Bridger and Commercial Real Estate Lenders Hit CMBS Volume Records in 2004.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Bridger Commercial Funding announced today that in 2004 it securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. $550 million in CMBS CMBS See: Commercial Mortgage Backed Securities loans that were originated through its nationwide network of commercial bank clients, an all-time high for the company. The CMBS industry also had a record year, with domestic CMBS issuance reaching $93 billion -- a 20% jump over 2003. Several factors contributed to these record numbers, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Bob Schonefeld, Chief Executive Officer of Bridger. "A very favorable interest rate environment and the continued dominance of the CMBS market as commercial real estate's source of permanent mortgage debt drove record CMBS volumes in 2004," he stated. "In addition, the growth in both Bridger's loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. volume and its securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. activity far outpaced the industry's 20% growth rate as we continued expanding our relationships with commercial banks nationwide." Schonefeld remains bullish on prospects for the CMBS industry in 2005, despite the potential for higher long-term Treasury yields. "On the supply side, strong acquisition and refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. activity continues. Plus, our client banks are reporting heightened commercial real estate lending activity as the sector continues to recover, a leading indicator of future CMBS business. On the demand side, CMBS loans tend to offer the best overall economics for borrowers. Also, fixed-income investors' demand for CMBS bonds continues virtually unabated un·a·bat·ed adj. Sustaining an original intensity or maintaining full force with no decrease: an unabated windstorm; a battle fought with unabated violence. , helping keep loan spreads in check." Both Bridger and the CMBS industry reached milestones in 2004. Bridger surpassed $2 billion in cumulative loan originations since its founding in 1998, and the CMBS industry issued more than $100 billion in bonds globally for the first time. Bridger is the U.S. banking industry's leading provider of commercial real estate capital and balance sheet management services, supplying permanent loan origination and seasoned debt trading capabilities to over 1,500 banks and 4,500 loan officers nationwide. Bridger gives banks ready access to the secondary mortgage market as a balance sheet management strategy that efficiently reallocates risk. Through the company's CMBS loan origination program, banks boost financial performance by generating substantial fee income while retaining and enhancing borrower relationships. In addition, Bridger's BankXchange(C) platform optimizes banks' loan portfolio risk profiles and returns by facilitating purchases and sales of loan portfolios, whole loans and participations. |
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