CMBS

  • Kyo-Ya leverage eyed

    Fitch says that the most recent financing of the Kyo-Ya hotel portfolio, a little more than a year after its last refinancing, demonstrates the increasing leverage being offered by US CMBS lenders. The higher debt levels associated with the COMM 2014-KYO transaction - which was initially reviewed, but ultimately not rated by the agency - combined with a reduced collateral .......

    News Round-up 19 June 2014

  • First CMBS 2.0 loss recorded

    The US$5.7m The Cove at Southern loan, securitised in JPMCC 2011-C5, has become the first CMBS 2.0 conduit loan to take a loss - albeit a nominal one. According to June servicer data, the trust realised US$5.9m in gross proceeds from the sale of the property and a US$34,100 loss after fees and repayment of advances.

    Trepp notes that watchlist .......

    News Round-up 19 June 2014

  • Core commercial prices outperforming

    US core commercial prices have surpassed apartment prices by four percentage points over the last 12 months, according to the latest Moody's/RCA CPPI report. Core commercial prices have risen to 16.4%, compared with 12.4% for apartments.

    "Over the last year, all core commercial sectors have had double-digit price increases, with central business district office performing the strongest," says Moody's director .......

    News Round-up 18 June 2014

  • V tranche benefits from hyper-amortisation

    The US$58.7m Citizens Bank Portfolio, securitised in BACM 2006-5, has paid off in full almost three years after its anticipated repayment date (ARD) of July 2011. The loan also received US$4.1m in other interest proceeds, which weren't applied to the typical interest waterfall but instead were diverted to the residual V tranche.

    Barclays Capital CMBS analysts explain that the V .......

    News Round-up 18 June 2014

  • Compression trades

    European ABS relative value discussed

    Spread compression has made identifying relative value in the European ABS market more difficult. However, panellists participating in IMN's Global ABS research analyst roundtable agreed that opportunities remain in certain peripheral RMBS, UK non-conforming RMBS and CMBS bonds.

    Shammi Malik, head of European ABS trading at Stormharbour, noted that the compression trade has gained such momentum that from a relative .......

    News Analysis 17 June 2014

  • Agency names add to CMBS supply

    US CMBS secondary market spreads did not move too much yesterday, but BWIC volume was up strongly to reach US$517m. Supply to start the week was boosted by a number of agency securities, with SCI's PriceABS data recording a range of vintages across the segment.

    Among the agency CMBS names out for the bid yesterday, the FHMS K006 .......

    Market Reports 17 June 2014

  • Unusual pay-outs reported

    The US$20m 4001 North Pine Island Road loan has been liquidated for US$7.5m, resulting in unusual pay-outs for the JPMCC 2006-CB15 CMBS. The loan generated US$7.5m, but the entire balance was used to pay expenses totalling US$7.8m, according to Barclays Capital CMBS analysts.

    "Expenses were so high because of a modification applied to the loan in 2009. As a result .......

    News Round-up 16 June 2014

  • Delinquencies hit 2009 low

    US CMBS delinquencies declined by 16bp in May to 4.97% from 5.13% a month earlier, according to Fitch's latest index results for the sector. Marking the first time the rate has stood below 5% since December 2009, the decline was led by a handful of dispositions from JPMCC 2007-LDPX, including two loans over US$50m (see SCI's CMBS loan events News Round-up 16 June 2014

  • Fair value option below appraisal

    The Bryant Park Hotel has been liquidated for US$65m via a fair value purchase option. The property is backed by a US$85m loan securitised in JPMCC 2007-CB18, which was transferred to special servicing in October 2011 due to litigation regarding cash management issues.

    A liquidation report released by special servicer KeyBank along with the remittance indicated that the controlling class .......

    News Round-up 13 June 2014

  • Windermere notes wiped out

    Principal losses have been applied to the class E and F notes of Windermere VII after the liquidation of the RedLeaf I loan. S&P has subsequently downgraded those notes to single-D.

    The underlying pool initially comprised 12 loans secured on real estate assets in Germany, France, Spain, and Sweden. The remaining securitised balance on the April IPD was €111.3m.

    The .......

