CMBS

  • 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

  • Euro ABS/MBS BWICs trade well

    Yesterday saw another active day in European ABS/MBS BWICs with almost all line items trading well.

    "There were a lot of BWICs yesterday and everything traded well, with the big blocks of EPICP DRUM A and WINDM XIV-X B a particular highlight," one trader says. "At the same time, UK non-conforming is feeling softer but the BWIC execution levels of .......

    SCIWire 23 April 2015

  • Sprawling landscape

    SFR securitisation expands with multi-borrower option

    B2R Finance and FirstKey Lending this month became the first sponsors to launch multi-borrower single family rental (SFR) securitisations (SCI passim). A number of key structural differences relative to single-borrower transactions have left investors weighing the costs and benefits of the two deal types.

    The US$230m B2R Mortgage Trust 2015-1 was the first multi-borrower SFR securitisation to hit the market, .......

    News Analysis 23 April 2015

  • Stepping out

    European CMBS breaks new ground

    New European CMBS deals are increasingly deviating from the cookie-cutter mould established in the market's post-crisis revival. Both deal structures and collateral are branching out.

    "European CMBS is becoming more diverse. People are hunting for yield and looking for new ways to structure deals," says Jonathan Banks, director, Mount Street.

    An example currently in the market is RBS' £175m Antares .......

    News Analysis 23 April 2015

  • Foreclosure timelines plateau

    The average amount of time it took to liquidate a distressed US mortgage loan rose again in 1Q15 to 42 months, according to Fitch's latest index report. However, while timelines on liquidated loans continue to increase, there are signs that the pace may soon begin to slow.

    Among loans still in foreclosure, the average amount of time since making a .......

    News Round-up 22 April 2015

  • Conduit credit quality weakening

    The credit quality of loans in US CMBS conduits is continuing to weaken, says Moody's. Conduit loan leverage as measured by Moody's LTV (MLTV) is increasing steadily and is now at 117.1%, only marginally below its pre-crisis peak of 117.5%.

    The credit enhancement level on super senior Aaa has consistently been at the 30% mark, but the average cushion between .......

    News Round-up 22 April 2015

  • EMEA CMBS stabilising

    EMEA CMBS performance stabilised in 1Q15 as CRE loans past their original maturities have remained flat since 4Q14, at just above 63%, says Fitch. Similarly, the number of loans in special servicing increased only slightly.

    The agency notes that two loans matured last quarter without being repaid. DECO 14's Cottbus Shopping Centre entered special servicing, while Hercules (Eclipse 2006-4)'s Cannon .......

    News Round-up 22 April 2015

  • Europe focuses on BWICs

    Quiet bilateral activity and consequently static spreads are increasing European secondary market focus on BWICs.

    "It's generally pretty static," says one trader. "Greek paper is still drifting downwards but that's pretty much it on light flows."

    The trader continues: "The primary market continues to be active, but it's not having any impact on secondary. A new issue premium is in .......

    SCIWire 22 April 2015

  • Prepayment error for 2.0 loan?

    The latest trustee report for DBUBS 2011-LC1 shows that the US$55.3m Rookwood Commons loan has prepaid in full without penalty. Morgan Stanley CMBS strategists suggest that this may be an error, since prepayment prior to 1 May is only permitted with the greater of yield maintenance and 1%.

    The loan has never been delinquent, but was on the servicer watchlist, .......

    News Round-up 22 April 2015

  • Positive tone in US MBS

    Despite macro issues the tone in the US MBS secondary markets remains positive.

    "There continues to noise about Greece and so on, but when you bring it down to the sector level it feels pretty risk on right now", says one trader. "You only have to look at the primary market - there's just been a CMBS conduit price tight .......

    SCIWire 21 April 2015

  • ABS franchise strengthened

    SG has hired Daniel McGarvey and a team of senior ABS bankers from RBS. McGarvey will manage an expanded team of ABS and CMBS professionals with the objective of building a US ABS franchise, both in mortgage and non-mortgage ABS segments.

    McGarvey most recently headed RBS's non-mortgage ABS business. Prior to this, he marketed, structured and executed term ABS distribution .......

    Job Swaps 21 April 2015

  • CMBS originator recruited

    Greystone has hired Steve Cho as md. Reporting to Robert Russell, head of production for Greystone's CMBS group, he will focus on building the firm's CMBS presence in the central US states through Texas.

    Prior to joining Greystone, Cho was md at RBS and the bank's sole CMBS originator in the US central region. Before that, he worked in the .......

    Job Swaps 21 April 2015

  • Euro ABS/MBS holds up

    The European ABS/MBS secondary market was very quiet again yesterday and into this morning, but spreads are holding up.

    Activity varies by sector, according to one trader. "Most of the activity in prime over the last few days has been around small size BWICs, which have traded well including some Italian bonds."

    Away from BWICs, the trader adds: "We saw .......

    SCIWire 21 April 2015

  • Two-tone CMBS

    SASB popularity grows as conduit concerns continue

    With around US$14bn of new issuance hitting the market last quarter, the single-asset/single-borrower (SASB) sector appears to be the sweet spot in US CMBS at present. In the conduit sector, meanwhile, deteriorating underwriting standards and the ratings impasse continue to concern investors.

    The recent SASB issuance spike is being driven by low interest rates and the desire to lock in .......

    News Analysis 20 April 2015

  • Loan terms examined

    Of the over 12,000 loans outstanding in Fitch-rated US CMBS transactions issued since 2010, approximately 65% of the loans were issued with 10-year terms, according to the agency. In contrast, approximately 8% of the outstanding universe were issued with loan terms of five years or less.

    Fitch-rated deals issued between 2010 and 2015 include 875 five-year loans and 8,157 10-year .......

    News Round-up 20 April 2015
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