CMBS

  • Legacy LLF risks flagged

    A review by Fitch of large loan floating-rate (LLF) CMBS deals issued between 2005 and 2007 shows that sponsors' business plans require careful evaluation and that the risks of downside performance remain. The agency says that LLF deals, often backed by transitional assets, could be an important indicator as more than U$300bn of CRE loans will need to be refinanced from .......

    News Round-up 29 July 2015

  • Euro ABS/MBS mixed

    The European ABS/MBS secondary market continues to see a mixed tone and levels of trading activity.

    Yesterday saw a continuation of the patchy activity seen of late with Dutch prime seeing some signs of softness for once. Peripherals continue to garner increasing interest and consequently spreads closed flat to very slightly tighter. However, liquidity remains extremely thin across the board .......

    SCIWire 29 July 2015

  • EMEA CMBS performance 'stable'

    The stable performance of the Fitch-rated EMEA CMBS portfolio in 2015 is largely due to a limited number of loans maturing so far this year, according to the agency. The percentage of loans in default (44.4%) and post-maturity (63.7%) increased marginally in 2Q15, while the proportion of loans in special servicing (42.3%) fell slightly.

    The agency's maturity repayment index improved to 68.3% .......

    News Round-up 28 July 2015

  • Hiking cycle history considered

    As the likely Fed rate hike date draws nearer, Barclays ABS analysts have examined the performance of securitised products during previous hiking periods. The effect on securitised product credit sectors has previously generally been benign.

    The Barclays analysts paid particular attention to agency RMBS both before and during previous hiking cycles. A typical hiking cycle lasts a year and a .......

    News 28 July 2015

  • CLO consultant tapped

    Eric Bothwell has joined Ashurst as a senior consultant within its CLO practice. He arrives as md from UBS, where he was most recently involved in the sale and unwinding of non-core asset portfolios.

    Bothwell was also one of the founding members of Goldman Sachs' new issue CLO team, responsible for all aspects of transaction structuring, execution and marketing. His .......

    Job Swaps 28 July 2015

  • Euro secondary shows caution

    It's been a cautious start to the week for the European securitisation secondary markets, but BWIC volume is increasing.

    "Overall, market tone is reasonably cautious both because of macro issues, especially China, and also because of the time of year," says one trader. "However we continue to see decent client interest in non-conforming and select peripherals."

    Meanwhile, with month-end approaching .......

    SCIWire 28 July 2015

  • CMBS default rate 'steady'

    The US CMBS default rate has held steady at 13.3%, the same as year-end 2014, reports Fitch. This is due to stable to lower new defaults and steady new issuance levels.

    In 1H15, 109 loans totalling US$1.5bn were newly defaulted, representing a decrease from 1H14 when 161 loans totalling US$2bn defaulted, and from 2H14 when 133 loans totalling US$1.8bn defaulted. .......

    News Round-up 27 July 2015

  • Euro secondary holds up

    The European securitisation secondary market is continuing to hold up despite thin liquidity.

    Buy-side activity remains patchy with volumes overall still very light away from prime. What flows there are are mainly two-way though a selling bias in autos has emerged as investors seek to make room for new issues in the sector among a reasonably strong primary pipeline overall.

    SCIWire 27 July 2015

  • Expanding brand

    CRE appetite spurs European CMBS variety

    European CMBS primary issuance remains slow in relative terms, but the sector continues to innovate. Regulatory pressures are driving alternative options to rated CMBS, as demand for real estate continues.

    A recent Paul Hastings report suggests that European CMBS issuance is set for its best year since 2007. A total of €3.3bn of new CMBS has already been issued in .......

    News Analysis 24 July 2015

  • Euro secondary stays firm

    Tone and spreads in the European securitisation secondary market are staying firm.

    Yesterday saw another solid day in secondary market activity across the board. The usual hotspots continued with prime assets seeing most flows once more, although Italian paper is receiving increasing attention.

    BWIC activity remained reasonably healthy yesterday with most line items going through at or around expected levels .......

    SCIWire 24 July 2015

  • A&P bankruptcy stirs CMBS

    Kroll Bond Rating Agency says it is monitoring the potential impact that Great Atlantic & Pacific Tea Company (A&P) store closures could have on CMBS that the agency has rated. A&P filed for chapter 11 protection on 19 July, just three years after emerging from a previous bankruptcy filing.

