CMBS

  • 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

  • CMBS supply centres on A4s, AJs

    US CMBS bid-list volume came in at around US$175m yesterday, slightly lower than it had been at the end of last week. SCI's PriceABS data shows a significant amount of A4 and AJ paper out for the bid.

    A large CDO liquidation list of fully written-down legacy subordinated bonds is also said to have traded during the session. .......

    Market Reports 13 May 2014

  • Canadian CMBS platform created

    Trez Capital Group has launched a CMBS platform and appointed Ross Brennan to lead it. Trez Commercial Mortgage will focus on providing long-term financing on stabilised income producing commercial properties across Canada.

    Brennan joins as a partner and md. Before he joined Trez he was president and ceo of Otera Capital and prior to that he started the CMBS conduits .......

    Job Swaps 13 May 2014

  • Aussie reporting requirements enhanced

    The Reserve Bank of Australia (RBA) has published updated and more detailed information on how its new reporting requirements for repo-eligible ABS will be implemented. In particular, all data for each securitisation must now be provided on a monthly basis, no later than seven calendar days after an issuer's specified coupon payment date and the equivalent monthly anniversary in non-coupon-payment .......

    News Round-up 13 May 2014

  • Low-quality retail assets eyed

    Moody's expects low-quality retail assets securitised in UK CMBS to be more vulnerable to future changes in technology and consumer behaviour than higher-quality retail assets. The rise of e-commerce, the growth of retail destinations with superior leisure and catering options, and the use of technology to assess the optimal tenant mix and layout of properties are set to influence the .......

    News Round-up 12 May 2014

  • 'Fresh' surveillance tool launched

    Kroll Bond Rating Agency has launched a new monthly CMBS surveillance product -KBRA Credit Profile (KCP) reports. The new service aims to provide the CMBS industry with transparency, accuracy and a "fresh perspective" on CMBS monthly surveillance.

    The KCP platform is the only product utilising a multi-valuation approach, providing full transparency of valuation assumptions and forecasting both default and resolution .......

    News Round-up 12 May 2014

  • Delinquency rate remains stable

    US CMBS delinquencies ticked down by 3bp in April to 5.13% from 5.16% a month earlier, according to Fitch's latest index results for the sector. This marks the smallest drop in over a year, after declines of 10bp or more in nine of the past 12 months.

    The largest new delinquency recorded in April was for the US$80m 1111 Marcus .......

    News Round-up 12 May 2014

  • CMBS pay-offs inch lower

    The percentage of US CMBS loans paying off on their balloon date was 63.6% in April, just one point lower than the March reading of 64.6%, according to Trepp. The April pay-off percentage was lower than the 12-month moving average of 69.5%.

    By loan count as opposed to balance, 67% of loans paid off last month, compared to 64.8% in .......

    News Round-up 12 May 2014

  • Origination differences emerging

    Important differences are emerging among US CMBS originators, Fitch says. This observation is based on the agency's analysis of over 2,000 conduit loans included in 2013 and 1Q14 Fitch-rated transactions, comparing 19 originators across 17 key metrics.

    "This analysis will help investors determine whether anecdotal impressions of originator quality are supported by hard data," says Fitch md Stephanie Petosa.

    The .......

    News Round-up 9 May 2014

  • Stuy Town expectations revised

    The outlook for the Stuyvesant Town-Peter Cooper Village loan, securitised in five CMBS, has improved. Losses are no longer expected and the property could be sold later this year.

    The Manhattan apartment complex backs a US$3bn senior loan split between WBCMT 2007-C30, MLCFC 2007-5, CWCI 2007-C2, WBCMT 2007-C31 and MLCFC 2007-6, as well as US$1.4bn of mezzanine loans (SCI passim). .......

    News 9 May 2014

  • XA spread compression over?

    The strength of US CMBS XA tranche BWIC execution last month caught the market by surprise, leading to a sharp rally in select IOs. New issue XAs are now trading through their historical tights, suggesting that the potential for further upside is limited, especially for bonds from the 2012-2013 vintage.

    A US$1.7bn bid-list consisting of 13 block-sized 2011-2012 vintage conduit .......

