapse in commercial real estate is preventing Federal Reserve Chairman Ben S. Bernanke from declaring the economy and financial markets are healed.
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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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