The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Mortgage finance: The revival of European CMBS – but not as we knew it

The market is showing signs of revival, but it will be smaller and less diversified than it was at its peak.

It would be appropriate if a transaction named Taurus turns out to have triggered a sustained and bullish revival in the market for European commercial mortgage-backed securities. The €1 billion Taurus 2013 deal, led in May by Bank of America Merrill Lynch and HSBC, was certainly regarded as an important breakthrough, given that it was the first fully syndicated, publicly placed European CMBS since the financial crisis. Backed by a loan originated by BAML in February for a portfolio of 37,000 multi-family units in Dresden managed by real estate company Gagfah, each of the tranches on Taurus 2013 was oversubscribed, allowing for pricing to be tightened across the capital structure. A more testing examination of the strength of demand for European CMBS came the following month, with the launch of another Gagfah multi-family CMBS. The €2 billion German Residential Funding (GRF) deal was comfortably the largest European CMBS since the financial crisis. Although it was doubled from its planned minimum size, pricing on the most junior tranches was widened from the original guidance.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree