Mortgage/CMBS origination spread
Hey everyone,
I was wondering if there are any ways to find current average mortgage origination spread for balance sheet loans and CMBS loans (different spreads for different risk categories would be excellent)
Thanks
Going to be slightly tough as it constantly changes (week by week or even day by day at times of high volatiliy). I'm sure there's something out there but it's probably not very accurate because you don't know If the spreads are over the treasury, swap or average life. I'd focus on coupons (which are more frequently quoted in commercial mortgage alert and mortgage observer) and try to extrapolate the spread. I can tell you generally the market for life company loans seems to be 140ish to 200ish for 10 year deals. Probably 20 wider for cmbs loans + the swap spread.
Currently seeing 160-195 for CMBS 10Yrs. But as Maserati stated, changes daily.
We took out five loans in the $150m-$300m range in 2014 and of those, 2 CMBS and 2 balance sheet were each 175 over 30 day or 3 month LIBOR.
Same for us. 60-65%, 5yr, secondary markets, quality product, stabilized and non stabilized
Over the past couple weeks I've seen quotes in the ~195-210 + 10 year swap range for 10 yr CMBS deals
CMBS: For 75% LTV, lower quality/secondary market properties I'm seeing 200-225 over 10 yr swaps
CMBS: For 75% LTV, lower quality/secondary market properties I'm seeing 200-225 over 10 yr swaps
Thanks guys. I was trying to figure out what spread cmbs lenders quote in the current market but I guess it is a little bit difficult to do.
I was wondering if anyone has seen spread started widening a little bit given declining rates in the last couple months!?
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