Finance  ·  CMBS

Rialto Supplies CMBS Deal Backed by Distressed Loans


J.P. Morgan and Wells Fargo (WFC) are shopping a $132 million CMBS issuance backed by a pool of non-performing loans. It’s the first such issuance in years, experts said, and it’s got the industry taking note.

jpmorgan Rialto Supplies CMBS Deal Backed by Distressed LoansThe Wall Street Journal reports that Rialto Capital Management supplied the deal with 282 loans—224 of which are classified as nonperforming. Loan sale advisor Trepp said in an email Friday that “all non-performing assets are assumed to have a zero percent coupon.”

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Trepp added that it has been working with J.P. Morgan for several weeks now to facilitate easy analysis of the deal, which is set up as a liquidating trust.