CMBS

  • Cumulative defaults remain flat

    Fitch's quarterly US fixed-rate CMBS cumulative default rate remains flat at 13.5%, due to relatively stable default and new issuance levels. In 2Q14, 68 loans totalling US$974.5m were newly defaulted, down from 91 loans (US$1.1bn) in 1Q14 and 97 loans (US$1.4bn) in 2Q13. Of the loans sized at over US$20m, 12 accounted for approximately 62% of the total newly defaulted .......

    News Round-up 21 July 2014

  • TMAN 7 D bonds overvalued?

    Pricing on the TMAN 7 class D bonds does not reflect the risks involved, say Deutsche Bank CMBS analysts. An update call last month from special servicer Hatfield Philips has enhanced transparency around the transaction, but there are concerns about possible tax costs.

    Projected end dates were disclosed for the majority of the loans in the special servicer's update and .......

    News 18 July 2014

  • US CMBS abuzz with bid-lists

    There was heavy BWIC volume in the US CMBS market yesterday. Bid-lists totalling over US$500m were circulating, with SCI's PriceABS data picking up a range of vintages out for the bid.

    Among the pre-crisis names available was the BACM 2005-3 AJ tranche, which was talked at around 500 and covered at plus 575. The tranche was .......

    Market Reports 17 July 2014

  • Mod adds two hope notes

    The US$54m Colony V portfolio located in the Chicago and Washington DC metro areas has received a modification creating two hope notes. The portfolio previously backed a US$53.7m loan in JPMCC 2007-LDPX.

    The loan went into special servicing in March 2013 after failing to pay off at its maturity and subsequently went into delinquency. Barclays Capital analysts note that it .......

    News Round-up 17 July 2014

  • Securitisation vet enlisted

    Starwood Capital Group has hired Jeffrey DiModica. He will serve as md and assist in finding new business opportunities as well as supporting the growth and expansion of Starwood Property Trust and its affiliated entities.

    DiModica was previously head of ABS, RMBS and CMBS sales and strategy for the Americas at RBS. Before joining RBS he sold derivative and MBS .......

    Job Swaps 17 July 2014

  • Cash-out refinancings supported

    Profiting from the strong post-crisis price recovery, investors who bought commercial properties from mid-2009 to early 2011 can typically pull out all of their cash equity via refinancing, according to the latest Moody's/RCA CPPI Index report. Investors who acquired properties through 2004 can also do so.

    "Assuming a 70% loan-to-value (LTV) ratio on the both the original loan and the .......

    News Round-up 15 July 2014

  • WPG taps CMBS financing

    Simon Property Group formally completed its spin-off of 54 strip centres and 44 malls to Washington Prime Group (WPG) at the end of May. CMBS strategists at Morgan Stanley report that the new entity financed seven of these properties with US$410m of debt securitised in 2014-vintage CMBS 2.0 deals, meaning that 26 properties are now encumbered by a total of .......

    News Round-up 15 July 2014

  • Sharp fall for industrial late-pays

    US CMBS delinquencies fell by 10bp in June to 4.87% from 4.97% a month earlier, marking the fifteenth straight month of declines, according to Fitch's latest index results for the sector. In particular, the agency notes that the industrial late-pay rate fell sharply (by 65bp), which brings the rates for all major property types to below 6% for the first .......

    News Round-up 14 July 2014

  • FVPO expenses clarified

    C-III Asset Management has issued a clarification pertaining to the US$60.8m Rock Point Corporate Center loan securitised in CD 2006-CD2. The move is in response to a recent note published by Morgan Stanley's CMBS research team highlighting that an affiliate of the special servicer exercised a fair value purchase option (FVPO) on the asset for US$52.1m in May.

    The Morgan .......

    News Round-up 14 July 2014

  • Euro ABS activity encouraging

    The seasonal summer slowdown has not yet set in for the European ABS market. While the secondary market might be softening a little, activity in the primary market continues at good levels.

    "We are still seeing new deals being announced in the market so we have got a few weeks more to go before things get quiet. It is an active .......

    Market Reports 11 July 2014

  • Losses threaten CMBS C class

    The US$62.4m 2000 Corporate Ridge Road loan securitised in BACM 2006-4 has been moved into special servicing, according to the July remittance report. It will be specially serviced by C-III Asset Management.

