CMBS

  • BWIC composition changes analysed

    With the growth of US CMBS supply over the last five years, secondary activity has transitioned from being dominated by legacy conduit paper into a more even mix of post-crisis conduit, agency and single-asset/borrower bonds. So far this year, 40% of BWICs have been concentrated in legacy conduit paper, 22% in post-crisis conduit bonds and 38% in other deal types, .......

    News Round-up 6 March 2015

  • More of the same for European ABS/MBS

    Yesterday saw another positive but quiet day in the European ABS/MBS secondary market as broader credit was boosted by the ECB's QE announcement.

    Trading continued to be slow yesterday and into this morning, but remains strong in still patchy activity around the usual key areas of prime, UK non-conforming and selected peripheral paper. However, there was some softening in German .......

    SCIWire 6 March 2015

  • Refinancing target missed

    The second refinancing instalment of the restructured Dutch CMBS transaction Leo-Mesdag, due last month, was missed. While the CMBS classes are not expected to face principal losses, it does appear that the sponsor will struggle to meet its refinancing business plan.

    The CMBS was restructured last year (see SCI's CMBS loan events database) and exceeded its .......

    News 5 March 2015

  • Ratings-driven tiering continues

    The pricing of two US CMBS on the same day last month indicates continued investor sensitivity to which rating agencies are rating bonds across the CMBS 2.0 capital structure. Indeed, a recent Morgan Stanley analysis finds that CMBS 2.0 LCF triple-A bonds that are rated by both Moody's and Fitch are pricing nearly 3bp tighter on average than those that .......

    News 5 March 2015

  • CRE vet hired

    John Scheurer has joined American Capital as md and cio for its CRE group, where he will be responsible for developing a CRE platform alongside md Doug Cooper and the existing CRE group. American Capital may fund its CRE investments by incubating a commercial mortgage REIT, which it would manage.

    Prior to joining American Capital, Scheurer was president and ceo .......

    Job Swaps 5 March 2015

  • Euro secondary ticks over

    European secondary markets are quiet, but activity is still ticking over.

    "Secondary is reasonably quiet, but we are getting stuff done particularly around peripherals and non-conforming plus a little in CLOs," says one trader. "There's not much on BWICs again today, though there are some RMAC equity residuals later in the day, which might be quite interesting."

    The drop-off in .......

    SCIWire 5 March 2015

  • US CMBS tightens

    US non-agency CMBS spreads are edging tighter this week.

    "It's already been a pretty heavy primary and BWIC schedule this week," says one trader. "On the back of that and continuing positive market tone spreads are grinding a little bit tighter."

    The trader continues: "BWICs this week have traded well, but nothing has really changed - the market focus is .......

    SCIWire 4 March 2015

  • CMBS delinquency rate plummeting

    The Trepp US CMBS delinquency rate has fallen for the fourth straight month and the twentieth time in the last two years. The delinquency rate now stands at 5.58%, down by 8bp for February and 120bp from a year ago.

    CMBS loans that were previously delinquent but paid off either at par or with a loss totalled about US$550m in .......

    News Round-up 4 March 2015

  • CMBS loss severity up

    Higher liquidations and losses from large 2007 vintage loans drove US CMBS loss severity to 49.1% in 2014 from 45.7% in 2013, says Moody's. Three loans in particular that are in the top-ten dollar losses to date pushed severities higher last year: World Market Center II, Solana and Hyatt Regency - Jacksonville (see SCI's CMBS loan events database). .......

    News Round-up 4 March 2015

  • Sears spin-off welcomed

    Sears provided further details in its 4Q14 earnings release of its plan to create a REIT consisting of 200-300 stores, many of which are likely to be Sears-owned anchor pads in high quality malls. Barclays Capital CMBS analysts suggest that the spin-off could be a positive for any affected CMBS properties, as it would secure Sears as a long-term anchor .......

    News Round-up 4 March 2015

  • Euro secondary sees pockets of activity

    European secondary is still quiet overall, but there are pockets of activity

    "It continues to be very quiet this week, but the few trades going through are trading quite high," says one trader. "We've seen Dutch RMBS print in the mid-teens, for example."

