The portfolio includes $525.5 million of offered certificates, of which only $478.8 million will be publicly offered in a four-tranche offering of senior Class A notes ($422.2 million) with 30% credit enhancement, plus a pair of subordinate series of bonds: a $29.4 million Class B series and a $27.14 million Class C series.
Commercial mortgage loan originations in 2017 are expected to increase 3% over last year to a record high, as market fundamentals and property prices remain strong, according to the Mortgage Bankers Association.
The new program, called KT Certificates, consist of senior notes that are guaranteed and mezzanine and subordinate notes that put investors on the hook for initial losses on mortgages before they are securitized into K-deals.
The $1 billion FNA 2017-M2, which priced Wednesday morning, is the GSE's second GeMS REMIC of the year. It included two tranches that are backed by 30 loans originated under Fannie Maes green program and individually securitized.
OMPT 2017-1 MKT is a $975 million transaction featuring notes secured by a refinanced mortgage for the owners of One Market Street, a 1.58 million square foot Class A complex located on the citys West side near the San Francisco Ferry Terminal.
Regulation AB governs registration, reporting and disclosure requirements for all things asset-backed. The Securities and Exchange Commission appears to be ready to update it significantly, but, nearly four years after changes were originally proposed, its not clear exactly what the Commission will do.
The proposal would introduce dissemination of trade prices for securities ranging from highly liquid credit card and auto ABS to smaller and more esoteric deals in asset classes such as time shares, to commercial mortgage-backed securities (CMBS) and highly structured CDOs and collateralized loan obligations.
As July came to a close, it was clear to everyone at ASR that the structured finance market was not about to take a vacation.
DFG Taps Goldman Vet, Barclays Bulks Up on CMBS, Ares Adds Jeffrey Kramer and the ASF Retains Mike Williams as Policy Adviser
Could higher yields end up deepening the investor base for asset-backeds?
Treasurer, Head of Asset Management
Firm: NewStar Financial
It's unclear how the new political environment will affect the platform's viability or how investors will view the securities issued on it. The next year could determine the project's success and role reshaping the secondary mortgage market.Current Issue