Current Market Note Pricing

[Chris Seveney]

This month we have seen an incredible amount of potential deal flow come across our desk, but based on the bid results, a lot of trades are still not trading. 

We are seeing performing loans (Scratch and Dent) with a WAC between 4-6 trading in the low to mid 70's.

Bridge debt in 10-11% trading at high 90's and Par. 

As of now it is still a sellers market but there were ALOT of loans that did not trade that lenders are looking to get off their books, so I anticipate loan pricing to soften slightly.

[Abby Shemesh]

@Chris Seveney We are seeing exactly the same thing with the exception of short-term bridge not making it quite to par (low 90s in low double digit coupon rates). Many of the seller/lenders we are dealing with are still going through the ten stages of grief on the pricing expectations. I find myself having to explain over and over how our debt-money-system works to c-suite executives that have gotten complacent when it comes to subsidized money from the FED over the past 13 years. Nevertheless, we are capturing some valuable trades in the interim. The major hurdle I am running into is being able to place or syndicate on Hotel paper (PL and NPL) as well as NPL ground-up construction loans. Any insight on where to put this loans if they hit our desk would be much appreciated.