CMBS

  • Originator influx weakening CMBS

    Fitch says it is finding disparities in the underwriting metrics of US CMBS loans based on originator type, having measured 30 originators that range between large banks, small banks and non-banks. Against the five credit metrics it measured, the agency notes an overall decline in credit quality in recent months.

    "CMBS investors are becoming increasingly concerned about the ability of .......

    News Round-up 9 June 2015

  • Balloon date pay-offs slip

    The percentage of US CMBS loans paying off on their balloon date dipped sharply in May after an impressive April reading, reports Trepp. The latest reading is 69.8%, more than 10 points below the April rate, which was the highest reading since November 2013. The May rate is a little above the 12-month moving average of 66.1%.

    By loan count as .......

    News Round-up 9 June 2015

  • Euro secondary stabilises

    After a week of softening and amid continued broader market volatility the non-peripheral European securitisation secondary markets stabilised yesterday and have opened unchanged this morning.

    "It was a bit more active yesterday and the market appears to have stabilised," says one trader. "We saw two-way flows in quite a few sectors, though mainly in prime paper - from autos, to .......

    SCIWire 9 June 2015

  • Values-to-appraisals trending upwards

    Kroll Bond Rating Agency (KBRA) has released a report summarising trends in KBRA values to third-party appraisals, as well as KLTVs and credit enhancements across US CMBS. The KBRA value variance to appraisal has trended upwards across the agency's rated universe since it began rating conduit transactions in 2Q12, as property prices have increased over the same period.

    The average .......

    News Round-up 8 June 2015

  • Further Mint scrutiny stressed

    Fitch suggests that the exposure of hotel profitability to changes in supply and demand for rooms would have led to lower ratings on some tranches of the recent multi-jurisdictional Mint 2015 CMBS transaction, if rated by the agency. The difference is more pronounced for senior classes denominated in euros, where Fitch would not have assigned a triple-A rating.

    Fitch says that .......

    News Round-up 8 June 2015

  • Credit profile portal integrated

    Kroll Bond Rating Agency says its CMBS credit profile (KCP) analysis is now fully integrated onto Trepp's analytics platform. Features include KBC opinions that will be available for each class, a newly created KCP snapshot (which provides the transaction's aggregate losses in all three of Kroll's loss scenarios) and the ability for clients to view deal commentary via KCP reports.

    News Round-up 8 June 2015

  • CMBS delinquencies at year low

    US CMBS delinquencies fell by their largest margin in over a year thanks to high resolution volume and steady new issuance, according to Fitch's latest index results for the sector. Loan delinquencies fell by 19bp in May to 4.48% from 4.67% a month earlier, while the dollar balance of late-pays fell by US$646m to US$17.1bn from US$17.7bn in April.

    The .......

    News Round-up 8 June 2015

  • CRE equity cushion restored

    Moody's says that the equity cushion for pre-crisis CRE loans originated at a 75% LTV has improved to 30% or more on average over the past year as the recovering economy has boosted property values. Loans originated at a 75% LTV in 2004-2008 now have LTV ratios of between 43% and 68% as adjusted by Moody's/RCA Commercial Property Price Indices (CPPI) .......

    News Round-up 8 June 2015

  • Euro ABS/MBS mixed

    Despite wider market volatility and an overall weakening tone European ABS/MBS secondary market sectors continue to see mixed fortunes.

    The latter half of last week saw an upswing in BWIC supply, but was not met with sufficient demand as many line items did not trade. Overall market tone softened on the back of Greek concerns and broader credit weakness, but some sectors .......

    SCIWire 8 June 2015

  • Retail portfolio transfers mooted

    Moody's has been informed that Franklin C. Gatlin III has proposed to transfer the ownerships of Pacific Coast Plaza, Eastlake Terraces and Chula Vista II portfolios to three potential Delaware-based companies. The companies, still to be formed, will be indirectly majority owned and controlled by a real estate investment fund affiliated with Angelo, Gordon & Co.

    In connection with the transactions, affiliates of Angelo, Gordon .......

    News Round-up 5 June 2015

  • Theatre Hospitals restructuring closes

    The long running Theatre Hospitals CMBS restructuring closed on 28 May. This was confirmed in an announcement from law firm Paul Hastings, who represented Capita Asset Services in connection with the restructuring of the £1.65bn loan financing, which included a restructuring of the existing swap positions with an approximate value of £600m.