    News 8 May 2014

  • Credit drives hedge fund returns

    Hedge fund performance was positive in April, rebounding from its decline in March, according to eVestment. Returns rose by 0.16% during the month and are up by 1.35% year-to-date, on pace for an annualised return of only 4.12%.

    Credit strategies appear to have benefited from a decline in rate markets since the beginning of 2014 and are now the best-producing .......

    News Round-up 8 May 2014

  • CLO research analyst added

    Citigroup has added Maggie Wang to its CLO research team in New York. She joins as a director and will start in June.

    Wang was most recently head of US CLO and CDO research at JPMorgan, where she also closely followed the ABS, CMBS and high yield markets. She has also worked for EMC and Siemens.

    .......

    Job Swaps 8 May 2014

  • Pricing partnership formed

    SCI has launched a partnership with Intex to provide INTEXcalc users with free trial access to SCI PriceABS market prices for securitised products. SCI PriceABS is a daily secondary market colour and price service that includes pre- and post-auction price talk and covers/traded prices for ABS, CMBS, RMBS and CDO/CLO bonds across Europe and the US.

    The SCI .......

    News Round-up 7 May 2014

  • Improved performance seen across CRE

    Delinquency rates continued to decline quarter-over-quarter due to improving economic conditions and a further drop in the share of loans in special servicing, according to Moody's 1Q14 US CMBS and CRE CDO surveillance review. The agency's commercial mortgage metrics (CMM) base expected loss for conduit/fusion transactions fell to 8.6% in the first quarter from 8.9% in 4Q13. Moody's CMM weighted .......

    News Round-up 7 May 2014

  • Liquidation volumes drop

    US CMBS liquidation volumes reached US$844.16m in April, less than half of March's US$1.95bn, according to Trepp. Of the loans that were liquidated, 67% by balance fell into the greater than 2% loss severity category.

    April loss severity came in at 39.77%, down from March's 52.49% and well below the 12-month moving average of 47.57%. The number of loans liquidated .......

    News Round-up 6 May 2014

  • CMBS spreads stay steady

    US CMBS BWIC supply was over US$200m yesterday as spreads stayed mostly unchanged. CMBS 2.0 and 3.0 single-A rated securities tightened in slightly.

    Much of the bid-list supply consisted of agency paper, with SCI's PriceABS data recording a number of covers. There was also significant derivatives activity.

    In the agency space, the FHMS K017 X1 tranche .......

    Market Reports 2 May 2014

  • CMBS market continues to stabilise

    April marks the eleventh straight month of improvement in the delinquency rate for US commercial real estate loans in CMBS, says Trepp. The rate fell 10bp to 6.44% and is now 259bp lower than it was a year ago.

    The delinquency rate has consistently fallen 15bp-50bp over recent months and Trepp attributes the relative slow-down last month to the completion .......

    News Round-up 2 May 2014

  • Coterminous lease issues eyed

    Coterminous leases could be problematic for 2005-2007 vintage US CMBS loans that are scheduled to mature in 2015-2017. Loans with coterminous leases have typically experienced lower refinancing rates, according to a recent Barclays Capital analysis.

    Barclays Capital CMBS analysts estimate that about 15% of the office, retail and industrial loans maturing during 2015-2017 have significant exposure to coterminous leases. Over .......

    News 1 May 2014

  • Call for change in delinquency reporting

    DBRS proposes that the reporting of delinquency statistics in CMBS be amended to include 'DPO', 'note sale' and 'other or TBD', given the prevalence of loss experienced by loans under these work-out strategies. A new study undertaken by the agency - which measures the historical frequency of default and loss severity of CMBS loans that experience different depths of delinquency .......

    News Round-up 1 May 2014

  • Loan resolutions to 'remain stable'

    US CMBS loss severities ticked up slightly year-over-year, while the pace of loan resolutions fell, according to Fitch's latest annual CMBS loan loss study. The agency expects the pace of loan resolutions to remain constant this year and average loss severities to remain stable, compared to 2013.

    Average loss severities rose to 51.2% in 2013 from 50.5% in 2012. Special .......

    News Round-up 29 April 2014
×