CMBS originators hope to navigate tricky market by joining forces

10/17/2011 | GlobeSt.com

Citigroup, Deutsche Bank, Guggenheim Securities and UBS are negotiating to combine $1.5 billion worth of commercial mortgages to sell them as bonds, according to sources. The talks are still in the preliminary stages, but if the deal goes through, it could help the originators better navigate the current volatile capital markets as a group. "It is more efficient for these four lenders, all of whom are major players in the marketplace, when they get enough capital together, it makes sense for them to join forces," said Tom Fink, managing director of Trepp. "They can get a deal done quicker and they won't be holding the assets for too long."

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