    Barclays Capital CMBS analysts note that the McLean, Virginia-based office building's lead tenant is set to leave in January 2015, leaving the building almost empty and DSCR likely .......

    News Round-up 11 July 2014

  • Euro CMBS loan maturities will slow

    Fewer loans securitised in European CMBS are due to mature in the second half of 2014, when only 12 loans will have their originally scheduled maturity dates, says Moody's. The slowdown follows the surge of loan maturities in 2013 - when 133 loans totalling €16.11bn matured - and in the first half of 2014, when another 43 loans totalling €4.44bn .......

    News Round-up 10 July 2014

  • German CRE sentiment change 'too slow'

    Recovering sentiment towards German commercial property in the secondary retail market will not be enough to avoid significant losses on many legacy loans in affected CMBS transactions, says Fitch. The rating agency expects rental yields in secondary markets to continue their decline from the peak in 2012.

    Prices are not expected to approach pre-crisis levels in time for CMBS maturities. .......

    News Round-up 10 July 2014

  • Broker-dealer adds CMBS pair

    Cross Point Capital has announced the appointments of Tim Martin and Sudeep Walvekar. Martin is head of CMBS sales and trading at the firm, while Walvekar is also part of the CMBS sales and trading team.

    Martin has extensive real estate experience, having joined Salomon Brothers in 1986 and since holding several mortgage origination and CMBS trading positions, including as .......

    Job Swaps 9 July 2014

  • BAML preps single-sponsor CMBS

    Details have emerged on the BAMLL 2014-ICTS single-sponsor CMBS. The US$188m transaction is backed by a non-recourse mortgage loan secured primarily by a first mortgage on the borrower's fee simple interest in a luxury hotel in New York City.

    The interest-only loan has an initial term of 25 months but allows for four one-year extensions. Interest is accrued at a .......

    News Round-up 9 July 2014

  • Stable outlooks dominate APAC

    Fitch affirmed 195 Asia-Pacific structured finance (SF) tranches in 2Q14. The agency also upgraded seven tranches and downgraded three others.

    Of the total affirmations, 77 were from Australia, which also contributed five of the upgrades during the quarter. The upgrades were made to prime RMBS and unsecured consumer loan ABS bonds, where a build-up of credit enhancement supports the higher .......

    News Round-up 8 July 2014

  • Location boosts CRE performance

    Over 26,000 loans collateralising US conduit CMBS deals issued since 2005 - representing US$363bn or about 80% of the conduit universe - have so far reported full-year 2013 cashflow data. Bank of America Merrill Lynch CMBS analysts have aggregated this data across vintages, property types and property locations to glean a better understanding of commercial real estate performance over the .......

    News 7 July 2014

  • Pricing in prepayment protection

    Tightening loan margins and note spreads have increased the likelihood of European CMBS 2.0 prepayments. However, prepayment protection appears not to have been fully priced in for certain bonds.

    CMBS prepayment protection affects how much bond prices can rise above par when spreads tighten. Barclays Capital CMBS analysts note that deals have employed various ways to treat early redemptions at .......

    News 4 July 2014

  • CMBS pay-offs drop

    The percentage of US CMBS loans paying off on their balloon date slipped noticeably in June to 67.3%, about 10 points lower than the May reading of 77.1%, according to Trepp. In comparison, the 12-month moving average stands at 71.7%.

    By loan count as opposed to balance, 74.1% of loans paid off last month - marking a slight decrease from .......

    News Round-up 4 July 2014

  • Green light for ABS, RMBS ratings

    Morningstar Credit Ratings' designation on the NAIC credit rating provider (CRP) list has been extended to cover all ABS and MBS. Previously the designation only covered CMBS.

    The amendment became effective last month and provides insurance companies with an extra option among rating providers for determining risk-based capital under NAIC guidelines. Investors using a designated CRP are exempt from making .......

    News Round-up 3 July 2014

  • German MFH performance to remain strong

    German multifamily (MFH) CMBS performance has been strong since transaction origination in 2012 and 2013, Fitch notes. The agency expects this trend to continue in the coming quarters, due to the stable economy in Germany.

    "The collateral performance of the largest MFH transactions has remained stable to positive over the last 12 months, visible through increasing rental levels, stable vacancy .......

    News Round-up 3 July 2014
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