CMBS

  • Europe stays quiet

    Ahead of the ECB meeting and Greek general election European secondary markets have, as expected, remained for the most part quiet through yesterday and into today.

    Yesterday's BWICs all traded with reasonable participation, but again today the schedule is limited, with only a three line Granite mezz list and a 100,000 piece of Arkle in the ABS/MBS space currently doing .......

    SCIWire 20 January 2015

  • CMBS defeasance proliferates

    Defeasances in Fitch-rated US CMBS reached US$5.3bn in 4Q14, as borrowers took advantage of low interest rates. The 4Q14 defeasance volume brings the total in Fitch-rated deals to US$18.7bn, or nearly 5% of Fitch's total outstanding rated CMBS universe. Of this number, US$9.6bn (51%) will mature or have an expected final defeasance payment in 2015, US$5.4bn (29%) in 2016, US$2.3bn .......

    News Round-up 19 January 2015

  • Tesco CMBS lowered

    S&P has lowered to double-B plus from triple-B minus all seven of the UK CMBS transactions that are credit-linked to Tesco. The ratings have all also been removed from creditwatch negative.

    The agency's ratings on these notes are credit-linked to its long-term double-B plus corporate credit rating on Tesco. Therefore, any change to S&P's rating on Tesco affects its ratings .......

    News Round-up 19 January 2015

  • 'CMBS-like' deal debuts

    Gatehouse Bank has launched what it describes as a CMBS-like structure, which will be known as a commercial rental-backed security (CRBS). In this transaction, Gatehouse will act as sole structuring agent, arranger and lead manager to an acquisition facility relating to a commercial office property in the Paris region, worth over €100m.

    The two-tranche fixed rate certificates will be backed .......

    News Round-up 19 January 2015

  • Europe awaits ECB again

    European secondary spreads ground tighter into the end of last week amid positive sentiment and lighter volumes than of late. This week looks set to continue that direction and pattern of activity, especially given the US holiday today and anticipation of a QE announcement from the ECB on Thursday.

    The European BWIC schedule for today currently stands at two mixed .......

    SCIWire 19 January 2015

  • CMBS defaults, delinquencies differ

    The 12-month-rolling loan maturity default rate for European CMBS increased to 30.5% from 29.5% at the close of December 2014, according to S&P. This is due to the decrease in loans that were not in default in the 12-month-rolling period versus the previous month.

    In addition, the delinquency rate for continental European senior loans decreased slightly to 63.2% from 63.9%, .......

    News Round-up 16 January 2015

  • Euro ABS/MBS stays positive

    The European ABS/MBS secondary markets are staying positive in terms of both tone and price levels as the week draws to a close.

    Strong execution across yesterday's BWICs combined with increased buy-side participation off-BWIC has kept market sentiment positive and spreads have continued to tighten. The greatest beneficiaries continue to be autos, Dutch Prime RMBS and UK non-conforming RMBS.

    CMBS .......

    SCIWire 16 January 2015

  • Socially secured

    An innovative real asset transaction backed by German care homes is currently in the private placement phase. Dubbed German Care Homes Fund, the vehicle aims to provide attractive returns at low risk, given that it is indirectly secured by the German social security system.

    Three structural variations are currently under consideration: a SICAV-SIF vehicle, a JV holding or a securitisation .......

    News 16 January 2015

  • CMBS supply rises, spreads widen

    US CMBS BWIC volume hit US$400m yesterday in a busy session as spreads widened out. SCI's PriceABS data picked up more than 60 unique US CMBS tranches out for the bid from a variety of vintages.

    A very high proportion of the available paper was covered yesterday. This included the 2004-vintage JPMCC 2004-CB8 J tranche, which .......

    Market Reports 15 January 2015

  • Back to business in European secondary

    The European ABS, CLO and MBS secondary markets have finally fully returned to normality on- and off-BWIC.

    "It's back to business as usual," confirms one trader. "Focus is away from any potential QE announcement next week and there is an acceptance that ABSPP is underwhelming and it's very difficult to trade with the ECB on that - so it's just .......

    SCIWire 15 January 2015

  • US CMBS secondary suffers

    The US non-agency CMBS market has returned from its annual conference focused on the primary market and away from secondary trading.