    The company operates 296 grocery stores under several brands, including A&P, Food .......

    News Round-up 23 July 2015

  • CRE rating approach inserted

    Moody's has revised its approach to rating EMEA CMBS transactions. The  methodology has been extended to include the approach to rating CRE loans that are not part of a securitisation structure.

    Main considerations in Moody's analysis are the cashflow assessment based on the property quality, the in-place tenancy quality and lease terms, and property cost expectations. The agency's cashflow projection is the .......

    News Round-up 23 July 2015

  • Euro secondary improves again

    The European securitisation secondary market volume again saw a little improvement yesterday as spreads remain firm.

    Secondary trading activity continues to improve across the board with each session. Yesterday saw continuing investor interest in the prime segment and 1.0 CLOs. UK non-conforming had a better day than of late, but the primary market continues to weigh heavily on the sector, .......

    SCIWire 23 July 2015

  • Volatility may hit NPL ratings

    Volatile and uncertain cashflows may prevent Fitch from rating new Italian NPL securitisations for timely payment of interest on the notes in the absence of substantial cash reserves or liquidity lines. This could subsequently deter the agency from assigning such transactions high investment grade ratings.

    Based on comments from market participants, Fitch says that new deals may limit or minimise .......

    News Round-up 22 July 2015

  • US CMBS drifts

    US non-agency CMBS secondary market tone is improving but spreads and activity levels appear to be drifting.

    "The CMBS market has definitely improved from where it was a few weeks back," says one trader. "Overall tone is better thanks to the big headwinds of China and Greece abating for now."

    However, the secondary market still has no strong sense of .......

    SCIWire 22 July 2015

  • SFR substitution risks outlined

    Provisions that allow single-family rental operators to replace properties in securitised portfolios with those from unsecuritised portfolios add risks to SFR transactions, according to Moody's. Voluntary substitution provisions may lead to a reduction in the use of premium release and to the replacement of more valuable properties with less valuable ones.

    "The option to substitute properties in SFR transactions could .......

    News Round-up 22 July 2015

  • Euro secondary sees slow progress

    The European securitisation secondary market continues to see improvement, but progress is still slow.

    "Activity has picked up over the last few days," says one trader. "But we're definitely in summer mode now - it's not improving as quickly as we'd hoped."

    Nevertheless, the trader adds: "In Dutch and UK prime two way flows keep strengthening and spreads are grinding tighter. .......

    SCIWire 22 July 2015

  • REIT ceo replaced

    Kevin Keyes has been appointed ceo of Annaly Capital Management, while retaining the title of president. Annaly co-founder, chairman and current ceo Wellington Denahan will remain chairman of the board and will also serve as executive chairman, focusing on strategic and capital allocation decisions. Keyes will officially replace Denahan in September.

    .......

    Job Swaps 21 July 2015

  • CMBS delinquencies dip

    The European CMBS 12-month-rolling loan maturity default rate increased slightly to 25% from 24.6%, according to S&P. However, the delinquency rate for continental European senior loans decreased to 63.1% from 64%, with the rate for UK loans decreasing to 20.6% from 21.4%.

    Overall, the senior loan delinquency rate decreased to 49.8% from 50.5%. The total number of delinquent loans decreased .......

    News Round-up 21 July 2015

  • Euro ABS/MBS coming back to life

    The European ABS/MBS secondary market is slowly coming back to life.

    Yesterday saw a continuation of the recent increasingly positive sentiment across most European ABS/MBS deal types and jurisdictions. Consequently secondary spreads remained robust aside from UK non-conforming RMBS, which is still experiencing some softness thanks to primary activity. At the same time, buying interest continues to increase from recent .......

    SCIWire 21 July 2015

  • Euro secondary stays positive

    European securitisation secondary markets are remaining positive, although activity is still limited.

    Sentiment continues to improve across the board, but volumes remain light. Prime ABS/MBS and 1.0 CLO paper saw increased two-way flows on Friday, but peripherals, particularly Portuguese and Spanish names, are still lagging albeit in a tightening trend.

    The resurgent primary market is also having an impact - .......

    SCIWire 20 July 2015
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