Stories by Jen Ripper
By Jen Ripper | November 30, 2017
Nearly a year ago, the commercial mortgage-backed securities (CMBS) market officially adopted risk retention rules as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The rules were designed to align the interests of sponsors and investors. Risk retention requires lenders originating loans to retain a 5% slice of each CMBS deal for five years, thereby forcing issuers to have “skin in the game.”
By Jen Ripper | September 28, 2017
Nearly ten years ago, the Federal Reserve (Fed) embarked upon what became known as quantitative easing as a way to combat the financial crisis of 2008. With the Fed Funds rate near zero percent, the Fed announced it would purchase U.S. Treasury notes and mortgage-backed securities. After three rounds of quantitative easing, the Fed ended its purchases in late 2014. During that time, the Fed has purchased nearly $1.78 trillion of agency mortgage-backed securities (MBS).
By Jen Ripper | August 3, 2017
Summer conjures up warm memories of family vacations, lazy days, endless ice cream, amusement rides, walks on the beach, barbeques, and of course, occasional heat waves. Bananarama’s summertime hit “Cruel Summer,” which touches on oppressive heat, climbed the Billboard charts in 1984. Appropriately, the music video was shot during a heat wave.
For some investors, it may seem like a cruel summer with limited opportunities to generate alpha. It certainly feels like most major markets are heating up as risk premiums continue to grind tighter, leaving investors commiserating.
By Jen Ripper | June 8, 2017
In December 2016, the commercial mortgage-backed securities (CMBS) market officially adopted risk retention rules as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The rules were designed to promote an alignment of interests between sponsors and investors. Risk retention requires lenders originating loans to retain a 5% slice of each CMBS deal for five years, thereby forcing issuers to have ‘skin in the game.’
By Jen Ripper | April 13, 2017
In today’s tight spread and low interest rate environment, the search for relative value opportunities can be challenging. The commercial real estate market has experienced strong growth in recent years as evidenced by continued property price appreciation, rising occupancies and rent growth across major property types.
By Jen Ripper | October 13, 2016
This week’s chart depicts the realized cumulative loss rate experienced thus far for Commercial Mortgage-Backed Securities (CMBS) conduit transactions originating between 2004 and 2008. Cumulative losses are expected to rise in the coming months as legacy CMBS loans reach their maturity dates.
By Jen Ripper | March 17, 2016
The S&P 500 and Dow Jones Industrial Average indices have, over the past four weeks, retraced 90% and 88% of the move over the first six weeks of the year, while corporate spreads have not only recouped their losses but have now tightened on a year-to-date basis. Meanwhile, commercial mortgage backed securities (CMBS) cash markets have remained largely unchanged.
By Jen Ripper | March 3, 2016
Student loan debt has tripled over the past 10 years, reaching $1.2 trillion in the fourth quarter of 2015. Total student loan debt now accounts for 10.2% of total household debt.