CMBS

  • 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

  • CMBS commutations announced

    MBIA Insurance Corp has disclosed that it commuted policies insuring approximately US$3bn of CMBS exposure, in which the reference CMBS were originally rated single-A, for a cost in excess of the third-quarter statutory loss reserve. The monoline says it now has approximately US$760m of CMBS exposure remaining, in which the reference obligations were originally rated triple-B, of which approximately US$391m .......

    News Round-up 17 February 2014

  • Late-pays drop on bulk sales

    US CMBS delinquencies declined by 9bp in January to 5.89%, from 5.98% a month earlier. Late-pays are poised to fall by approximately 40bp over the next two months, however, due to CWCapital bulk asset sales being finalised and reflected in the February and March remittances. These distressed sales will likely bring the overall rate to below 5.5% by the end .......

    News Round-up 17 February 2014

  • Best practices

    Noteholder communications, technology and clearing systems discussed

    Participants in SCI's latest corporate trust roundtable met in December to discuss post-closing best practices and noteholder communications. Technology and documentation challenges, as well as improvements to the clearing systems were among the topics covered. (The full SCI Corporate Trust Roundtable discussion can be downloaded here.)

    Corinne Smith, SCI: Investor concern over securitisation noteholder communications is increasing. I .......

    News Analysis 13 February 2014

  • Barbelled resolutions for GG10

    The February remit for GSMS 2007-GG10 shows that 16 CMBS loans totalling US$592.6m were liquidated in the CWCapital auction at a weighted average loss severity of 51.3%. While this outcome is better than expected, the sale appears to have been barbelled, with some properties not commanding as high a price as the last appraisal value would suggest.

    "The net proceeds .......

    News Round-up 13 February 2014

  • Net loss anticipated for Beacon Seattle

    BACM 2007-2 has become the first CMBS containing a pari passu part of the US$1.3bn Beacon Seattle & DC Portfolio loan to report a pay-down this month. The move follows the recent sale of the Plaza Center & US Bank Plaza buildings for US$186.5m (see SCI's CMBS loan events database).

    As well as BACM 2007-2, the Beacon Seattle portfolio is .......

    News Round-up 12 February 2014

  • Legacy lists lead CMBS supply

    Generic US CMBS spreads were unchanged yesterday as BWIC volume climbed to US$260m. SCI's PriceABS data shows supply concentrated on legacy and agency bonds, with 2.0 tranches harder to come by.

    Covers were rare for 2005-vintage paper, although the CGCMT 2005-C3 AJ tranche traded in the high-200s. The tranche had previously been covered at 275 on 24 January .......

    Market Reports 12 February 2014

  • Liquidation proceeds hit BACM 2008-1

    The February remit report for BACM 2008-1 shows that proceeds from the sale of a property identified as part of the CWCapital auction have been applied to the CMBS trust. Overall a total of US$76.2m of principal proceeds was received for the transaction, resulting in the full pay-off of the A2 class and a US$52.4m payment to the A3s, reducing .......

    News Round-up 11 February 2014

  • CMBS note sales scheduled

    An estimated US$465m of delinquent CMBS loans are due for sale via Auction.com next month. JPMCC 2007-LDPX (serviced by C-III) has the largest exposure to the sale, according to Barclays Capital figures, with US$136m of assets out for the bid.

    The deal with the second largest exposure - at US$65m - is CSFB 2002-CP5 (serviced by LNR), representing a majority .......

    News Round-up 11 February 2014

  • CMBS vet takes leadership role

    Situs has named md Andrew Serling as head of its registered investment advisor, Ranieri Partners Asset Management. He will provide strategic direction for Ranieri and present Situs with business development opportunities as they pertain to CMBS bond investors.

    Serling has more than 20 years of experience in real estate capital markets and investments and has previously worked at Berkadia Commercial .......

    Job Swaps 11 February 2014

  • Stable outlook for Canadian SF

    S&P expects Canadian consumer ABS credit ratings to remain stable in 2014, despite the likelihood of moderate deterioration in underlying collateral performance. The agency believes that new issuers will balance the lack of upcoming maturities from existing ABS issuers, with total issuance volume remaining at around C$11.5bn - split among credit card ABS (C$6bn), auto and equipment ABS (C$2bn), CMBS .......

