CMBS

  • Further CMBS auctions listed

    A further 64 properties backed by US$403m in US CMBS loans have been added to the Auction.com sales listed for June (see also SCI's CMBS loan events database). A large portion of these loans are from a few deals on which CWCapital is the special servicer, according to Barclays Capital CMBS analysts.

    They note that the largest deal .......

    News Round-up 27 May 2014

  • New issuance dampens default rate

    Fitch's US CMBS cumulative default rate declined by 20bp in the first quarter to 13.5%, due to US$8.3bn in new issuance. In 1Q14, 91 loans totalling US$1.1bn were newly defaulted, up considerably from 42 loans (US$340.3m) in 4Q13 and 72 loans (US$781.2m) in 1Q13.

    The increase in the quarterly default amount was driven by larger loans over US$20m, according to .......

    News Round-up 23 May 2014

  • SFR criteria released

    Kroll Bond Ratings has published its single-family rental (SFR) securitisation methodology. Given the hybrid nature of the underlying collateral, KBRA will employ elements from both its CMBS and RMBS methodologies to analyse SFR transactions.

    When considering the probability of default of a SFR loan, KBRA determines the estimate of sustainable net cashflow, known as KBRA Net Cash Flow (KNCF). KNCF .......

    News Round-up 22 May 2014

  • CMBS chief makes move

    Goldman Sachs has hired Jonathan Strain as an md in its commercial mortgage bond business. He will become co-head of the US real estate finance group, alongside Ted Borter, and be based in New York.

    Strain joins from JPMorgan, where he was head of CMBS capital markets. He has also worked at Dillon Read Capital Management, UBS and Morgan Stanley.

    .......

    Job Swaps 22 May 2014

  • LEMES 2006-1 offer enhanced

    IEF, the sponsor of Dutch CMBS Leo-Mesdag, has offered noteholders an enhanced restructuring proposal. The new proposal includes an additional equity contribution of €15m, to be paid out either as additional interest to the class A notes or as loan amortisation.

    A proposal made last month failed to gain sufficient approval from class A noteholders (see SCI's CMBS loan events .......

    News 22 May 2014

  • CMBS property set for condemnation

    The property securing the US$22.8m Cahuenga Mixed Use loan in COMM 2012-CR1 has been watchlisted due to the threat of condemnation by the City of Los Angeles. Morgan Stanley CMBS strategists note that it is highly unusual for CMBS properties to be condemned or seized via eminent domain.

    The move is in connection with a major redevelopment of Universal Studios, .......

    News Round-up 21 May 2014

  • Idiosyncrasies drive CMBS 2.0 defaults

    The first US CMBS 2.0 loan defaults have surfaced. However, Fitch notes that they were driven by idiosyncratic events and do not appear to be the start of prolonged rising defaults.

    Nine loans totalling US$74.9m defaulted last year in CMBS deals issued between 2010 and 2013. Eight of the defaults were on loans for multifamily properties. The causes were largely .......

    News Round-up 20 May 2014

  • LDPX delinquencies drop

    May remittance reports indicate that 11 loans totalling US$284.5m were liquidated from the JPMCC 2007-LDPX CMBS by LNR, a portion of which is likely due to Auction.com sales. The resolutions resulted in an overall loss severity of 52%, according to Barclays Capital figures.

    The largest liquidated loan was the US$103.5m Long Island Marriott and Conference Center loan (see SCI's loan .......

    News Round-up 19 May 2014

  • Stuy Town mezz interest discussed

    Further analysis of the mezzanine loan encumbered by Stuyvesant Town-Peter Cooper Village has emerged, following reports that CWCapital plans to foreclose on the asset (SCI 15 May). CMBS strategists at Morgan Stanley found that US$1.4bn of mezzanine debt was tranched into various components, with Mezz 1-3 accounting for US$300m, Mezz 4-9 totalling US$600m, Mezz 10 totalling US$300m and Mezz 11 .......

    News Round-up 16 May 2014

  • CRE info firms unite

    Trepp has bought CRE Direct, providing mutual clients with streamlined access to additional CRE information and analysis. Trepp will deliver authorised access to CRE Direct through its TreppTrade, TreppCMBS and TreppLoan products and CRE Direct will continue to operate independently.

    .......

    Job Swaps 16 May 2014

  • Turning tide?

