CMBS

  • Fee 'blind spots' examined

    Weak EMEA CMBS transaction documentation governing work-out costs and liquidation fees can lead to note shortfalls, even where no securitised loans suffer a loss, Fitch notes. The agency says that, in some cases, misalignment of loan- and issuer-level documentation can leave blind spots regarding the bearer of fees.

    Charging the borrower for work-out costs ensures that equity fully bears the .......

    News Round-up 3 March 2014

  • Chinese CMBS prepped

    Dynasty Property Investment is prepping its second cross-border CMBS. Dubbed China Real Estate Asset Mortgages, the US$290m transaction is backed by nine retail properties in nine cities across China.

    The deal comprises US$232m class A notes (provisionally rated Aa3 by Moody's) and US$58m class Bs (A3), as well as an unrated CNH440m class C loan. The rating assigned to the .......

    News Round-up 3 March 2014

  • Delinquencies down on CWCAM sales

    The Trepp US CMBS delinquency rate decreased by 47bp to 6.78% in February, marking the ninth straight month of improvement. The rate is 264bp lower than it was a year ago and 356bp lower than the all-time peak during the summer of 2012.

    The decrease is attributed to the jump in loan resolutions, driven by the CWCapital distressed asset sales. .......

    News Round-up 3 March 2014

  • SFR operational risk highlighted

    S&P says it is yet to see a single-family rental (SFR) securitisation with the level of credit enhancement and other risk-mitigating features that warrant the highest investment grade rating. The agency's primary reservations regarding the sector revolve around the industry's operational infancy, historical performance, the current business model's ability to withstand extreme economic conditions and the ultimate liquidation values of .......

    News Round-up 28 February 2014

  • Liquidation volume doubles

    US CMBS liquidation volume doubled in February, due in large part to many of CWCapital's REO asset sales flowing through remittance reports. Liquidation volume ended this month at US$2.65bn, more than double January's volume and the 12-month moving average of US$1.33bn, according to Trepp.

    February loss severity came in at 45.59%, down from January's 58.51% and on par with the .......

    News Round-up 28 February 2014

  • CLO relief in sight?

    The US House Committee on Financial Services held a hearing yesterday on the impact of the Dodd-Frank Act on ABS. Witnesses included representatives from the LSTA, Georgetown University Law Center, Center for Capital Markets Competitiveness, CRE Finance Council and SFIG.

    Testimony addressed Representative Barr's draft legislation on CLOs and Volcker - which calls for grandfathering of all CLOs issued before .......

    News Round-up 27 February 2014

  • CWCapital liquidation trends emerging

    A number of trends have become apparent for the loans liquidated in CWCapital's bulk sale (SCI passim). Proceeds have generally been higher than appraisals - on average by 13% - and loss severities are coming in at around 50%.

    Barclays Capital CMBS analysts estimate that US$1.9bn of the US$3.2bn of loans placed for bid in auctions sent liquidation proceeds to .......

    News 26 February 2014

  • Steady state for US CMBS secondary

    Generic US CMBS spreads were mostly unchanged yesterday with BWIC volume of around US$270m. SCI's PriceABS data reveals a few tranches from 2013 as well as names from the more commonly seen 2006 and 2007 vintages out for the bid.

    CD 2006-CD3 C was talked in the high-50s and at around 69 but did not trade. .......

    Market Reports 25 February 2014

  • CMBX 3 correction issued

    Markit has issued a correction in connection with a loss recoupment on the CWCI 2006-C1 D tranche that wasn't reflected in January's CMBX.A.3 index settlements (SCI 23 January). A US$7,400 correction payment will now be made on US$1m original face trades.

    The failure to reflect the loss reimbursement is believed to be due to the trustee reporting the payment as .......

    News Round-up 25 February 2014

  • TRACE reprieve for CDOs, CMBS

    FINRA will exclude CDOs, CBOs, CLOs and non-agency CMBS from its proposal to expand TRACE's coverage of securitised products (SCI 5 November 2013). The move comes after SIFMA submitted a comment letter on the proposal to the SEC (SCI 9 January).

    Specifically, CDOs, CBOs, CLOs and non-agency CMBS will not be classified as 'asset-backed securities' (as defined in proposed FINRA .......

    News Round-up 25 February 2014

  • CWCAM recoveries confirmed

    CWCapital Asset Management reports that it has liquidated 110 of the 134 assets marketed via CBRE and Auction.com, with 12 further assets expected to close by mid-March (SCI passim). It is projected that overall recoveries averaging 66 cents on the dollar of US$3.43bn unpaid principal balance will be achieved through the bulk sale.

