NEW YORK, Jan 23 (IFR) - Matthew Masso has been tapped by Credit Suisse to head the commercial real estate finance group, replacing former chief Mark Brown, a person familiar with the matter told IFR.
Credit Suisse ranked third in terms of CMBS originations last year with US$13bn of deals, according to IFR league tables.
Brown stays on as a senior advisor to the Credit Suisse real estate team, the person said.
He joined in 2013 to restart the bank’s commercial mortgage effort after it was shuttered in the wake of the financial crisis.
The bank expects to continue its focus on making large loans and conduit loans for securitization with no strategic shift in its strategy, the person said.
To satisfy new risk retention rules Credit Suisse has internal approvals to keep a 5% vertical slice of each new deal, the person said. But the bank prefers to partner with other firms that will hold the risk instead.
Banks across Wall Street have been grappling with the rules, which took hold in December and are designed to make CMBS less risky.
But rules also have been blamed for the declining market share of CMBS in real estate finance.
New CMBS issuance last year fell nearly 25% to US$76.5bn from volumes in 2015, according to data from the Securities Industry and Financial Markets Association.
A number of key former Credit Suisse staffers recently reunited at commercial mortgage finance firm World Class Capital Group, which plans to be a lender and CMBS buyer.
At Credit Suisse Masso will report to head of asset finance Michael Dryden. Other key staffers on the commercial mortgage team are John Tesoriero, Stefanos Arethas, Dante LaRocca and Chuck Lee. (Reporting by Joy Wiltermuth; editing by Shankar Ramakrishnan)