With memories still fresh from the 2007 financial meltdown precipitated by unrestrained real estate borrowing, US bank lending officers are showing a reduced tolerance for risk and reporting tightened CRE lending policies - most notably on multifamily lending.
The reaction is in response to numerous factors, including ongoing concerns from federal regulators about an overheated CRE lending environment, a more uncertain outlook for CRE property prices, and the impact from rising vacancy rates in certain property types.Click here to download a pdf of this article, Missile.pdf
At a House Armed Services Committee hearing on Wednesday, a congressionally-mandated advisory panel looking into Pentagon acquisition reform presented an interim report calling for a shake-up in the Department of Defense's outmoded acquisition system. It said the reforms would save money and help the military stay on the cutting edge of technology.Click here to download a pdf of this article, Missile.pdf
TRADE OF THE DAY: FlattenerClick here to download a pdf of this article, FIG@RJO_CurveFlattener.pdf
Another teen specialty apparel retailer, rue21 Inc., has filed for chapter 11 bankruptcy reorganization.Click here to download a pdf of this article, Missile.pdf
Ford Motor Co. plans to cut about 10 percent of staff worldwide as Chief Executive Officer Mark Fields faces escalating pressure to boost profit and a lagging stock price, the Wall Street Journal reported.Click here to download a pdf of this article, Missile.pdf
CME Group Rates Recap- May 2017Click here to download a pdf of this article, CME Group Rates Recap May 2017.pdf
The U.S. and China reached agreement to promote shipments of American natural gas and beef that Commerce Secretary Wilbur Ross said was part of a broader effort to begin reshaping the trade relationship between the world’s two largest economies.Click here to download a pdf of this article, Missile.pdf
CRE-focused equity funds completed 136 major property investments in the first quarter of 2017 totaling $6.1 billion, according to CoStar Group COMPs data. That total is well off the nearly $15 billion in purchases the same set of investors made in the first quarter of 2016.
Equity funds were net sellers of CRE property in the first quarter of this year, completing 171 dispositions totaling $7.9 billion - about in line with the same quarter a year ago.
PE buyers showed a preference for office property investments completing 26 buys totaling $2.167 billion. Multifamily was the second biggest property type category with 47 transactions totaling $1.607 billion. Retail was third with 29 deals totaling $1.547 billion, and industrial was fourth with 28 deals totaling $811 million.
China has rapidly climbed the ranks to become the world's second-largest economy. Now, the most populous nation on the planet wants to increase its influence by digging further into its pockets — flush with cash after decades of rapid growth — to splash out with its "One Belt, One Road" policy.
The initiative is meant to connect Asia, Europe, the Middle East and Africa to bolster trade and development. This weekend, hordes of foreign diplomats and business leaders are expected to descend on Beijing for a two-day meeting about the policy.
First quarter 2017 commercial and multifamily mortgage loan originations increased 9% compared to the same period last year, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.Click here to download a pdf of this article, Missile.pdf
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