Spencer Platt/Getty Images

Several Wall Street banks have come to dominate a corner of U.S. commercial real estate finance over the past seven months, even as the coronavirus pandemic has cast a long shadow over the market.

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Deutsche Bank (DB) Goldman Sachs (GS) and JP Morgan Chase (JPM) each significantly grew their share of the roughly $550 billion commercial mortgage-backed securities (CMBS) market during the pandemic, according to a new report by Deutsche’s research arm.

The CMBS market is a type of property finance where Wall Street banks make loans on hotels, skyscrapers, and other types of commercial buildings to package into bond deals that investors buy.

This chart shows which Wall Street banks won — and lost — market share since the pandemic took hold in the U.S.

Deutsche Bank Research, Index data

Researchers categorized loans as pre-COVID from January to March, but as post-COVID as of April. Loans made by more than one bank went into the “other” category.

By those metrics, Deutsche, long a major player in U.S. commercial real estate finance, ranked as the top lender in the sector, with a 20% market share of the “COVID-19” lending pie.

Deutsche Bank has been a key financier of the sprawling Hudson Yards complex development on Manhattan’s far West Side, as well as a long time lender to President Donald Trump and his son-in-law Jared Kushner‘s real estate company.

Goldman Sachs ranked second with a 18% lending share during the pandemic and JP Morgan third with a 15% slice.

Deutsche Bank declined to comment. Goldman and JP Morgan did not respond to requests for comment.

Investors have been looking forward to major banks providing an update on their commercial real-estate exposure for clues about the shape of the broader economy, when the third-quarter U.S. corporate

(Bloomberg) — Deutsche Bank AG Chief Executive Officer Christian Sewing didn’t rule out considering a takeover as early as next year if the lender’s share price recovers, while saying the priority remains implementing his turnaround plan.

Speaking in an exclusive interview with Bloomberg TV, Sewing said he was “laser-focused” on executing on his four-year strategy, which runs through 2022. But pushed on whether that means no deal before then, the CEO said the key phase of the bank’s transformation will actually be completed within the next three months.



a man wearing a suit and tie: Deutsche Bank AG Chief Executive Officer Christian Sewing at The Handelsblatt Banking Summit


© Bloomberg
Deutsche Bank AG Chief Executive Officer Christian Sewing at The Handelsblatt Banking Summit

Christian Sewing on Sept. 2.

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Photographer: Alex Kraus/Bloomberg

“We’ve said 2019 and 2020 are the key years” of the restructuring, he said in the interview. While Sewing didn’t say if and when he’s willing to consider big deals, he reiterated he wouldn’t want to be the takeover target in any transaction. If the bank’s valuation were to recover, “we then have a different position, a better position,” the CEO said.

The comments come as the coronavirus pandemic has reignited takeovers and fueled deal chatter in boardrooms across the continent. UBS Group AG Chairman Axel Weber has drawn up a wish list of potential merger candidates, with Deutsche Bank among the most favored scenarios, Bloomberg reported last month. The two lenders briefly held informal talks last year and Sewing, too, privately favors a deal with UBS, Bloomberg News has reported.

‘Junior Partner’

“Consolidation needs to happen in Europe,” Sewing said in the interview. But for Deutsche Bank, “it’s important that we’re not a junior partner.” The CEO also pointed out that most of the recent deals in European banking have been domestic, because regulatory obstacles to cross-border consolidation remain.

For now, Deutsche Bank’s market value would

(Bloomberg) — Deutsche Bank AG’s regulatory headaches just got personal for Chief Executive Officer Christian Sewing.



a man wearing a suit and tie: Christian Sewing


© Bloomberg
Christian Sewing

The 50-year-old banker now has to annually certify that the German lender is adhering to a recent settlement in which U.S. authorities fined the firm for violating swaps reporting rules. The unusual requirement, which could hold Sewing accountable for future missteps by the bank, follows years of compliance failures that have put Deutsche Bank under the microscopes of Washington watchdogs. Many precede his tenure as CEO.

