CMBS

  • Euro MBS activity winding down?

    The European MBS markets have been quiet for the last week or two. Sterling prices in particular are refusing to tighten as investors appear reluctant to pursue paper.

    "Most people have had a good year so I do not think they want to do much more before year-end," says one trader. "There was the big portfolio which traded last week .......

    Market Reports 7 November 2014

  • Consecutive declines for credit

    Aggregate hedge fund performance was nearly flat in October at negative 0.06%, marking the industry's third down month in the last four, according to eVestment. Year-to-date performance through October stands at positive 2.3%, the industry's lowest return in the first ten months of a year since 2011.

    Last month saw a wide distribution of returns across the industry, illustrating very .......

    News Round-up 7 November 2014

  • Construction financing risks examined

    The recent sale of US$1.6bn 3 WTC Liberty Bonds to finance construction of 3 World Trade Center provides an illustrative example of the credit factors that market participants should consider when evaluating commercial property construction financing, Moody's suggests. The agency says that such considerations are critical as the pace of construction accelerates with the improving economy and as the commercial .......

    News Round-up 7 November 2014

  • No news is good news for euro ABS/MBS

    The European ABS/MBS has taken the lack of any further ABSPP details from the ECB yesterday in its stride.

    "Draghi mentioned ABS enough times to alleviate any concerns that the ABSPP would not happen at all," says one trader. "Even the optimists who expected a buying timeframe to be announced yesterday have taken their disappointment well."

    Consequently spreads have remained .......

    SCIWire 7 November 2014

  • Portfolio manager appointed

    Malay Bansal has joined BNY Mellon Investment Management as senior portfolio manager in New York, where he is involved with a partnership with IH Capital to build a CMBS business. Bansal arrives after over two years spent as a senior director at Freddie Mac's multifamily group. He held various roles in the past at Bloomberg, Capital Fusion Partners, NewOak Capital .......

    Job Swaps 6 November 2014

  • Evolution theory

    SFR securitisation to remain a viable asset class?

    The single-family rental securitisation market has seen six different sponsors issue 11 transactions for a total of US$6.14bn in its first year. Such volume suggests that the sector is becoming a viable asset class, yet doubts remain about its longevity since it is contingent on the ability to source cheap properties.

    The majority of SFR deals have so far been .......

    News Analysis 6 November 2014

  • Colony merger mooted

    Colony Financial (CLNY) and Colony Capital have reached a non-binding agreement in principle for the potential contribution to CLNY of all of Colony Capital's real estate and investment management businesses and operations. The combined company will be led by executive chairman Thomas Barrack and ceo Richard Saltzman, while employing the full management and investment team of Colony Capital.

    The agreement .......

    Job Swaps 6 November 2014

  • Spin-offs reduce bargaining power

    Traditional in-line mall tenants are increasingly relocating outlets from second-tier malls into dominant, open-air shopping centres, according to Fitch. This developing trend could weaken the credit profiles of retail REIT landlords with sizeable second-tier mall holdings, such as Washington Prime Group (WPG) and CBL & Associates.

    The weak performance of key retail anchor tenants, such as Sears and JC Penney, .......

    News Round-up 6 November 2014

  • European ABS/MBS stay firm

    The European ABS/MBS markets are staying firm ahead of the ECB press conference this afternoon at 14:30 CET.

    Spreads have tightened a little across euro-denominated ABS/MBS deal types over the last few days and into this morning. At the same time, a buying bias in UK CMBS and RMBS emerged yesterday and today.

    The moves are primarily driven by the .......

    SCIWire 6 November 2014

  • Loss severity declines

    Average US CMBS loss severity measured 45.56% in October, according to Trepp, down from 55.69% in September. Of the loans that were liquidated, 72% by balance fell into the greater than 2% loss severity category, down from 88% last month.

    October loss severity was below the 12-month moving average of 49.27% and just above the 44.29% average since January 2010. .......

    News Round-up 6 November 2014

  • Lodging collateral above peak

    US CMBS underwriting standards have progressively weakened throughout 2014 amid increased competition among loan originators, according to S&P. Within the most recently priced deals, lodging collateral - which the agency believes is relatively riskier than other common collateral types - continues to run not only well above historical averages, but also above that of peak issuance years.