    News Round-up 10 February 2014

  • Legacy, new issue metrics diverging

    Legacy US CMBS market metrics continued improving last quarter, while several key indicators for new issuance trended negatively, according to Fitch's latest quarterly index for the sector. CMBS delinquencies fell by nearly 60bp last quarter and two percentage points on the year.

    "The continued steady pace of loan resolutions should position CMBS delinquencies to finish 2014 below 4%," comments Fitch .......

    News Round-up 7 February 2014

  • Servicer rankings released

    The Mortgage Bankers Association has released its year-end ranking of commercial and multifamily mortgage servicer volumes. At the top of the list as of 31 December is Wells Fargo, with US$434.4bn in US master and primary servicing, followed by PNC Real Estate/Midland Loan Services with US$369.6bn, Berkadia Commercial Mortgage with US$235.4bn, KeyBank National Association with US$169.7bn and GEMSA Loan Services .......

    News Round-up 7 February 2014

  • Lack of supply hits Euro CMBS

    Activity has slowed in the European secondary CMBS market as paper has become harder to come by. While demand remains strong and a number of BWICs have circulated, the search for supply has led to the return of OWICs in the market.

    "There has been less buying interest from clients this week and the market has been quieter. We have .......

    Market Reports 7 February 2014

  • MS CMBS vet moves on

    Jim Chung has joined Bridge Investment Group Partners as cio for the ROC Debt Strategies Fund. He is based in New York and will focus on CMBS, having previously spent 13 years at Morgan Stanley.

    .......

    Job Swaps 7 February 2014

  • MBS funds outperform

    Hedge fund performance was negative in January, falling by an average of 0.6%, according to eVestment figures. However, the industry broadly outperformed global equity markets in what was a very difficult month, driven by increased uncertainty in emerging markets.

    Credit strategies also posted negative returns in January, the second month in the last six where performance was down. Directional strategies .......

    News Round-up 7 February 2014

  • CMBS pay-offs drop

    The percentage of US CMBS loans paying off on their balloon date stood at 71.3% in January, according to Trepp. This marks the second straight month in which the rate declined - from 76.5% in December and 81.3% in November - and is slightly above the 12-month moving average of 68.3%.

    By loan count as opposed to balance, 63.2% of .......

    News Round-up 7 February 2014

  • Larger loans set for liquidations

    US CMBS special servicers are anticipated to increase the rate at which they liquidate loans over the coming months before interest rates rise. Whereas the focus has been on liquidating smaller-balance loans over the last several years, special servicers are now expected to begin selling larger loans with greater regularity.

    CMBS analysts at Bank of America Merrill Lynch suggest that .......

    News Round-up 6 February 2014

  • CMBS BWIC volume builds

    BWIC volume continued to grow in the US CMBS market yesterday, reaching around US$450m for the session. SCI's PriceABS data shows price talk or cover prices on 70 unique tranches as generic spreads were mostly unchanged.

    More than half of the bid-list supply consisted of legacy fixed mezz securities and there was a US$42m list of AJs .......

    Market Reports 6 February 2014

  • Liquidation benefit?

    Bulk sales key to CMBS delinquency rate and investor fortunes

    The US CMBS delinquency rate has been falling month after month since last summer. The recent CWCapital REO auction and note sale will help to fuel that trend and is expected to spark further bulk liquidations, with a mixed impact on investors.

    The CMBS delinquency rate peaked at 10.34% in July 2012, but has fallen consistently over the last eight .......

    News Analysis 6 February 2014

  • Eighth straight drop for CMBS delinquencies

    The Trepp US CMBS delinquency rate decreased by 18bp to 7.25% in January, marking the eighth straight month of improvement. The decrease can be attributed to the almost US$1.3bn in previously delinquent loans that were resolved with losses over the course of the month.

    By removing these delinquent loans from the numerator, the rate saw 24bp of improvement. Loans that .......

    News Round-up 5 February 2014
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