    News Round-up 12 June 2014

  • RFC issued on NPLs

    Moody's is seeking feedback on its proposed approach to rating securitisations backed by non-performing loans (NPLs). The agency proposes to not only consolidate its two existing NPL methodologies, but also to expand the scope of its methodology to address concentrated commercial real estate NPLs and revolving pools. It may apply haircuts to base-case cashflows to derive the final model outputs, .......

    News Round-up 10 June 2014

  • CMBS criteria updated

    Fitch has updated its EMEA CMBS and loan rating criteria, following the publication of an exposure draft in April (SCI 15 April). The update does not affect any existing ratings.

    The criteria update is consistent with the exposure draft, apart from in two areas. First, the criteria will also apply a rating cap to certain CMBS transactions in jurisdictions where .......

    News Round-up 10 June 2014

  • Large loan CMBS warning

    The quality of the properties in recently securitised large loan CMBS deals has improved, but the overall level of debt in triple-B minus to single-B minus tranches is concerning, according to Fitch. The agency says that in four recent large loan transactions it didn't rate the differences in ratings ranged from one notch lower on the triple-A rated debt to .......

    News Round-up 10 June 2014

  • Italian CMBS in the works

    Deutsche Bank is in the market with a €355m CMBS, dubbed DECO 2014 - Gondola, which is backed by three loans secured on 18 properties across three portfolios in Italy. The portfolios were indirectly acquired by Blackstone in three separate transactions between December 2013 and February 2014.

    The properties - totalling 685,314 square-meters - are located primarily in Northern Italy. .......

    News Round-up 10 June 2014

  • WINDM X statement addressed

    Mount Street has responded to Hatfield Philips International's comments regarding Windermere X (SCI 4 June). The firm says that HPI made "a number of inaccurate statements" that it feels "duty bound" to correct, so that bondholders can make a fully informed decision about the proposed transfer of special servicing.

    In particular, Mount Street takes issue with HPI's assertion that it .......

    News Round-up 10 June 2014

  • Omni builds real estate capabilities

    Omni Partners has acquired a stake in Brookland Partners. The deal will provide Omni with additional operational and intellectual capital to develop its internal real estate debt capabilities, while Brookland will benefit from Omni's specialist alternative product experience and institutional infrastructure.

    Omni entered the real estate debt space when it acquired UK property lender Capital Bridging Finance last year and .......

    Job Swaps 10 June 2014

  • Portfolio purchase surprises to upside

    The portfolio underlying the FOX 1 CMBS has been purchased by Kennedy Wilson Europe Real Estate for £296m, which is £48m more than its most recent valuation. The property recovery estimate in September had been £235m (SCI 5 September 2013).

    The FOX 1 portfolio was acquired through a CMBS loan enforcement. The English assets were sold by Dudley Holme-Turner of .......

    News 10 June 2014

  • Analytics service enhanced

    Lewtan has released an enhanced version of its structuring and analytics platform, ABSNet Modeler, which is geared to all sectors of the new issue securitisation market. The enhancements consist of updated rating agency liability model criteria for CLOs (Moody's, Fitch and S&P), with the inclusion of multiple matrix point inputs.

    In addition, the deterministic loan and global level assumptions now .......

    News Round-up 9 June 2014

  • CMBS pay-offs jump

    The percentage of US CMBS loans paying off on their balloon date jumped sharply in May to 77.1%, according to Trepp. The rate is more than 13 points higher than the April reading of 63.6% and breaks a string of five straight months in which the pay-off rate fell (from 81.3% in November).

    The May pay-off percentage was well above .......

    News Round-up 9 June 2014

  • CMBS disposition times lengthening

    Fitch reports that inventories and disposition times for US CMBS assets in special servicing as of year-end 2013 modestly increased compared to year-end 2012. The agency says that its highest-rated servicers continue to maintain younger REO portfolios on average compared to lower-rated servicers.

    Highly-rated servicers (in the CSS1 category) held REO assets in special servicing for an average of 32.6 .......

    News Round-up 9 June 2014

  • CRE firm opens Boston office

    CCRE has opened an office in Boston. It will be led by Tom Sullivan, who will focus on loan origination and servicing CCRE's clients across the greater New England area.

    Sullivan joined CCRE in 2012 and reports to co-heads of origination and capital markets Peter Scola and Lawrence Britvan as well as coo Michael May. Before joining CCRE, Sullivan worked .......

    Job Swaps 9 June 2014
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