Chandan Economics

Q1 2013 Apartment Financing Trends

Apartment debt yields fell below 9.0 percent during the first quarter, as lenders vied for opportunities to originate loans against performing assets with low cash flow risk. Financing cap rate and interest rate spreads both narrowed.

Special Report on Apartment Lending and Credit Risk

Even as underwriting holds to in-place cash flow, historically low-cost financing and the competitive overlap between agency and non-agency lenders are driving exit risks for new loans. These risks are largely mispriced by conventional credit risk models.

Q4 2012 Bank Default and Lending Report

Banks' multifamily and commercial property default rates fall. Biggest jump in net lending in four years.

Measuring Agency MBS Risk

Using the same models applied to bank and life company loans, the Agency Loan Analyst report quantifies potential default and loss severity across each new issue's loan pool.

Lending Trends Data & Reports

Based on Chandan Economics' database of new multifamily and commercial real estate loans, originated across balance sheet, agency, and conduit lenders.

LATEST RESEARCH & REPORTS
May 8 | National Commercial Debt & Investment Trends (Industrial, Office, and Retail) Q1'13 Report | Summary
May 3 | National and Metro Apartment Debt & Investment Trends Q1'13 Reports
May 2 | RELA–Chandan Survey of Commercial Real Estate Lender Sentiment Q1'13

CHANDAN VIDEO

August 15 | Mortgage Bankers News

Apartment Financing Costs Hit Record Lows in Second Quarter | by Michael Tucker

Mortgage Bankers Association NewsLink reports: Apartment lending standards continued to ease in the second quarter, reported Chandan Economics, New York, reflecting higher property prices, lower cap rates and increasingly robust competition among lenders. "The cost of financing apartment acquisitions and refinancing maturing apartment loans fell to record lows in the second quarter," said Sam Chandan, the firm's president and chief economist.

Q4 2012 Apartment Debt Trends

Apartment Financing Costs Hold to Record Lows in Fourth Quarter
February 2013

August 1 | Multi Housing News

Improving Fundamentals, Prices, and Financing Lifting the Apartment Sector

Multi Housing News reports on sliding default rates for bank-held apartment mortgages. From a peak of 4.7 percent during Q3 2010, the default rate on multifamily loans has fallen to 2.4 percent as of early 2012.

Read MHN's coverage of Chandan's Bank Default and Lending Report at multihousingnews.com.

July 28 | REIT.com

Weaker Consumer Confidence Weighs on Real Estate Sector | Interview with Matt Bechard

NAREIT writes: "Consumer sentiment continues to be dampened by discouraging financial news, according to Sam Chandan, president and chief economist with Chandan Economics. Chandan spoke about the state of the economy and its impact on commercial real estate in a video interview with REIT.com in New York at REITWeek 2012: NAREIT’s Investor Forum."

Watch the video at REIT.com

July 19 | GlobeSt

WIll the LIBOR Scandal Impact Construction Lending | by Jacqueline Hlavenka

GlobeSt writes: After the Barclays Capital scandal shed light on interest rate manipulation by global financial institutions, the impact on commercial real estate sector has yet to be seen. Sam Chandan comments: “We cannot say with complete confidence that LIBOR is being determined fairly and accurately. We can say with confidence that the structure of the LIBOR market - effectively an honor system - affords the possibility of malfeasance."

July 17 | CNBC Squawk Box

Monetary Policy and the Cost of Political Inaction | Interview with Martin Soong

Sam Chandan spoke with CNBC's Martin Soong regarding monetary policy developments in the United States intended to stimulate growth. Dr Chandan contends that a further reduction in benchmark rates will have a limited impact.