I recently rejoined my bridge lending firm just this week. Upon returning, I found out several of our loan buyers have dramatically changed their credit box and many of our loans no longer fit. I wonder if capital markets are still frozen across the industry or if this is just a "me problem"? When will they free up? Thoughts?
I can see that Non-Agency MRIETS are still screwed and the Credit Spread is super wide. Was the 2008 recession this bad? The only loan buyers I have been running into today are bottom feeders. What do you guys see?
Thanks
- 一年级分析师的哭声。
Comments (26）
I heard through a friend that a couple of debt funds are giving cash right now, but they're not making serious deals. They're quoting at 800 over LIBOR and 8% rates for standard loans. They're looking for someone dumb enough to take it. Just throwing garbage at the wall and hoping it sticks.
We still have a deal pipeline.Lot of deals we can still hit. Just no take outs for our loans anymore.
Trying to avoid slinging garbage. The VP is "ethical" about that.
I can give specific insight to the broader loan market, and then real estate if you really need to I can do a deal scan on loan connector and check. but incremental term loans are getting done where originally the B/B2 company was L+400 ish, and was getting done at L+1,200 to L+1,300, 97.0 ish. this was the norm maybe 1 month ago. high yield bond market has improved since, so ppl are doing those more now
I don't think that would be super helpful here.
Simple put we still have a pipeline of deals we would like to get done. However, our loan buyers are no longer get leverage to hit the returns they need. In other words, we need some capital influx for these loans.
I feel I am looking for the holy grail right now lol
L+800，LTC为60-65％，我们目前愿意参加。
We have been able to get some stuff done higher than that...
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Learn moreWho the fuck is paying that?
We had a couple deals where they were hard on escrow pre corona and had to get the deal closed. The rate was egregious.
A lot of experienced sponsor's who don't want to put down a PG. Most birdge lenders, I know MD's at the top, and my companny jsut started its own, lend in 8%-12%...not quite the hard money space but the quick close to 75% LTV/LTC range. For some acquisitions, it is the bidge to LP or co-gp capital. Institutional developers were at ~5% for bank money for ground up with Mack Credit at 6-8% in the 4th place bidding spot. 8-9% for non floating rate is not terrible.
We are open for business but prioritizing existing clients particularly our top sponsors with whom we have deposits and cross sell opportunities.
We're about L+450 right with a full year's interest reserve escrowed at closing at 75% leverage
What level of proceeds are you willing to do?
full recourse most likely....
你们为什么收费这么少？您的贷款尺寸是多少？
I have only heard something like that from PCCP. But this was an io on a 40mm office building.
Charging 1 pt in and 1 pt exit fee. Depending on the deal, there may be an artificialLIBOR需要提高整体优惠券所需的地板。
这里有很多人提到“贷款买家”，所以我猜你们只是刮去了费用/保留io条款，而不是真正“资产负债表”贷款吗？
It depends on the deal and ltv for us. We have gotten deals at 14% intrest and deals at only 10% LTV.
Usually loans that are balance, higher than 10 million have to stay on the balance sheet. It's next to impossible to find someone who wants to take a b piece on that.
Understood, so you are syndicating part of it (sell the senior/junior and retain the residual), but not the entire stack. Makes sense and not uncommon. Especially in these times, id imagine lenders would value structural leverage over financial leverage.
Frozen as fuck. Refi market is likely dead. CMBS is starting to pick up in a little bit.. I can't see bridge opening for a while (why would it?). Bridge loans are mostly focused on a biz plan (leasing, Capex plan/reno.. what biz plan is being accomplished today?). Most bridge players are conserving cash and focusing their book/asset management. Besides that spreads have gapped out... so borrowers must accept wide pricing (with lower leverage) and likely massive upfront reserves. For what its worth, its my understanding that someBBCMBS商店甚至FNMA都需要6个月或整整一年的预订储备。
In total, open lenders may just be the local/community banks for time being.
这是什么行业？还是资产课？
因为多户会市场几乎完全是企业开放的。甚至CMB都表现出生命的迹象。代理机构债务的推向低于3％的门槛，大多数贷方在3.50％的地区定价。Lifecos可能75bps更高。只要你不要求社区禁令ks to take on more than ~75-100mm of debt they're open for business (don't want larger loans on their balance sheet). Or that's what we're being quoted
我听说代理机构对大量储备开放。这也许是陈旧的...我不接近这个MKT ... CMBS正在显示迹象（并且应该很快就会开放，多项交易将对MKT进行）...但是这些将在中间（即使对于CMB）更直线。看到夫妇BBcmbs deals close in mid/late April... multis with full 6 months or one year of DS reserves (granted they upsized a bit to cover some of the reserve, 72% LTV, ~4.65%)
On bridge, I'm talking debt fund/etc... not local/community banks or shit hard money. Obviously retail/hospitality are ways away... but even balance/sheet bridge for multi are much more opportunistic/selective (emphasis major markets) and at L+400-800+ vs. 300s or below last winter. Guys are looking to get paid to execute today.
I'm in the space and the guys I see refi a loan out or maybe bid against us.... frankly never heard of them. You're not seeing the usual suspects.
This is what I'm seeing in all mreits, debt fund, etc... the bridge players ... even some major commercial banks. The community banks are really always open... but kind of a different animal
Yes, agency debt is available.
CMBS bond issuances are excluding hotel and retail properties. CMBS buyers also want to ensure that they are not buying loans that are in default, so the originators are being forced to hold the loans on their balance sheets for 1-2 months to prove that payments are being made in accordance with the loan documents. CMBS may be showing some signs of life, but it'll stay in intensive care for a while longer it seems.
这是一个笼统的声明。我们正在返回并在桥梁贷款上运行。如果您能找到稳固的抵押品，就有一些很好的机会，可以找到他们的前融资和其他一次性故事。
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