CMBS

  • NPL pools up for bid

    The US Department of Housing and Urban Development has announced its first NPL sale under the Distressed Asset Stabilization Program for 2015 (SFLS 2015-1). Freddie Mac also announced its next standard pool NPL sale, scheduled for 20 May.

    HUD's latest sale consists of two portfolios: the first comprising geographically diversified NPLs (dubbed national pools), to be auctioned on 24 June; .......

    News Round-up 5 May 2015

  • Delinquency rate inches down

    Trepp's US CMBS delinquency rate inched lower in April, increasing the number of months during which it has fallen in the last two years to 21. The delinquency rate now stands at 5.57%, down by 1bp from February and March, and 87bp lower than the level a year ago.

    Last month, US$1.35bn in loans became newly delinquent, which put 26bp .......

    News Round-up 5 May 2015

  • Sharp rise in CMBS early prepays

    While US CMBS 2.0 loans have increasingly paid off with yield maintenance or been defeased, the pace has picked up even more since the second half of 2014. This is particularly noticeable for five-year loans, despite the upfront penalty involved.

    The low level of rates relative to loan coupons makes it expensive for loans to pay off in this way, .......

    News 5 May 2015

  • Expected loss inches lower

    Moody's base expected loss for US conduit/fusion CMBS fell to 7.7% in 1Q15, from 7.9% the previous quarter. In addition, the share of specially serviced conduit loans declined for the tenth consecutive quarter, to 6.96% in Q1 from 7.32% in 4Q14.

    "We expect the positive momentum to continue in the commercial real estate sector as favourable financing conditions and economic .......

    News Round-up 1 May 2015

  • Macerich JV exposure gauged

    Sears is forming its third real estate joint venture, this time with Macerich (MAC), involving nine Sears properties located at MAC malls. The purchase price for the properties is US$300m, with MAC contributing US$150m in cash for its 50% interest.

    The JV will lease back existing stores to Sears under a triple-net master lease agreement, with a 10-year initial term .......

    News Round-up 1 May 2015

  • MBS trio tapped

    Cello Capital Management has recruited Toby Maitland Hudson, Scott Grabine and Kashif Akhtar. All three arrive as traders from Saba Capital Management.

    Prior to joining Cello, Maitland was md at Saba and executive director in CMBS trading at JPMorgan before that. Akhtar has also held senior roles at Saba and JPMorgan, both with an emphasis on CMBS trading. In addition, .......

    Job Swaps 1 May 2015

  • Euro secondary on hold

    The European secondary securitisation markets are now effectively on hold until Tuesday.

    With European and/or UK public holidays today and Monday and another EU-Greece meeting tomorrow, unsurprisingly yesterday saw no major change in the patterns seen in recent days and looks set to remain the same today. Flows were again light yesterday, but spreads held up with the exception of .......

    SCIWire 1 May 2015

  • GSA stress emerges

    The US$200.1m NGP Rubicon GSA Pool loan - which is split pari passu in the WBCMT 2005-C20 and WBCMT 2005-C21 CMBS - has transferred to special servicing with CWCapital. The move appears to be due to recent performance declines and the pending maturity of the loan in June.

    The 14 properties in the portfolio were all originally primarily leased to .......

    News Round-up 30 April 2015

  • Euro ABS/MBS unsettled

    The European ABS/MBS secondary market has become unsettled as broader market volatility spikes, but for now spreads are holding firm.

    A mix of the sell-off in Bunds and month- and week-end for most of Europe limited flow trading activity across European ABS/MBS yesterday. BWICs generally traded in line with expectations though some Spanish names took a hit. Overall, spreads held .......

    SCIWire 30 April 2015

  • Euro secondary takes back seat

    Activity is on the rise in European securitisation secondary markets this week so far, but the primary market is still traders' main focus.

    "BWICs picked up a bit yesterday and flows were reasonable," says one trader. "ABS/MBS Secondary is still taking a little bit of a back seat to primary where the Warwick print was the main talking point yesterday .......

    SCIWire 29 April 2015

  • CMBS 2.0/3.0 watchlistings drop

    The volume of newly watchlisted US CMBS 2.0/3.0 loans fell in the April remittance to just over US$1bn, from US$2.1bn in February and US$1.9bn in March, according to Barclays Capital figures. The 2013 and 2014 vintages accounted for the bulk of the watchlistings, with some the result of pro-forma underwriting leading to low initial DSCRs.

