Wall Street Banks Cut Out of Prized Commercial Mortgages
This article is for subscribers only.
MetLife Inc. and Prudential Financial Inc. are cutting Wall Street’s middlemen out of the resurgent market for loans backed by some of the nation’s most-prized commercial properties.
Banks from Deutsche Bank AG to JPMorgan Chase & Co. -- which originate loans and then sell them off as securities -- risk losing out as rising borrowing costs prompt them to charge more to make money. Insurers are offering cheaper real-estate loans because they don’t need to quickly sell the debt at a profit, pushing Wall Street firms to lower their standards just to get deals done.