CMBS

  • 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

  • CMBS sub debt proliferating

    Subordinated commercial real estate loans have emerged as a compelling alternative for investors seeking higher yields while targeting specific credit opportunities. Coupled with looser underwriting standards, this has driven an increase in the volume of US CMBS 2.0 conduit loans with subordinated debt - a trend that is expected to continue.

    Of the 49 CMBS 2.0 conduit deals issued in .......

    News 23 February 2015

  • Euro secondary stays strong

    European secondary securitisation markets continue to trade well despite the Greek rollercoaster impacting other markets.

    A flurry of BWICs added to the calendar on Friday took market attention, but further strong prints were seen across deal types and jurisdictions. There has even been an upswing for some Greek RMBS names - for example, dealer quotes for GRIF 1 A have .......

    SCIWire 23 February 2015

  • CMBS metrics diverging

    New issue and legacy US CMBS metrics continue to diverge, says Fitch. New issue metrics continued to decline in 4Q14, while the metrics of legacy US CMBS improved.

    The percentage of new issue full and partial interest-only loans in Fitch-rated transactions rose by 5% last quarter. The increase was driven by an approximately 4% increase in full IO loans. In .......

    News Round-up 20 February 2015

  • CMBS best practices released

    CREFC has published new best practices addressing a variety of issues in the CMBS market. Effective immediately, the standards have been developed in conjunction with industry participants in the interest of further enhancing data consistency, transparency and efficiency across the market.

    The six new best practices include promoting the reporting of consistent and timely details by special servicers regarding loan .......

    News Round-up 20 February 2015

  • CRE performance positive

    All US CRE sectors performed well in 4Q14, according to Moody's. The agency says performance was supported by the country's economic recovery and stable inflation.

    Moody's base expected loss for conduit/fusion CMBS transactions fell to 7.6% in 4Q14 from 8.2% in 3Q14. The overall share of specially serviced conduit loans decreased by 5bp to 7.32% in 4Q14 from 7.37% in .......

    News Round-up 20 February 2015

  • Euro secondary closes quietly

    European secondary securitisation markets continue to remain insulated from broader market volatility and after a busy week look set to close it out quietly.

    BWIC activity dominated across the board yesterday with bilateral trading taking a back seat. The majority of ABS, CLOs and MBS on lists saw strong execution once more.

    Today's European auction schedule is considerably quieter with only .......

    SCIWire 20 February 2015

  • EMEA losses better US rate

    The estimated total losses from European securitisation bonds are small relative to those of the US, according to Fitch. Total losses on Fitch-rated EMEA securitisations issued from 2000 to 2014 are expected to be 0.7%, compared to 4% globally.

    Fitch says that a breakdown of the overall figures provides further evidence that securitisations have not performed as a homogenous investment .......

    News Round-up 18 February 2015

  • CMBS production strengthened

    Ted Nasca has joined Greystone as md, focusing on establishing a stronger CMBS presence for the firm in the central states through Texas. He will report to Robert Russell, head of production for Greystone's CMBS group.

    Nasca joins Greystone from Guggenheim CRE, where he was responsible for originating life company, CMBS and agency loans in the central region of the .......

    Job Swaps 18 February 2015

  • Marginal decrease in maturity defaults

    The 12-month rolling European CMBS loan maturity default rate for S&P's rated universe decreased slightly to 29.9% from 30.5%, as of end-January. However, the overall senior loan delinquency rate increased to 51.4% from 50.8%.

    The delinquency rate for continental European senior loans increased to 64.9% from 63.2% in January. The rate for UK loans decreased to 22.8% from 23.8%.

    The .......

    News Round-up 18 February 2015

  • Euro secondary remains robust

    European secondary securitisation markets are staying robust despite continuing broader volatility around Greece.

    "The ABS/MBS market is strong," confirms one trader. "The core space continues to grind tighter and it's almost impossible to buy paper - the UK and euro is extremely well bid. At the same time, peripherals are unchanged to slightly better."

    Overall, ABS/MBS flows are increasing, albeit .......

