CMBS

  • 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

  • USDA programme boosted

    Ginnie Mae has enhanced its securitisation programme for US Department of Agriculture (USDA) Section 538 multifamily loans, allowing those with a maximum loan amount of 70% of total development costs to be eligible for pooling into Ginnie Mae MBS. This is an increase from the previous maximum loan amount of 50% of the total development costs, with the association seeking .......

    News Round-up 20 April 2015

  • Mall performance hit

    April remittances indicate that the US$50.1m Hudson Valley Mall loan, securitised in CFCRE 2011-C1, has transferred to special servicing. This represents the largest CMBS 2.0/3.0 loan to move into special servicing so far, according to Barclays Capital CMBS analysts.

    JC Penney announced in January that it would be closing its store location at the mall (see SCI's CMBS loan events .......

    News Round-up 20 April 2015

  • Euro ABS/MBS stays in range

    The European ABS/MBS secondary market stayed range-bound on Friday and opened little changed this morning.

    Broader market volatility meant that Friday saw a drop in ABS/MBS liquidity and bid-offer spreads move out. Both the Street and the buy-side were looking to sell peripheral paper weakening the tone there still further, but core assets remained firm.

    BWIC activity slowed on Friday, but .......

    SCIWire 20 April 2015

  • MBS sales pro tapped

    Joseph Bevilacqua has joined Robert Baird & Co as a director. He arrives from Stifel Financial, where he worked in institutional sales for fixed income securities, with a particular focus on RMBS. He has also held senior sales roles at firms such as Piper Jaffray, First Empire Securities and Cantor Fitzgerald.

    .......

    Job Swaps 17 April 2015

  • CMBS team reinforced

    Walker & Dunlop has added Chris Charboneau and Randy Efron to its commercial property funding team. Charboneau joins the Chicago office as svp, while Efron joins the firm's New York office as vp. Both are responsible for originating commercial financing opportunities for clients nationwide and will be reporting to Geoff Smith, md and head of originations for the firm's commercial .......

    Job Swaps 17 April 2015

  • Work-out vet poached

    Case Property Services has recruited David Balaj as director and work-out project manager, responsible for assisting clients in addressing distressed commercial real estate and CMBS loans. He joins Case as the firm increases its caseload to address the many underwater loans that are at risk of being unable to refinance upon maturity within the next 36 months.

    Balaj was previously .......

    Job Swaps 17 April 2015

  • 'Positive momentum' for Euro CRE

    DBRS expects positive momentum generated by an up-tick in investment and lending to translate into increased European CMBS issuance. However, legacy transactions are likely to continue to struggle as the slow economic recovery maintains pressure on performance.

    "Upcoming maturities are likely to put some pressure on the market as older vintage transactions roll off and either move into special servicing .......

    News Round-up 17 April 2015

  • REO properties up for bid

    Auction.com data indicates that 49 properties with US$320m in balance across 37 CMBS loans are out for the bid in late April and May. WBCMT 2006-C24 has the largest exposure to the auctions, accounting for three properties totalling US$63m, according to Barclays Capital CMBS analysts.

    The three properties are the US$18.6m Towamencin Shopping Village, the US$23.5m Park Plaza II and .......

    News Round-up 17 April 2015

  • Euro peripherals weaken

    Concerns over Greece have finally fed into the European ABS/MBS secondary market.

    Amid a short spike in activity on- and off-BWIC yesterday the bulk of peripheral bonds saw a weaker tone. Greek assets inevitably led the way with GRIF 1 A dropping two points before recovering by a half to close in the 65 area.

    Portuguese and Spanish spreads have also .......

    SCIWire 17 April 2015

  • Freddie beefs up

    Freddie Mac has appointed Anil Hinduja as evp and chief enterprise risk officer, responsible for providing the overall leadership and direction for the company's enterprise risk management division. The GSE has also named David Leopold vp of affordable housing production for the multifamily business.

    Hinduja reports to Freddie Mac ceo Donald Layton and will serve on the company's senior operating .......