    JPMBB 2013-C15 has US$100m of .......

    News Round-up 29 April 2015

  • Euro ABS/MBS picking up again?

    The European ABS/MBS secondary market continues to keep one eye on primary, but there are signs that activity is beginning to pick up again.

    "It was very quiet again yesterday, but activity looks to be picking up today helped by a few more BWICs coming out," says one trader. "That said, there's still a strong focus on primary with the .......

    SCIWire 28 April 2015

  • Euribor goes below zero

    Last week, three-month Euribor entered negative territory for the first time. As one-month Euribor was already negative, more than half of the available distributed European ABS market is now affected by negative interest reference rates.

    The three-month reference rate is now -0.002. One-month Euribor is -0.034, while six-month and 12-month both remain positive, at 0.066 and 0.173, respectively.

    As interest .......

    News 27 April 2015

  • CMBS 2.0 special servicing remains light

    Fitch says that the incidence of US CMBS 2.0 loans entering special servicing remains infrequent and will likely stay this way for the foreseeable future, at least until the loans approach maturity. This is because in-place cashflow is generally sufficient and 2.0 loans should continue to benefit from low interest rates.

    Currently 27 conduit loans, totalling US$282m from the 2010 .......

    News Round-up 27 April 2015

  • APAC ratings remain stable

    Fitch reports that 243 Asia Pacific structured finance tranches were affirmed in 1Q15. Rating actions in Australia and New Zealand were once again supported by strong economic performance, with most ratings reviewed during the quarter being affirmed, contributing to 90% of the total affirmations in the region. In addition, nine Australian tranches were upgraded.

    In Japan, 11 ratings were affirmed, .......

    News Round-up 27 April 2015

  • Euro CLO BWIC bandwagon rumbles on

    As expected Friday was a comparatively quiet day across European secondary securitisation markets, but today sees the European CLO BWIC schedule take the lead once more.

    The end of week drop in European BWIC volume had a knock on effect in flow trading - diminishing volumes there as well. Nevertheless, the usual pockets of activity surrounding autos, CLOs and prime .......

    SCIWire 27 April 2015

  • Loan override feature added

    A new Trepp loan override feature has been added to Kroll's credit profile (KCP) portal. The tool enables users to upload the agency's loss scenarios directly into Trepp's analytics engine to perform cashflow analysis on CMBS certificates. The overrides come in an Excel workbook that is available on the KCP portal for each CMBS deal in Kroll's coverage universe.

    Within .......

    News Round-up 24 April 2015

  • Euro secondary staid but stable

    Yesterday was quieter in European secondary securitisation markets than previous days and spreads remained stable. Today looks set to be the same with a limited total volume on the BWIC calendar and the market opening flat this morning.

    Yesterday's quieter day was partly a result of very heavy focus on the previously mentioned 14:00 peripheral BWIC, for which the covers .......

    SCIWire 24 April 2015

  • NPL sales to deepen market

    The moves by Fannie Mae and Freddie Mac to establish programmed sales of non-performing loans (SCI passim) will increase the depth of the distressed residential mortgage market, says Fitch. This could have positive implications for US banks seeking to sell their own NPLs.

    As more NPL buyers emerge and pricing trends develop, the magnitude of the impact to banks' NPL .......

    News Round-up 23 April 2015

  • CMBS 1.0 shortcomings tackled

    Fitch reports that progress is being made on addressing the more contentious structural weaknesses of European CMBS, but without delivering on calls for greater standardisation of documentation. With the sector set to remain dominated by complex large financings of secondary property portfolios, the agency believes vigilance is key to preventing deterioration in competition.

    Issuer profit extraction mechanisms that were skewed .......

    News Round-up 23 April 2015

  • Resolutions outpacing defaults

    €10.4bn of European CMBS loans are currently in special servicing, representing 31% of the outstanding market, according to Morgan Stanley figures. As loan maturities moderate and servicers continue working out legacy defaults, loans worth over €5bn have exited the special servicing bucket since January 2014.

    Loss severity of worked-out loans averaged 17% last year and the average time in special .......

    News Round-up 23 April 2015
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