    SCIWire 18 February 2015

  • Call for comments on TRACE expansion

    The comment period on FINRA's proposal to expand TRACE trade reporting to include CMBS securities, as well as CMOs and CDOs, began last week. The proposal calls for trades to be reported 15 minutes after execution on a CUSIP basis with price information, similar to reporting for consumer ABS.

    However, only trades sized at below US$1m would be reported in .......

    News Round-up 17 February 2015

  • Euro ABS/MBS keeps calm

    As anticipated with the US holiday the European/ABS secondary market was reasonably calm yesterday and that has extended into this morning despite the news around Greece.

    "We've not seen much action since the Greek discussions collapsed," says one trader. "Overall spreads have remained pretty stable."

    The trader continues: "For the moment the market is quiet, though we're hopeful it'll take .......

    SCIWire 17 February 2015

  • Delinquencies at post-recession low

    New US CMBS delinquencies began 2015 at a post-recession low, according to Fitch's latest index results for the sector. CMBS late-pays finished January at just US$274m, down from US$554m in December and a peak of US$6.6bn in January 2010.

    Total outstanding delinquencies finished last month at US$17.9bn, down by US$517m from US$18.4bn at year-end 2014. Resolutions in January outpaced new .......

    News Round-up 16 February 2015

  • CMBS credit enhancement rising

    Declining US CMBS deal metrics in 4Q14 have set the stage for higher credit enhancement levels in 2015, according to Fitch. Last quarter saw a sizeable jump in Fitch-quoted credit enhancement for triple-A (up by 103bp) and triple-B minus (32bp) rated CMBS tranches.

    Driving Fitch's increase in CMBS credit enhancement were deals that had poorer debt service coverage ratios and .......

    News Round-up 16 February 2015

  • Peripherals take attention

    Peripheral paper is receiving increased attention in the European ABS/MBS secondary market.

    On the back of strong prints on Friday and positive market tone at today's open, prices in major name peripheral bonds edged upwards first thing this morning. Focus revolved around Greek, Italian and Portuguese paper, though the former is likely to remain highly volatile.

    At the same time, .......

    SCIWire 16 February 2015

  • Euro ABS/MBS returns to form

    After an up and down week in terms of activity the European ABS/MBS secondary markets have returned to form.

    Flows across the secondary market increased yesterday in both bilateral trades and BWICs as lists were added throughout the day. Most names saw strong trading levels and that positive tone has extended into this morning.

    The recent favourite sectors continued to .......

    SCIWire 13 February 2015

  • Short-duration trades touted

    Around €4.4bn of EMEA CMBS loans are scheduled to mature in 2015, with about half of them expected to repay at maturity. Many of these loans are large and could result in significant principal payments for senior noteholders.

    About €2.3bn of the loans maturing this year have already prepaid, but a few good quality candidates remain that are very likely .......

    News 12 February 2015

  • Valuation RFPs issued

    The US NAIC has released RFPs from vendors to produce valuations for state insurance regulators to set risk-based capital requirements for CMBS and RMBS owned by US-domiciled insurance companies. Responses to the RFPs are due on 10 March.

    Consistent with NAIC policy, the association periodically submits third-party contracts to competitive rebidding. Blackrock Solutions and PIMCO have been providing the valuations .......

    News Round-up 12 February 2015

  • CMBS default decline analysed

    Fitch says that the marginal decline of loans in default/special servicing in 4Q14 as a percentage of its rated EMEA CMBS portfolio does not signal a change in maturity trends for legacy transactions. The number of loans maturing in 2015 is small compared with those that matured in 2013 and 2014; however, the majority of loans continue to default at .......

    News Round-up 12 February 2015

  • Euro ABS/MBS dampens down

    Secondary European ABS/MBS activity has dampened down once more as participants step away amid broader market volatility.

    "Flows are again relatively light," says one trader. "There's some concern over Greece and to a lesser extent Ukraine, which is keeping things pretty static in ABS."

    Core bonds remain the main focus of the ABS/MBS market with spreads grinding ever tighter led .......

    SCIWire 12 February 2015
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