U.S. commercial paper shrank for the week by $20 billion
Editor’s Note: This is an important statistic to watch, if the U.S. economy is really seeing recovery, we should see steady increases in the commercial paper market. That would show that businesses are needing more short-term funding for operation like increasing production and payroll and that would show up in increases of issuance of commercial paper. It is important to watch the “plumbing” of our financial markets to see if the media and analysts are in-line with what is actually happening in the capital markets which drive growth.
Reuters - The U.S. commercial paper market contracted for the first week since early February, suggesting a lingering impact from the global credit crisis, Federal Reserve data showed on Thursday.
For the week ended March 3, the size of the U.S. commercial paper market, a vital source of short-term funding for companies’ day-to-day operations, fell by $20.4 billion to $1.134 trillion outstanding, from $1.154 trillion outstanding the previous week.
Former Merrill Lynch CEO John Thain appointed CIT chief
Editor’s Note: This is good news for CIT, they really needed strong leadership to turn around the large independent business lender. Mr. Thain will have a large task at hand as well. CIT has a large amount of outstanding debt and they are not getting TARP assistance in the commercial paper market. He is looking for a 2-3 year turn around for the firm. If he can pull that off he will really be back on top of his game as a premier financial CEO. Good luck John.
The former chief executive of Merrill Lynch, John Thain, has been appointed as the new boss of US lender CIT Group, which recently emerged from bankruptcy.
MBA Reports Increases in Commercial Loan Originations
Editor’s Note: This is an exciting sign for the commercial real estate industry. After a 2+ year decline in loan originations this is big news. This is the looming problem that people are looking at to see if it is going to really put it to the regional banks that have large exposure to this type of commercial paper. I know a large player in this space and he was elated to hear this news and he has seen a pickup in business so that could be a bight spot. Lets keep cautiously optimistic.
The Mortgage Bankers Association (MBA) reported on Tuesday that commercial mortgage originations were at a higher level during the last quarter of 2009 than in either the previous quarter or in the 4th quarter of 2008, but multifamily originations continued to lag. The data was part of the MBA’s Quarterly Survey of Commercial/Multifamily Bankers Originations.
Commercial REO Brokers Association To Host LA Dinner Meeting January 22 at LAX Marriott
Editor’s Note: I am thinking about flying down to this event and meet some of the players in the Commercial REO space being that this is the shoe that is dropping right now. I talked to a good friend of mine that is a Hard Money guy and he said its just getting brutal out there is the commercial real estate sector to the point that banks are even enforcing balloon payments in loans that are coming due and letting them just keep paying their mortgage until things improvement because most owners don’t have the cash and the banks doesn’t want to own the property.
The Commercial REO Brokers Association, “CREOBA” (www.creoba.com), the exclusive commercial national association dedicated to assisting real estate professionals who want to provide REO services to banks and loan providers, proudly announces its upcoming dinner meeting, scheduled for January 22 at the Los Angeles Airport Marriott on 5855 West Century Boulevard, from 6:00 PM – 10:30 PM PST.
The event, sponsored by Keller Williams Commercial Realty, will include an overview of the Commercial REO market, as well as the opportunity for attendees to meet asset managers, investors and other brokers.
Guests will also have an opportunity to listen to a panel of experts about industry trends and the skills necessary to becoming a successful Commercial REO Broker. Guest speakers for the evening include: Alice Sorenson, Light House Real Estate Solutions; Craig Berardi, REO Solutions; Ken Pratt, Old Republic Default Management Services; Brad Knapp, BREO, Inc.; Tom Oldefedent, Asset Management Servicing; and Miguel Pena, Commercia REO Asset Manager.
Commercial foreclosures in Austin Texas soars 108% in 2009
2010 will be the year to watch in commercial real estate. With all the talk of full recovery in 2010, we still have a declining retail market, high unemployment and commercial loans coming due. If we can see the earnings come in where the market has priced them and jobs start getting created then maybe we will be in the clear.
But, with more debt and taxes set to be put into effect, we will see continued pressure on the U.S. consumer and that will most likely put a damper on companies plans for expansion and that will have a direct impact on the commercial real estate sector.
Hundreds of lay offs in the manufacturing industry in Austin this year are to blame for a 108-percent increase in the number of commercial foreclosures for 2009, the highest of any Texas city.
Piper Jaffray starts $300 million dollar commercial paper program
Piper Jaffray Companies plans to start a $300 million commercial paper program, the investment bank said in a regulatory filing on Wednesday.The program will in part fund Piper Jaffray’s securities portfolio and provide general working capital, the filing said.
Piper Jaffray, which caters to small and mid-size business customers, is recovering from five consecutive quarters of quarterly losses, beginning in the first quarter 2008 through first quarter 2009.
U.K. Fraud Office Arrests Six in Alleged Commercial Loan Fraud
U.K. prosecutors arrested six people and searched 19 properties in an investigation into suspected advance-fee fraud and rent fraud in the commercial property market.
The Serious Fraud Office is investigating a company operating as Gresham Ltd. and Gresham Finance (London) Ltd. that offered commercial loans of as much as 250 million pounds ($416 million), the London-based agency said today in a statement. The companies charged applicants up to 50,000 pounds for voluntary background investigations and a payment of as much as 5 percent of the face value of the loan, the SFO said. Suspected losses are at least 12 million pounds, SFO spokesman Sam Jaffa said.