    ECB attitude shift provides securitisation lift

    The re-emergence of the European securitisation market has been helped by initiatives like the European DataWarehouse (SCI passim). This process could be set for greater impetus from the ECB, particularly if a high quality securitisation (HQS) label is introduced.

    The build-out of the European DataWarehouse (ED) has been a key development in the market post-financial crisis. Despite some initial scepticism, .......

    News Analysis 16 May 2014

  • Stuy Town news sparks rally

    US CMBS bonds with exposure to the US$3bn Stuyvesant Town-Peter Cooper Village loan rallied yesterday on reports that Fortress is readying a US$4.7bn bid for the asset, while CWCapital may initiate a mezzanine foreclosure. If these moves materialise, the five transactions in which the loan is securitised are expected to take little - if any - A-note losses upon its .......

    News Round-up 15 May 2014

  • Rates encourage CMBS prepays

    US CMBS loans have experienced an increase in the number of early prepayments with defeasance or yield maintenance recently. Forward rate expectations are a strong driver of such activity, but higher penalty payments have dampened cash-out refinancings.

    Early prepayment volumes are still a long way off the levels seen in 2005-2007, when the gross WAC for new CMBS originations increased .......

    News 15 May 2014

  • Hedge fund AUM hits highs

    Investors allocated heavily into hedge funds in April, the third consecutive month of elevated inflows, according to eVestment. The US$17.9bn of new capital added offset the slight asset-weighted performance declines and pushed the industry's AUM to an all-time high of US$2.94trn.

    Credit fund flows were positive but near flat for the second consecutive month, albeit AUM remains at an all-time .......

    News Round-up 15 May 2014

  • Multi-borrower SFR concerns outlined

    Credit concerns related to single-family rental (SFR) securitisations backed by loans to multiple borrowers will differ in several important respects from the single-borrower SFR transactions that have recently been issued, according to Moody's. Such deals - especially when backed by loans to many small borrowers, each of which owns only a few properties - will likely exhibit less default volatility .......

    News Round-up 15 May 2014

  • CMBS payments imply unique structure

    The most recent payment report for European CMBS Infinity Soprano shows that the transaction amortised by €31.8m on the May IPD. In an unusual development, proceeds from two EHE loans that failed to pay in January (SCI 28 January) are continuing to be passed through to noteholders.

    Redemption proceeds were applied modified pro-rata, with the pro-rata portion correcting a previous .......

    News 15 May 2014

  • Store closures unlikely to hit CMBS

    A flurry of in-line tenant store closures in the US could further weaken some already underperforming malls, especially those in tertiary locations, Fitch says. However, the store closures are unlikely to have a significant impact on the performance of Fitch-rated CMBS.

    The majority of the store closing announcements made thus far in 2014 are associated with smaller-sized tenants. These retailers .......

    News Round-up 14 May 2014

  • Dodd-Frank to prompt B-piece sales

    The first four months of the year have seen 60 US CMBS B-piece bonds appear a combined 97 times on BWICs. Dodd-Frank risk-retention requirements could accelerate this trend in the near term.

    Morgan Stanley CMBS analysts put the value of those B-piece bonds at US$630m. For 50 out of the 60 bonds, the original B-piece buyer had been either Rialto, .......

    News 14 May 2014

  • Office Depot exposure examined

    Retailer Office Depot is set to close over 400 of its stores, following its merger with OfficeMax. A list of store closures has not yet been made available, but about 380 properties across 355 US CMBS loans are believed to have exposure to Office Depot or OfficeMax.

    The store closures will occur in stages, with 150 scheduled for this year .......

    News Round-up 14 May 2014

  • Core commercial outperforms apartments

    The Moody's/RCA Commercial Property Price Indices (CPPI) national all-property composite index decreased by 0.1% in March and now stands 57.4% above its January 2010 trough and 6.3% below its November 2007 peak. The apartment component increased by 0.3%, while the larger core commercial component decreased by 0.3%.

    However, core commercial prices have increased by 16.3% over the last 12 months, .......

    News Round-up 14 May 2014

  • Incremental changes for the GSEs

    The FHFA has released its 2014 strategic plan for the conservatorship of and the scorecard for the GSEs. Many of the changes are seen as incremental in nature compared with previous strategic plans.

    Under the scorecard, the FHFA has set a US$90bn target for risk transfer in 2014 and each enterprise must utilise at least one transaction type in addition .......

    News Round-up 14 May 2014
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