CMBS Rates and Market Commentary from Liberty SBF for Feb. 13, 2014


As Federal Reserve Chairman Janet Yellen spoke on Capitol Hill, the market reacted. The 10-year Treasury yield rose for the first time in days as she backed the Fed’s commitment to tapering. Bloomberg reported that the 10-year hit 2.72 percent by about midday, up five basis points.

Market Watch wrote that Yellen’s comments were consistent with the Fed’s policy statement and the “target funds rate is likely to stay near zero until well past when the unemployment rate hits 6.5 percent.”

The day before Yellen’s testimony, treasuries traded in a tight range as investors paused to see what she would say about the Fed’s plans.

Market Watch also reported that the bond auction saw “strong demand” as the Feds sold $30 billion in 3-year notes.

If uncertainty is the bane of the markets then they should take some comfort in the fact that House Republicans sent a clean bill to the floor to raise the government’s debt ceiling and it passed.

After shouldering the blame for the government shutdown in October, Bloomberg reported that they are ready to move on.

Chicago is seeing a surge in CMBS activity according to a story in Chicago Business Daily. Research firm Trepp reported that “lenders that package real estate debt into commercial mortgage-backed securities (CMBS) originated and sold off $2.48 billion in loans on Chicago-area properties last year, more than double the $1.20 billion in 2012.”

Reasons given are rising occupancy rates, rents and property values that make bond investors bullish on CMBS. “Nationally, CMBS lending rose 85 percent last year, to $82.23 billion,” the website reported.

Commercial Mortgage-Backed Security Loans (CMBS) – Weekly Rate Sheet 2/13/2014
Non-Recourse loans for Limited Service Hotels, Office, Industrial, Retail, Multifamily. (As low as $3 Million)

Current Rates
3.63% I 5 YEAR FIXED
5.30% I 10 YEAR FIXED

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