    Capita acted as servicer of the £960m senior loans, held .......

    News Round-up 5 June 2015

  • B-piece stripping risks examined

    The practice of B-piece coupon stripping increases the risk of interest shortfalls and credit losses in investment grade classes of US conduit CMBS, reports Moody's. This is particularly due to the slippage in CMBS collateral quality over the past two years.

    B-piece coupon stripping reduces the fixed coupon payment of below investment grade securitised principal and interest bonds and allocates this payment .......

    News Round-up 5 June 2015

  • Bridge loan partnership formed

    Thorofare Capital and DoubleLine Capital have formed a partnership under which  the former will originate, underwrite and service middle-market CRE bridge loans to be purchased for clients whose accounts are managed under the DoubleLine Opportunistic CRE Debt Strategy. Thorofare will serve as the exclusive originator for the loans within a range of underwriting criteria mutually defined by both companies.

    The programme will fund senior whole .......

    Job Swaps 3 June 2015

  • US CMBS loss severities drop

    The weighted average loss severity of US CMBS loans liquidated at a loss dropped to 24.5% in 1Q15 from 50.8% in 4Q14, according to Moody's. This is largely due to the liquidation of four large loans with disposition balances higher than US$100m for loss severities of less than 1.5%.

    "Loss severities actually decrease the larger the size of the loan .......

    News Round-up 3 June 2015

  • Daily returns index launched

    FTSE Group and the National Association of Real Estate Investment Trusts (NAREIT) have launched the FTSE NAREIT PureProperty index series, which provides daily real estate price and total returns at the level of both property and equity investments. The index series' values are inferred from price appreciation and income distributions generated by portfolios of properties owned by listed US equity REITs.

    Values .......

    News Round-up 2 June 2015

  • CMBS upgrades turn the corner

    The annual number of upgrades among S&P-rated North American CMBS exceeded the number of downgrades in 2014 for the first time since 2007. The upgrade-to-downgrade ratio reached 1.28, which is up from 0.79 in 2013.

    In total, of the North American CMBS ratings that were outstanding at the beginning of 2014, S&P lowered 244 during the year and raised 312. .......

    News Round-up 2 June 2015

  • CMBS delinquencies brake sharply

    The Trepp US CMBS delinquency rate dropped dramatically in May after six months of hovering within a 23bp band. From the start of 2015 through April, the rate inched down from 5.66% to 5.57%, but the delinquency rate for US CRE loans in CMBS is now at 5.4% in May and down by 17bp.

    In the last 25 months, the delinquency rate .......

    News Round-up 2 June 2015

  • Euro ABS/MBS searches for direction

    With low levels of activity and spreads range-bound the European ABS/MBS secondary market is looking to new issuance for a direction.

    "Yesterday was very slow with most players sitting on the sidelines waiting for news on Greece," says one trader. "There is good activity in primary however and most people are looking there for some direction."

    The trader continues: "With .......

    SCIWire 2 June 2015

  • CMBS losses shift up

    Trepp reports that 105 US CMBS loans totalling US$1.25bn were liquidated with a loss in May, following three months of relatively few loans being disposed of with losses. However, the results were somewhat skewed by the US$80m Schron Industrial Portfolio's B-note that was written off in full, while the US$220m A-note paid off without loss.

    Another six loans totalling US$57.46m took .......

    News Round-up 1 June 2015

  • Lodging CMBS growing strong

    Trepp expects the volume of US CMBS backed by lodging assets to grow over the next several years as new loans are issued and maturing loans are refinanced. However, the sector faces several challenges, including slower global growth and a stronger US dollar, which could reduce hotel room demand in the US.

    Trepp estimates that US$11bn in lodging sector CMBS loans will mature in .......

    News Round-up 1 June 2015

  • Euro ABS/MBS stays positive

    The European ABS/MBS secondary market ended last week quietly and looks to be starting the month in a similar fashion, but market tone remains positive.

    In Friday's quiet as anticipated session core prime paper was the main focus for buying interest. The few BWICs there were, mainly revolving around UK bonds, also traded reasonably well.

    Meanwhile, peripherals seem to have .......

    SCIWire 1 June 2015
×