    In addition, S&P .......

    News Round-up 5 November 2014

  • Euro ABS/MBS waits on

    Amid light secondary flows this week into today European ABS/MBS spreads have stayed steady as the market awaits the start of the ABSPP. Meanwhile, a BWIC due to trade this afternoon should give the latest indication of the basis between eligible and non-eligible bonds.

    "The market is expecting the ABSPP to start in the next one to two weeks," says .......

    SCIWire 5 November 2014

  • Eurozone deflation would have mixed impact

    A deflationary eurozone environment would have a moderate overall impact on EMEA structured finance, with weaker borrowers under earnings pressure and those facing refinancing risk most exposed, according to Fitch. CMBS could face the greatest downgrade pressure under deflation, with falling nominal rents combining with a spike in maturities in 2015/2016 under this scenario. However, accommodative monetary policy should mitigate .......

    News Round-up 4 November 2014

  • Delinquency rate moves up

    Trepp's US CMBS delinquency rate moved up by 11bp to 6.14% in October, which is the highest rate increase in the past two years. The last time the delinquency rate posted a larger gain was in July 2012, when the delinquency rate rose by 18bp. While the trend in delinquencies has become less consistent, October's reading is 184bp lower than .......

    News Round-up 4 November 2014

  • CMBS steady to start week

    It was a quiet start to the week for most markets, although US CMBS BWIC volume once more pushed US$150m. A US$120m list of legacy floater bonds was also pre-announced and is due to trade this morning, US-time.

    SCI's PriceABS data captured 19 unique US CMBS tranches from yesterday's session, with a mix of pre- and post-crisis names .......

    Market Reports 4 November 2014

  • NHP disposal agreed

    A binding sale and purchase agreement has been executed in respect of the sale of all of the subsidiaries of the Titan Europe 2007-1 (NHP) borrower, through the sale of all of the shares of NHP Holdco 1 to a bid vehicle backed by Formation Capital. The move follows the special servicer's determination that implementing a sale of these subsidiaries .......

    News Round-up 4 November 2014

  • Default rate inches lower

    Fitch's quarterly US fixed-rate CMBS cumulative default rate dropped slightly to 13.4%, compared to 13.5% in 2Q14, due to relatively stable defaults and strong new issuance levels. In 3Q14, 77 loans totalling US$1.11bn were newly defaulted - an increase from 68 loans (US$974m) in 2Q14, but down from 93 loans (US$1.13bn) in 3Q13. Twelve loans had an original balance over .......

    News Round-up 3 November 2014

  • Special situations group bolstered

    David Ruiz has joined Deutsche Bank's CRE special situations group as a director, where he will report to the group's head Charles Blackburn. Ruiz was previously a partner at Serone Capital Management, where he focused on diversified investment credit strategies, including distressed credit, structured credit and corporate high yield.

    .......

    Job Swaps 3 November 2014

  • US CMBS looks ahead

    The US CMBS market is seeing a flurry of activity today after a quiet week, but attention is already shifting to next week's big BWIC.

    "It's been a very quiet week, but it's a little busier today with quite a few BWICs coming out," says one trader. "There doesn't seem to be an obvious driver other than perhaps a stronger .......

    SCIWire 31 October 2014

  • Risk retention to have mixed impact

    Risk retention regulations that were approved last week by US federal regulators (SCI 22 October) will be credit positive for non-agency RMBS, according to Moody's. The impact on CLOs, on the other hand, is expected to be credit neutral.

    The rules generally require sponsors to retain 5% of the risk in most types of securitisations for the life of the .......

    News Round-up 31 October 2014

  • Peripherals firmer

    Positive ABSPP news has driven buying of peripheral ABS/MBS, but core paper is mixed.

    Following the ECB announcement of four asset managers and a November start for ABSPP, eligible peripheral ABS/MBS spreads firmed up yesterday and into this morning. Equally, interest and activity around select non-eligible peripheral names has seen them tighten as well.

    In core bonds the picture is more .......

    SCIWire 31 October 2014
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