The Gateway to Algorithmic and Automated Trading

JP Morgan To Announce $1.5 Billion Commercial Mortgage-Backed Bond - Source

Published Wednesday, 9th February 2011 10:24 pm - © 2011 Dow Jones

By Anusha Shrivastava


NEW YORK -(Dow Jones)- J.P. Morgan Chase & Co. (JPM) will announce a $1.5 billion commercial mortgage-backed bond on Wednesday, said a person familiar with the matter.

The bond will be sold via the private Rule 144a market.

The deal comes right after the biggest commercial-mortgage-backed security to come to market since the financial crisis, a $2.2 billion deal, priced on Tuesday.

That deal came via Deutsche Bank AG (DB, DBK.XE) and UBS AG (UBS, UBSN.VX). Demand was strong enough that its biggest slice was priced to yield just 3.51%.

Market participants expect CMBS issuance to be in the range of $40 billion to $45 billion this year.

The new issuance pipeline is "robust" with $11.6 billion of volume projected for the first quarter, said Citigroup Inc. (C) analysts in a recent note. More new commercial mortgage-backed securities deals are expected to surface this year, with some estimates in the area of $30 billion to $40 billion. That is about four times what was sold in 2010.

Separately, Morgan Stanley (MS) and Bank of America Merrill Lynch are also selling a $1.548 billion commercial mortgage-backed security.

Royal Bank of Scotland Group PLC (RBS, RBS.LN) and Wells Fargo & Co. (WFC) are also marketing a $1.3 billion commercial mortgage-backed security, according to a person familiar with the matter.

The bond is to be sold via the private Rule 144a market.

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227;

    More Like This...