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The constraint, imposed last week by the U.S. Securities and Exchange Commission, poses a fresh risk for bank executives whose firms break the rules — a longstanding goal of progressive lawmakers and policy makers. Such demands from regulators could become more common should Democrat Joe Biden win the White House and install new enforcers at federal agencies that police Wall Street.

“It’s not something you see as part of the standard settlement package,” said Stephen Crimmins, a former SEC enforcement attorney who is now a partner at Murphy & McGonigle.

In a statement, Deutsche Bank said the firm’s agreement to the SEC order shows it’s “committed to compliance and cooperation with U.S. regulators.” An SEC spokeswoman declined to comment.

CFTC Sanction

The SEC move applies to anyone who holds the CEO position. What prompted it was a June case from the Commodity Futures Trading Commission — the main U.S. regulator of the $559 trillion global swaps market. The CFTC had penalized Deutsche Bank $9 million over a 2016 outage that prevented the firm from disclosing swaps data for five straight days.

In the months after the breakdown, Deutsche Bank agreed to the appointment of an outside monitor to ensure its compliance with swaps reporting rules due to the “breadth of the failures”



a blue car parked in a parking lot: Nio


© Nio
Nio

  • Deutsche Bank lifted its profit and sales forecasts for Chinese electric car manufacturer Nio on Tuesday, citing the company’s promising move into the premium autos sector.
  • In a note probing whether Nio can be “the next iconic auto brand,” analysts led by Edison Yu cited growing favorability in the expanding Chinese market.
  • One recent study found Nio boasts higher odds of customer referral in the country than Tesla, BMW, and Mercedes Benz.
  • Deutsche Bank reiterated its “buy” rating and $24 target price for Nio shares. The target implies a 28% leap from Monday’s closing level over the next 12 months.
  • Watch Nio trade live here. 

Nio may not have the intense following enjoyed by industry leader Tesla, but Deutsche Bank thinks the electric car manufacturer can quickly dominate the expanding Chinese market.

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In a Tuesday note delving into whether the company can become “the next iconic auto brand,” analysts led by Edison Yu highlighted Nio’s growth in the competitive electric-vehicle market. For one, sales are trending higher. The team projected record third- and fourth-quarter deliveries and raised its estimates for full-year sales and earnings.

“As [battery-powered electric vehicle] adoption increases and word of mouth spreads, we believe Nio can take material share in the premium segment as consumers begin to understand the value proposition and quality of its products and services,” Deutsche Bank said.

Read more: JPMORGAN: The best defenses against stock-market crashes are delivering their weakest results in a decade. Here are 3 ways to adjust your portfolio for this predicament.

The lifted forecast backs the firm’s “buy” rating and $24 price target for Nio shares. That target implies a 28% rally from Nio’s Monday closing level over the next 12 months.

Nio gained as much as 7% following the note’s release.

Some investors

The MarketWatch News Department was not involved in the creation of this content.

LITTLE ROCK, Ark., Sep 28, 2020 (GLOBE NEWSWIRE via COMTEX) —
LITTLE ROCK, Ark., Sept. 28, 2020 (GLOBE NEWSWIRE) — Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today that its Executive Vice President, Chief Financial Officer and Treasurer, Mark Wallace, and Senior Vice President, Sales, Joe McCourt, are scheduled to participate in Deutsche Bank’s 28th Annual Leveraged Finance Conference on October 6 & 7, 2020.

ABOUT UNITI

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of June 30, 2020, Uniti owns 6.5 million fiber strand miles and other communications real estate throughout the United States. Additional information about Uniti can be found on its website at www.uniti.com.

INVESTOR AND MEDIA CONTACTS:

Mark A. Wallace, 501-850-0866
Executive Vice President, Chief Financial Officer & Treasurer
[email protected]

Bill DiTullio, 501-850-0872
Vice President, Finance and Investor Relations
[email protected]

COMTEX_372009298/2471/2020-09-28T16:15:30

Is there a problem with this press release? Contact the source provider Comtex at [email protected] You can also contact MarketWatch Customer Service via our Customer Center.

(C) Copyright 2020 GlobeNewswire, Inc. All rights reserved.

The MarketWatch News Department was not involved in the creation of this content.

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