    The assets that were marketed through CBRE .......

    News Round-up 24 February 2014

  • Surge in SFR issuance anticipated

    US home rental securitisation issuance is predicted to hit US$5bn this year. The increasing cost of homeownership is driving the need for rental housing and institutional investors appear to be responding to the demand.

    The rise in renter households has outpaced ownership by a factor of 10, according to Deutsche Bank CRE debt strategist Harris Trifon. He notes in a .......

    News Round-up 21 February 2014

  • TITN 2007-CT1 losses to reach Bs

    Mixed loan-level developments for the pan-European CMBS Cornerstone Titan 2007-1 suggest that principal losses could reach the class B notes, according to Barclays Capital CMBS analysts. The A2 class has become most senior tranche, increasing the risk of a note EOD and further complicating class B losses.

    The transaction balance has reduced from its initial €1.3bn to €483.8m, as of .......

    News 21 February 2014

  • Credit fund redemptions persist

    Investors allocated an estimated US$4.9bn to hedge funds last month, but performance losses of US$12.8bn resulted in total industry AUM declining by 0.3% to US$2.845trn, according to eVestment figures. At the same time, MBS strategies continued to lose assets: January was the sixth month of net redemptions for the sector in the last eight.

    Nevertheless, performance from the group was .......

    News Round-up 20 February 2014

  • Trafford Centre CMBS tapped

    Intu Properties has tapped its Trafford Centre Finance CMBS, with the launch of £110m additional class A, B and D notes. The proceeds will be used to provide funds for the firm's pipeline of active management projects and major extensions.

    The transaction is secured by intu Trafford Centre, the prime super-regional shopping centre near Manchester. The notes, which have an .......

    News Round-up 20 February 2014

  • NPL sales gather pace

    The availability of debt finance for European commercial real estate rose dramatically last year and the pace of non-performing loan sales looks set to increase in 2014. European securitisation analysts at Bank of America Merrill Lynch expect a conservative portion of the resulting transaction volume to fuel future CMBS issuance.

    CBRE last month put the total volume of outstanding CRE .......

    News Round-up 19 February 2014

  • Supply squeeze

    Spread compression to drive non-core issuance

    A supply squeeze in European ABS is driving spread compression across asset classes and between senior and junior tranches. Against this backdrop, non-senior and non-core issuance is expected to pick up.

    Rob Ford, ABS portfolio manager at TwentyFour Asset Management, questions whether there is room for European ABS spreads to move any tighter at the top end of the market. .......

    News Analysis 19 February 2014

  • Orrick adds CMBS pair

    Orrick, Herrington & Sutcliffe has appointed William Cullen and Janet Barbiere as partners in its structured finance group in New York. The pair specialise in CMBS.

    Cullen and Barbiere both worked at Kaye Scholer and before that at Thacher Proffitt & Wood and at Sidley Austin. They frequently act as CMBS issuer and underwriter counsel for investment banks and also .......

    Job Swaps 19 February 2014

  • CMBS production pro appointed

    Matt Stevens has joined the production team at Greystone as a director. He will focus on origination for debt financing solutions across Fannie Mae, Freddie Mac, FHA, CMBS and Greystone's proprietary lending platforms.

    Stevens has over 15 years of commercial lending and banking experience and will report to Rick Wolf. He was previously at Alliant/ACRE Capital and has also worked .......

    Job Swaps 19 February 2014

  • LDP11 bucks liquidation trend

    Remittances have been reported for three more US CMBS with exposure to the CWCapital bulk sale - BACM 2007-1, JPMCC 2007-LDP11 and WBCMT 2006-C28. LDP11 appears to have bucked the trend for net sales proceeds to exceed recent appraisal values.

    Seven JPMCC 2007-LDP11 loans totalling US$323m were liquidated at a weighted average loss severity of 73%, which is 10% higher .......

    News Round-up 19 February 2014

  • Further positive CWCap outcomes

    The February remittance for the MLCFC 2007-5 CMBS recorded US$192m of liquidations across 10 properties listed in the CWCapital bulk sale. The dispositions resulted in US$103.7m of realised losses, implying a 54% severity, according to CMBS analysts at Barclays Capital.

    The liquidations pushed losses up to the F tranche of the transaction. After including US$67m of scheduled pay-downs, incoming principal .......

    News Round-up 17 February 2014
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