CMBS

  • CMBS supply stays steady

    US CMBS BWIC volume climbed a little yesterday to just over US$320m. CMBS 2.0 and 3.0 double-As widened slightly, with other levels remaining largely unchanged. Vintages on offer ranged from 2002 to 2013.

    SCI's PriceABS data captured a lot of price talk for the session, as well as successful covers. One tranche to be covered was also from .......

    Market Reports 9 October 2014

  • Areas for improvement remain

    There are many favourable aspects to the general health of the US CMBS sector, but some areas could still be improved, Fitch says. This is according to its US CMBS progress report, the first in a series that the agency plans to publish globally, discussing significant changes a sector has undergone since the financial crisis.

    Underwriting declines have been in .......

    News Round-up 8 October 2014

  • Sears exposure tallied

    Morningstar estimates that about US$373.3m in loans across nine US CMBS could potentially be affected by Sears' most recently announced store closures. The effect on more recent CMBS deals is expected to be minimal, but three malls backing pre-2010 loans will face increased default risk, as these loans are already on the Morningstar watchlist for performance issues.

    Sears is closing .......

    News Round-up 8 October 2014

  • Agency vet joins originator

    American Financial Resources has hired Timothy Yanoti as president and appointed him as a board member. He will assist with the mortgage originator's overall strategy, strategic partnerships and regulatory oversight.

    Yanoti was previously at Fannie Mae, where he was head of securitisation and worked on the common securitisation platform. He has also served as head of global securitisation for GE .......

    Job Swaps 8 October 2014

  • Downgrades expected on sovereign update

    S&P has updated its methodology for rating single-jurisdiction securitisation tranches above the underlying sovereign rating, following a year-long consultation process (SCI 15 October 2013). The main change from the previous criteria is the reduction of the maximum rating differential between securitisations and sovereign to four notches from six notches, unless the tranches meet certain conditions based on structural features and .......

    News Round-up 7 October 2014

  • Call to revisit PACE provisions

    US CMBS loan documents currently do not have explicit prohibitions barring borrowers from taking out property-assessed clean energy (PACE) loans without the lender's prior consent. Moody's suggests that this could negatively affect the credit profile of the property, given the risks posed by PACE loans.

    "PACE loans can materially increase a loan's leverage and risk profile," says Moody's svp Daniel .......

    News Round-up 7 October 2014

  • Portuguese RMBS flash BWIC circulating

    A BWIC of €12.5m of Portuguese RMBS ATLAM 2 A has begun circulating for trade at 17:00 London today. The bond hasn't traded on PriceABS before and price talk is yet to be seen for this auction.

    Elsewhere, aside from some patchy bilateral trading the European markets have stayed quiet today, as is the case with US ABS, CMBS and .......

    SCIWire 6 October 2014

  • Servicer workloads increasing

    The workload of European CMBS servicers has increased significantly so far in 2014, with around half of the loans maturing in 2013 and 2014 still awaiting resolution, according to Fitch's latest EMEA commercial mortgage market index report. Although the number of loans being watchlisted has begun to slow down, the agency expects that most loans will require special servicer intervention .......

    News Round-up 6 October 2014

  • Euro ABS settles down

    European ABS and MBS secondary markets have started to settle down this morning after the heightened activity seen last week.

    "It's been quiet this morning - we've only done a few trades," says one trader. "It looks like following on from the price movements around the ECB last week the market is settling down and looking through every detail of .......

    SCIWire 6 October 2014

  • Peripherals trade strongly

    The majority of both peripheral BWIC lists today traded at or above talk and covers were high on two bonds that DNT.

    Three of the bonds traded with prices on the 13:30 €40m list, covering as follows: AEOLO 1 A at 94.46, GRIF 1 A at 90.02 and TDAC 1 B at 94.55. CORDR 2 C was just reported to .......

    SCIWire 3 October 2014

  • RMBS seniors up after ECB update

    The market has reacted cautiously to yesterday's ABSPP update from the ECB. Peripheral RMBS has been most active, although the CMBS market is quiet.

    "Most of the activity over the last 24 hours or so has been in Spanish and Italian RMBS. Really people are looking to get whatever Spanish and Italian paper they can, but mainly that has been .......

