Sunday, October 11, 2009

Coming and Going this week in CMBS...

GGP goes back to court on the 15th, almost exactly 1 year after the troubles at the REIT started to gather steam and the Chicago SunTime's David Roeder valued the company at "almost literally worth nothing" (I think "almost literally" is somewhere north of $5 on the equity, but we'll see). Ackman hopefully will see a nice boost to his GGP holdings late in the week, so he'll be ready for the conference next week with Julian Robertson, Greenblatt, and Einhorn.

DDR apparently got financing on their $400mm TALF loan last week via GS - will be interesting to see how the deal sells. Haven't heard anything other than the media reports. They also successfully raised a $300mm 6.5 year unsecured deal a couple of weeks ago at a 9.75% yield. They're rated BB+. Boston Properties, rated BBB/A-, raised $700 mm in unsecured debt with a 10-year maturity for a 6% yield (as of Friday close).

Freddie sold off $2 billion last week (GS, DB), Ginnie has $200 mm on the table (via Jefferies), and Capmark did a small deal from financing used to help privatize military housing at the 3 AMC (Air Mobility Command) West bases.

PPIP is apparently coming online this week. Should help support the AJ rally despite the looming CRE bad news slated to start before the end of the year. Walter Kurtz has a summary of how PPIP works - some of the numbers are wrong (obviously RMBS + CMBS is > $2 trillion, by like $10 or $15 trillion), but the overall gist is there.

1 comment:

Dark Space said...

OH, and tomorrow's a holiday too, btw! Bond Market is closed, and we will be celebrating this guy who accidentally "discovered" America (well, discovered it after numerous other peoples already had done so, and it was inhabited when he arrived), lied to his benefactor about it's riches, demoted native women to working in the fields (Arawak women were on equal standing with men, in large part, before he arrived), drove many of the natural inhabitants into slavery, left his wife for a mistress, misinterpreted the distance of his destination (because he failed to convert from the Italian to Arabic miles - should of used the metric system), can be linked to a number of deaths amongst the natives and his crew, not only brought disease to the Americas, but also likely brought syphilis back to Europe on a return voyage eventually leading to over 5 million deaths. I present to you, Christopher Columbus. Let's celebrate!