    Job Swaps 16 April 2015

  • Korean ratings window widened

    Moody's says that Korean cross-border structured finance transactions can now achieve triple-A ratings if they benefit from external enhancement mechanisms that cover currency transfer and convertibility risks. This follows the agency's raising of Korea's local currency country risk ceiling to triple-A, although Korea's foreign currency bond ceiling remains at Aa1.

    Moody's explains that Korean structured finance transactions will in general .......

    News Round-up 16 April 2015

  • Prime focus for European ABS/MBS

    The European ABS/MBS secondary market continues to be reasonably active with prime paper being the main focus.

    "Overall, the market remains quite positive and flows are picking up," says one trader. "They are still mainly concentrated in the prime segment where spreads are unchanged but there is plenty of activity with real money participating."

    In contrast, the trader says: "UK .......

    SCIWire 16 April 2015

  • Rate hikes to trouble CMBS, RMBS

    Faster increases in interest rate rises by the US Fed and a corresponding shock to the economy would likely leave most US structured finance (SF) ratings untouched, according to Fitch. However, it could slow the refinancings that will be crucial to the CMBS market and could hurt some RMBS deals that include legacy adjustable-rate mortgages.

    Fitch expects the Fed's actual .......

    News Round-up 15 April 2015

  • Euro ABS/MBS ticks over

    Dynamics in the European ABS/MBS secondary market remain unchanged as it continues to tick over.

    "We've been pretty busy over the last few days with the usual dynamics in evidence," says one trader. "Tone seems OK, the ECB is chugging along albeit at a slow pace and a few BWICs are going through."

    Consequently, spreads remain range-bound. "A fair amount .......

    SCIWire 15 April 2015

  • February liquidations hit

    April US CMBS remittances indicate that five loans totalling US$77.6m in balance have been liquidated from the MLCFC 2007-7 trust. The loans were previously listed for sale on Auction.com in February (SCI 4 February) and, together with an additional two properties from the US$15.5m Norcross Industrial Portfolio, generated US$62.2m in proceeds. This compares with a combined appraisal value of US$63.2m.

    News Round-up 15 April 2015

  • CMBS defaults at six-year low

    Fitch says that new US CMBS defaults continued a trend of declines, with the annual default rate falling to 0.6% in 2014 from 0.9% in 2013, a level not seen since 2008. The agency projects new CMBS term defaults to hold steady this year, with the cumulative CMBS default rate - currently at 13.3% - to decline slightly in 2015.

    News Round-up 14 April 2015

  • Walgreens lease expiries eyed

    Walgreens Boots Alliance plans to close 200 drugstores in the US, under a US$500m cost-cutting measure. The retailer is believed to be a tenant in 401 properties encumbered by 249 CMBS 2.0 loans with an allocated balance of US$1.5bn across 105 deals.

    US$383m of the exposure is concentrated in 2013-vintage deals and US$378m in 2015-vintage deals, according to Morgan Stanley .......

    News Round-up 14 April 2015

  • Sears JV exposure gauged

    Sears is set to form another real estate joint venture, with Simon Property Group (SCI 7 April), involving 10 properties valued at US$228m. Under the transaction, the retailer will receive US$114m and a 50% interest in the JV, while SPG will contribute US$114m in cash for its 50% interest and separately agreed to acquire a Sears property at the La .......

    News Round-up 14 April 2015

  • Euro ABS/MBS static

    The European ABS/MBS secondary market remains quiet but well-supported.

    "Secondary ABS/MBS is still static and very quiet post-Easter," says one trader. "Levels are pretty much unchanged and despite the Street feeling long they appear well-supported."

    The primary market is also dragging attention away from secondary trading. "There is a lot of investor interest focused on new issues including the latest .......

    SCIWire 14 April 2015

  • CMBS pay-offs fluctuating

    Trepp says the percentage of US CMBS loans paying off on their balloon date increased in March to 64.8% from the February rate of 59.5%. The March rate is slightly below the 12-month moving average of 65.4%. The highest rate in the last five years was in November 2013, when pay-offs totalled 81.3%.

    By loan count as opposed to balance, .......

    News Round-up 13 April 2015
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