    Strong trading is currently mainly macro driven, the trader says. "The positive tone was helped by the .......

    SCIWire 4 March 2015

  • Defeasance hits seven-year highs

    US CMBS defeasance activity reached its highest level in 2014 since 2007, Moody's reports. The agency expects defeasances will continue to increase as borrowers take advantage of low interest rates and increased liquidity to trade in older loans for new loans.

    CMBS defeasance activity rose to US$20.9bn at end-2014, increasing by 58% year-over-year, in line with the 2005 level of .......

    News Round-up 3 March 2015

  • Euro ABS/MBS keeps support

    Spreads remain well-supported in European ABS/MBS secondary markets, but activity has declined dramatically from last week.

    "It's very, very quiet this week," says one trader. "The market is well-supported at these levels, but there's no real impetus to do anything."

    The trader continues: "ABSPP is still slowly happening - ECB announced €470m for last week, which is one of their bigger weeks, .......

    SCIWire 3 March 2015

  • Delinquency decline projected

    S&P forecasts a 50bp-100bp decline in the US CMBS delinquency rate this year, after analysing historical and distressed loan data, vintage characteristics, maturity schedules and regression testing against the national unemployment rate. Based on the 6.69% delinquency rate in December 2014, which was down by 123bp year-over-year, the agency expects the rate to be in the 5.6%-6.1% range by end-2015.

    News Round-up 2 March 2015

  • Euro secondary absorbs BWICs

    Yesterday's spike in European BWIC volume was absorbed comfortably, but today looks to be quieter.

    "The lists yesterday traded well though many bonds were in reasonably small size so it's difficult to read too much into it," Says one trader. "It's quieter today as it's a Friday, but the overall tone remains positive."

    There are only a few BWICs circulating .......

    SCIWire 27 February 2015

  • AH4R debuts structural twist

    The latest single-family rental securitisation to hit the market provides new structural features in the form of an anticipated repayment date (ARD) and a longer term than previous SFR deals. Arranged by Goldman Sachs, the U$438.8m American Homes 4 Rent 2015-SFR1 transaction is backed by a single 30-year fixed rate loan with an ARD of 10 years.

    The loan will .......

    News Round-up 26 February 2015

  • European BWIC boom

    After a quieter day on the BWIC front yesterday European securitisation markets are set for a boom in auction activity today.

    While there were fewer BWICs yesterday than in previous days clearing levels remained strong and most recently popular sectors continue to be well-bid. However, UK non-conforming RMBS have softened a little on the back of increased primary activity.

    Today .......

    SCIWire 26 February 2015

  • CMBS 2.0/3.0 watchlistings eyed

    February US CMBS remittance data indicates a significant up-tick in the number of post-crisis loans that were watchlisted by master servicers for potential performance concerns. The rise in overall new watchlistings is a sign of deteriorating performance and is worth heeding if they lead to an increase in special servicing transfers, according to Barclays Capital CMBS analysts.

    US$2.1bn of post-crisis .......

    News 26 February 2015

  • Euro ABS/MBS keeps active

    The European ABS/MBS secondary markets continue to be active across an increasing range of sectors.

    "Yesterday was busy again especially in prime, but we're seeing good two-way flows across a growing number of well-supported markets," says one trader. "That continues to involve Dutch and UK prime and Italian RMBS, but we're also seeing increased activity in UK non-conforming, where real .......

    SCIWire 25 February 2015

  • RadioShack exposure gauged

    RadioShack has outlined a list of almost 1800 stores that it intends to close due to its bankruptcy (SCI 11 February), including 191 properties across 130 US CMBS backed by 185 loans with a balance of approximately US$2.4bn. However, Barclays Capital CMBS analysts note that the allocated loan balance of the properties is US$940m, with only US$33m of the properties .......

    News Round-up 25 February 2015

  • BWICs drive European secondary

    BWICs held sway once more in European secondary markets yesterday as spreads ground ever tighter and today looks set to be similar.

    "We saw seven lists yesterday afternoon and they all traded well," says one trader. "Greece continues to dominate the broader market, but ABS remains insulated from the volatility and the tone continues to be stable and strong on .......

    SCIWire 24 February 2015
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