The deal did not come easily. The banks had to discount the AAA-rated tranche by 235 basis points over the 10-year swap rate, the widest margin ever. Guidance had been 200bp. By comparison, the same sort of deal 12 months ago would have yielded 30bp.
But bankers crossed their fingers that this pioneering effort will lead the way for other deals in a badly struggling market. Blackstone Group has been expected for some time to bring the largest ever CMBS, possibly as much as $11 billion, backed by its recently acquired Hilton Hotels portfolio.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
