Wall Street Rebounds

As Wall Street loan originators gear up to structure for the risk retention requirements as mandated by Dodd/Frank, the majority of Investment and Retail Banks are once again actively soliciting product for securitization prior to the December regulations taking hold. Subsequent to the last quarter “speed bump” experienced in the secondary market, significant demand exists for transactions underwritten to an 8.0% debt yield (and below for high quality assets) at spreads in the low to mid-200s. Flagged hospitality is underwritten down to a high-9% debt yield. Interest only may be offered for two to three years; longer on lower leveraged transactions. The appetite is strong for stabilized cash flows for loans from $3,000,000 to $70,000,000 in primary and secondary markets nationwide.