CMBS

  • NAIC proposals to boost insurer demand?

    The US NAIC recently published the proposed macroeconomic assumptions and scenarios for its year-end 2014 analysis of insurer-owned RMBS and CMBS. The proposed scenarios are expected to result in higher assumptions for the Home Price Index and National Property Index, potentially leading to lower capital requirements for some RMBS and CMBS bonds.

    Indeed, taken together with another proposal under NAIC's .......

    News Round-up 19 September 2014

  • WPG to 'prune' CMBS exposure?

    Washington Prime Group (WPG) is to acquire Glimcher Realty Trust (GRT) for US$4.3bn in cash and stock, including the assumption of debt. The combined company will be renamed WP Glimcher and own a portfolio of 119 retail properties, with a combined 58 million square-feet of gross rentable area.

    CMBS strategists at Morgan Stanley have identified 47 of these properties as .......

    News Round-up 18 September 2014

  • BWICs still dominating Euro ABS

    Today sees another large slew of European ABS and MBS BWICs, which is dampening other secondary market activity.

    "It's a question of getting through a lot of line items again today. It's been the same story for the past few days, throughout which we've seen reasonably good execution," says one trader.

    The volume of lists has meant that the rest of .......

    SCIWire 18 September 2014

  • No demand for eclectic list

    The 40 line €185m eclectic BWIC list of ABS, CDOs, CFOs, SME CLOs, CMBS and RMBS failed to find investor demand this afternoon with 32 of the bonds on offer not trading.

    A further six bonds were only revealed to have traded - BBVAR 2007-2 A2, BCJA 5,CSTNA 2007-1 A, DEKAE II-X E, EMERM 4 B and SANFI 2006-1 E. .......

    SCIWire 17 September 2014

  • Special servicer transfers surveyed

    Although US CMBS loan delinquencies have been trending steadily lower, the past spike in defaults, coupled with declines in collateral values has led to more frequent erosion of first-loss outstanding principal and consequently changes in controlling-class bondholders and ultimately named special servicers. This has sparked concern that the volatility caused by these changes in the special servicer negatively impacts both .......

    News Round-up 17 September 2014

  • Eclectic euro list circulating

    The market's continuing appetite for all things European seemingly irrespective of deal type could meet its match tomorrow with a large eclectic BWIC list currently circulating. The 40 line €185m list due for trade at 14:00 London time includes ABS, CDOs (including ABS CDOs, CBOs and Trups CDOs), CFOs, SME CLOs, CMBS and RMBS.

    Talk appears to be thin on .......

    SCIWire 16 September 2014

  • Negative correlation offers diversification

    US consumer ABS spreads are wider and more volatile in the post-crisis period. However, a recent Wells Fargo study of the distribution of correlation coefficients indicates a less correlated and more diversified market than in the past.

    ABS strategists at the bank calculated correlation coefficients for a variety of ABS sector pairs. For the 2004-2007 period, 90% of the correlation .......

    News 16 September 2014

  • Cash-out impact examined

    Kroll Bond Rating Agency has published a research report delving into borrower equity cash-outs in the US CMBS market. Given increased competition among lenders, the agency sought to quantify the impact that equity cash-outs have had in driving its main stressed metrics into riskier territory.

    Slightly less than half of the loans in KBRA's top-20 rated universe have returned equity .......

    News Round-up 16 September 2014

  • B-piece liquidity increasing

    Secondary market liquidity for US CMBS B-pieces is increasing, with 162 bonds totalling US$1.2bn appearing on BWICs year-to-date, according to Morgan Stanley figures. CMBS strategists at the bank note that the majority of the B-pieces traded in the secondary market are primarily double-B and single-B rated bonds from deals issued in 2012 and prior. However, some unrated bonds are also .......

    News Round-up 16 September 2014

  • Increasing US CMBS supply

    Spreads held steady in US CMBS into the end of last week, but with ever increasing bid list supply expectations are they will have to budge sooner rather than later.

    There are now six bid lists scheduled for today and a further two already on the slate for tomorrow. Among today's lists the most eye-catching is the 12:30 New York .......

    SCIWire 15 September 2014

  • Acropolis calculation error corrected

    The US$19.5m Acropolis Gardens Realty Corp loan, securitised in WFRBS 2013-C15, has had its recently reported US$246,887 realised loss reversed (see SCI's CMBS loan events database). The loan was secured by a 612-unit cooperative residential building located in Astoria, New York.