    "The conference mood overall was very positive and loan originators are very bullish," says one trader. "It really feels like we're back to 2005/6 in terms of new issuance."

    The trader continues: "The first new issue deals of the .......

    SCIWire 14 January 2015

  • Euro BWICs build but flow patchy

    The European ABS, MBS and CLO BWIC schedule is building up a head of steam this week, but flow trading is still intermittent.

    "We saw a few more BWICs yesterday and there was strong execution across deal types - not just prime RMBS, but also in UK non-conforming, CLOs and CMBS," says one trader. "There are more BWICs scheduled today, .......

    SCIWire 14 January 2015

  • Store closures prompt performance concerns

    JC Penney and Macy's have disclosed that they will respectively close 39 and 14 stores this year, including 15 properties backing US$479m of CMBS loans. Certain property closures could accelerate the performance divergence between dominant class A malls and inferior malls.

    Barclays Capital CMBS analysts note that four malls losing JCP as an anchor tenant are represented in 2011 and 2012 .......

    News 13 January 2015

  • Lower loss severities continue

    The amount of US CMBS loans disposed with a loss in December stayed consistent month-over-month in that it remained lower than average, Trepp reports. The total disposed loan balance registered US$670m last month, down slightly from November's US$676.4m, with loss severities standing at 50.26% (versus November's 56.84%).

    The loss list was headlined by the US$80.5m Pier at Caesars loan securitised .......

    News Round-up 13 January 2015

  • European ABS/MBS better supported

    As activity levels slowly increase in European ABS/MBS investor appetite appears to be holding up.

    "Activity levels are again a bit better today," says one trader. "There are a few BWICs scheduled for this afternoon and the pipeline is building, but secondary is active this morning and the market is a little bit better supported."

    Even previously dormant sectors are .......

    SCIWire 13 January 2015

  • ABSPP underwhelms again

    The ECB's latest ABSPP number is likely to underwhelm the market once again.

    The ECB has confirmed that the total outstanding amount under ABSPP at 9 January was €1,792m. Meaning that last week saw a net settled volume of €48m, which is likely to further shift traders' focus away from ABSPP and build further anticipation around broader QE and hoped .......

    SCIWire 12 January 2015

  • CMBS resolutions outpace delinquencies

    US CMBS delinquencies finished 2014 at US$18.4bn, down US$5.4bn from US$23.8bn at year-end 2013, according to Fitch's latest index results for the sector. The overall delinquency rate finished the year at 4.62%, only 2bp lower than the previous month, but a 136bp drop from 5.98% one year ago.

    Overall, resolutions in 2014 outpaced new delinquencies by nearly 2:1. Resolutions ended .......

    News Round-up 12 January 2015

  • Tesco CMBS hit

    Moody's has downgraded from Baa3 to Ba1 the ratings of seven classes of notes issued by Tesco-linked CMBS. Approximately £3.89bn of debt (initial outstanding) is impacted by the move.

    The affected transactions are Delamare Finance and Tesco Property Finance 1-6. The move reflects Moody's downgrade from Baa3 to Ba1 of the long-term senior unsecured rating of Tesco. The CMBS are .......

    News Round-up 12 January 2015

  • CRE prices, employment correlated

    The recent increase in US commercial property prices closely corresponds to the national increase in employment, with the strength of the price-employment relationship lasting for over a decade, according to the latest Moody's/RCA Commercial Property Price Indices (CPPI) national all-property composite index. This correlation is also strong in the six metro areas that Moody's designates 'major', although the closeness of .......

    News Round-up 12 January 2015

  • CMBS pay-offs plunge

    The percentage of US CMBS loans paying off on their balloon date plunged in December to 49.6%, according to Trepp. The latest reading is 26 points lower than the November rate of 75.6% and is the lowest reading since July 2012.

    "A downward trend in the rate in 2015 would not be all that surprising," the firm notes. "Most of .......

    News Round-up 12 January 2015

  • SFR methodology clarified

    Moody's has finalised its methodology for rating single-family rental (SFR) securitisations in the US, following a request for comment on its approach to single-borrower and multi-borrower transactions in the sector (SCI 7 March 2014). The report clarifies certain aspects of the RFC.

    "In the RFC, we mentioned that there could be variations if the SFR transaction included more than one .......

    News Round-up 12 January 2015
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