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Here’s a Pearl – Financing Update 5-18-2011

Bloomberg reported yesterday on a previously reported CMBS offering. That is not news, but the news within the news is that CMBS spreads* are declining along with corporate bond spreads. CMBS is seen as a good alternative offering acceptable yields. Thus CMBS is another alternative to investing in corporate bonds, especially junk bonds. What Bloomberg More

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Commercial Real Estate Financing Update-May 2011

BANK LOANS Banks are not in the loan term fixed rate business, but their rates are attractive.  Banks are offering short term loans (3yr-5yr) at attractive rates keyed to short term swaps or Treasuries yields.  However, the favorable rate is offset by the high risk that at loan maturity in 2014 – 2016  the property More

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Good News

If you are involved in commercial real estate (CRE) and looking for a reason to get out of bed in the morning, there is good news.  To those who view commercial real estate loans as the mother’s milk of investing, I say put on your bib because mother is about to feed you.  

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Perceptible Progress

The CRE financing market continues to wiggle its way out of the cocoon in which it has been bound.  Maybe a more apt metaphor is that CRE financing market is slowly pulling its legs out of the mud into which it sunk and has been trapped.  If that conjures unpleasant images of dirty feet, how More

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Bernanke testimony reveals solution to TBTF – ask pigs to fly

Bernanke opted for a solution for TBTF which will work when pigs can fly.  He relies on bureaucrats to pull the regulatory trigger to close TBTF banks, which itself may cause all other TBTF banks to simultaneously collapse based on the dynamic of interconnectedness.

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CMBS back in play

After taking a bath in 2008 and being sucked down the drain, CMBS once again is dipping its toe in the water. The number of CMBS bond pool issuances since 2008 can be counted on one hand. However, a proposed 6th mortgage bond pool will be forthcoming from Goldman and Citi, so you’ll have to More

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Welcoming Q3 2010

It’s time to welcome the third quarter of 2010.  What does it portend and what have the first two quarters of 2010 revealed about our economic well being? As of July 1st the following obtains. Since January: – The Dow is down 695.52, or 6.7 % – The S&P is down 87.73, or 7.9% - More

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