    The loan was transferred to special servicing in March 2014 due to monetary default. The borrower had .......

    News Round-up 15 September 2014

  • Delinquencies off-set resolution gains

    US CMBS delinquencies fell by 2bp in August to 4.85% from 4.87% a month earlier, according to Fitch's latest index results for the sector, despite the highest volume of changes to the index since March. While resolutions rebounded strongly last month to US$1.075bn, delinquencies hit US$1.082bn, representing the largest volume of new delinquencies since February 2013.

    The surge in resolutions .......

    News Round-up 15 September 2014

  • CMBS origination platform prepped

    Principal Real Estate Investors and Macquarie Group are forming Principal Commercial Capital, a lending platform focused on originating and securitising commercial mortgages. Principal Real Estate Investors will source, underwrite, close and service loans while Macquarie will provide funding and capital markets expertise.

    Principal Real Estate Investors has a long track record as a CMBS loan originator and seller. Macquarie has .......

    Job Swaps 15 September 2014

  • Euro mezz takes centre stage

    ECB president Draghi's comment on Friday that the ABSPP would be more effective if it were to include mezzanine paper has drawn market focus to that section of the capital structure.

    On Friday and into this morning investor demand has centred on mezz paper in European ABS, CMBS and RMBS, notably Dutch prime. Consequently, spreads have moved tighter across all .......

    SCIWire 15 September 2014

  • Largest B-note recovery recorded

    The US$425m Four Seasons Resort Maui loan, securitised in GECMC 2007-C1 (US$175m) and CD 2007-CD4 (US$250m), has paid off in full. The loan was modified with a US$350m/US$75m A/B note split in 2011 (see SCI's CMBS loan events database).

    The pay-off repaid the A-note and the B-note in full and represents the largest B-note recovery to date, according .......

    News Round-up 12 September 2014

  • Property appreciation rates compared

    Many investors who acquired US property after 2000 and sold during the pre-crisis price run-up or who acquired property post-crisis and sold into the recovery realised double-digit annualised appreciation, according to the latest Moody's/RCA CPPI report. The finds are based on a study of annualised appreciation rates for 91 post-2000 purchase/sale holding periods.

    In the apartment sector, of the 26 .......

    News Round-up 12 September 2014

  • US CMBS returns

    After an extended summer lull the US CMBS market at last appears to be on its way back to full functionality.

    BWIC volume exceeded $300m yesterday and Wednesday for the first time since summer began. However, generic spreads remain primarily unchanged, excepting some legacy AMs and double-As, albeit inside the wides of mid-summer.

    Over the next few weeks secondary supply .......

    SCIWire 12 September 2014

  • Healthcare tops severity rankings

    Healthcare edged out all other property types as the worst-performer in 2Q14, according to Moody's latest quarterly US CMBS loss severities update. The 57.4% weighted average loss severity for loans backed by healthcare properties included the 105% loss severity on the Senior Living Properties Portfolio, which liquidated with a US$117.7m loss to the GMACC 1998-C1 transaction (see SCI's CMBS loan .......

    News Round-up 12 September 2014

  • Further Sanchez sales inked

    CR Investment Management has sold a further ten properties located across Germany from the Sanchez Portfolio, resulting in approximately €55m of sales proceeds. Many of the properties are located in non-prime locations and had a number of technical complexities associated with them, such as fire protection issues, 100% vacancy and part-ownership structures.

    The Sanchez Portfolio originally consisted of 107 properties .......

    News Round-up 12 September 2014

  • European CMBS picks up

    Activity has picked up in the European CMBS secondary market over the past few days with decent two-way flows at the top end and now a few BWICs are beginning to appear.

    "First pays are trading fairly well," confirms one trader. "But it's more challenging with the distressed stuff - sellers want higher prices in this market environment, but with most .......

    SCIWire 11 September 2014

  • Euro ABS/MBS softer

    European ABS and RMBS markets opened softer this morning following the direction seen into the close last night and, in turn, broader credit trends. CMBS spreads are still unchanged, but the tights seen over the past week look set to be tested in all three deal sectors over the next two days as BWIC supply is on the increase and .......

    SCIWire 10 September 2014
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