    Market Reports 3 October 2014

  • Liquidations drive losses higher

    Average US CMBS loss severity measured 55.69% in September, up from 37.56% in August, according to Trepp. Loss severity was almost seven percentage points higher than the 48.83% 12-month moving average and 11 points above the 44.27% average since January 2010.

    Liquidated loan volume was almost double August's US$994m and triple July's lull of US$605.47m. Of the loans that were .......

    News Round-up 3 October 2014

  • Colony IV returns to special servicing

    Fitch reports that the modified US$56.8m Colony IV A-note (securitised in JPMCC 2006-LDP9) has been transferred to special servicing, but Barclays Capital CMBS analysts believe the entire US$144m Colony IV portfolio has been moved into special servicing, based on cross-default and modification terms. Together with the A-note, the portfolio comprises a US$37.5m B-note and US$49.8m C-note, which modified in 2012 .......

    News Round-up 3 October 2014

  • Post-ECB peripheral test

    Yesterday saw spread volatility across peripheral secondary markets surrounding the ECB meeting, but two BWICs circulating today will provide a clearer test of investor demand after the ABSPP announcement.

    Peripheral ABS spreads compressed across the board in the run up to the ECB meeting, but afterwards there were diverse intra-market, -country and even -deal moves leaving Spanish seniors the winners .......

    SCIWire 3 October 2014

  • SF impairments hit post-crisis low

    The global structured finance 2013 new impairment count declined to 1,138 from 2,189 in 2012, according to Moody's. This marks the lowest number of new impairments observed since 2007.

    Moody's findings are based on ratings, impairment and loss information for over 72,000 global structured finance tranches from roughly 11,500 deals. "The performance of structured finance securities, as measured by impairment .......

    News Round-up 2 October 2014

  • Repeat loan trends examined

    DBRS has identified a sample of approximately 3,700 US CMBS properties that were collateral for loans that have been securitised in multiple transactions over the past 20 years. Based on the data available from these repeat loans, the agency compared leverage trends and other financial metrics for CMBS loans through time.

    Broadly the results show that since the near collapse .......

    News Round-up 2 October 2014

  • CMBS delinquency rate slides

    The Trepp US CMBS delinquency rate fell by 7bp in September to 6.03% and is now 211bp lower than the year-ago level. Year-to-date delinquencies have fallen by 140bp from 7.43%, as of 31 December 2013.

    Loans that became delinquent totalled almost US$1.4bn in September, putting 26bp of upward pressure on the delinquency rate. The largest loan that became delinquent during .......

    News Round-up 2 October 2014

  • Junior loan transfer proposed

    Freddie Mac is proposing to amend the intercreditor agreements for six of its CMBS to enable it to sell its interests in the trusts' junior loans to a depositor, which in turn will securitise the assets and issue CMBS notes. The affected transactions are FREMF 2010-K7, 2011-K702, 2011-K703, 2011-K704, 2012-K706 and 2012-K707.

    The proposed omnibus amendment to the definition of .......

    News Round-up 1 October 2014

  • Servicer branches out

    Situs has appointed Tim Keast as executive md, based in the firm's European headquarters in London. Working with Situs coo Bruce Nelson, Keast will be responsible for the expansion of the firm's traditional services beyond commercial real estate to include other asset classes, such as residential, consumer, SME and other structured finance debt.

    In his new role, Keast will assist .......

    Job Swaps 1 October 2014

  • Quelle case resolved

    The High Court in London has issued a judgment against Colliers International (UK) over its negligent valuation of a property in a test case that is expected to have major implications for the CMBS market. The case was brought by Titan Europe 2006-3, after the building in question lost nearly 90% of its stated value when the occupants - German .......

    News Round-up 1 October 2014

  • CMBS slowdown for now

    After a quieter than average week last week US CMBS has been in similar mode this week so far, but that is expected to change once the new quarter starts.

    "It's been quiet today as it's quarter-end, though we have seen some selective selling and there are some BWICs too," says one trader. "But for the most part accounts seem .......

    SCIWire 30 September 2014
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