CMBS

  • CRE prices continue to rebound

    Central business district office properties in major markets have performed the best of the office segments in the Moody's/RCA Commercial Property Price Indices since the January 2010 trough, increasing around 97%. Major market prices have recovered nearly all of their peak-to-trough loss, while non-major markets have recovered more than half of their loss.

    Growth in office prices in Manhattan has .......

    News Round-up 14 January 2014

  • Collaborative bid-list platform launched

    Trepp has launched a collaborative workflow solution to provide bid-list management, analysis and colour tracking for traders and other market participants. The offering is dubbed TreppTrade and is designed to help workgroups spend less time collecting data so they can focus on other tasks.

    TreppTrade features robust bond screening, team-oriented workspaces and powerful yield tables. The solution is designed to .......

    News Round-up 14 January 2014

  • Foundation for continued growth?

    The US CLO and CMBS sectors saw impressive issuance in 2013, as the recovery in the asset classes continued apace. European volumes, meanwhile, reflect the growing diversity of jurisdictions on offer across the region's ABS market.

    Last year proved to be impressive for US CMBS 3.0 issuance, with conduit volumes totalling US$53.1bn, a 65% increase from US$32.2bn in 2012. US single-borrower/single-asset .......

    News 14 January 2014

  • Insurer CRE participation polled

    Preliminary results for the CREFC/Trepp Portfolio Lender Survey of commercial mortgage investment performance within the insurance company sector have been released. The survey was used to gather previously unavailable industry data for use in assessing investment performance and general benchmarking purposes.

    The results indicate the continuation of the superior investment performance achieved by US insurance companies through allocations to commercial .......

    News Round-up 13 January 2014

  • Special servicer rankings released

    DBRS suggests that there is now enough data and performance history to control for the important differences across US CMBS special servicing portfolios. As such, the agency has put together a quantitative ranking of special servicer performance.

    Torchlight Investors comes top in the rankings, followed by ORIX Capital Markets, Midland Loan Services, Wells Fargo Bank and Situs Holdings. The results .......

    News Round-up 13 January 2014

  • CRE expectations surveyed

    US commercial property finance professionals are increasingly focused on how high and how quickly interest rates will rise, as well as how commercial and multifamily loan underwriters will react, according to the inaugural CRE Finance Council 2014 Outlook Survey.

    "Commercial real estate finance industry participants are watching for market reaction as the Fed begins its tapering programme of government bond .......

    News Round-up 13 January 2014

  • CMBS losses projected

    S&P has published its expected loss projections for the North American conduit-fusion CMBS transactions that it rates. The report addresses losses by transaction, vintage, property type and MSA.

    "Our estimates of projected losses focus on our observed performance of CMBS transactions over time," notes S&P credit analyst Barbara Hoeltz. "They incorporate up-to-date performance information provided by the master and special .......

    News Round-up 13 January 2014

  • CMBS resolutions to continue apace

    The US CMBS delinquency rate could fall by another two percentage points to below 4% by year-end, should the pace of resolutions continue and new issuance remain strong, according to Fitch. Delinquencies improved by roughly two percentage points in 2013, having started the year at 8% and expected to close it out at just under 6%.

    A continuation of the .......

    News Round-up 13 January 2014

  • US CMBS tightens further

    US CMBS spreads continued to tighten yesterday as bid-list activity grew. BWIC volume reached around US$219m, with a large number of 2.0 and 3.0 below-investment grade bonds circulating.

    SCI's PriceABS data shows a range of vintages out for the bid, with deals issued as long ago as 2005 and as recently as last year represented. Included among these .......

    Market Reports 10 January 2014

  • Underperformance for directional strategies

    Hedge funds gained an average of 1.2% in December and ended 2013 returning 9.2%, according to eVestment figures. In comparison, 2012 and 2011 returned 7.4% and -3.1% respectively.

    However, last year credit strategies posted their third lowest annual return (6.26%) since 1998, besting only 2011 (2.3%) and 2008 (-8.7%). "Performance was dragged down by directional credit strategies underperforming in the .......

    News Round-up 9 January 2014

  • CMBS pay-offs dip

    The percentage of US CMBS loans paying off on their balloon date hit 76.5% in December, a modest decline from the November rate of 81.3%, according to Trepp. Last month's pay-off percentage is well above the 12-month moving average of 67.9%, however.

    By loan count as opposed to balance, 74.6% of loans paid off in December, also a slight decline .......

    News Round-up 9 January 2014

  • CMBX.6 lessons learnt?

    CMBX.7 is expected to launch on 27 January. While its exact composition is yet to be confirmed, the index is predicted to compare favourably to CMBX.6 in terms of credit enhancement and JC Penney exposure - although credit metrics may point to slipping underwriting standards.

    Morgan Stanley CMBS strategists expect CMBX.7 to reference the 25 most recent CMBS 2.0 deals .......

    News 9 January 2014

  • Good start for Euro CMBS

    The European CMBS secondary market has made a positive start to 2014. SCI's PriceABS data shows several covers from yesterday's session, while one trader predicts that increased activity should drive spreads tighter in the coming weeks.

    "Last week was still fairly quiet as everyone returned to their desks, but this week has been better. There have been more .......

    Market Reports 9 January 2014

  • FINRA urged to revisit TRACE proposal

    SIFMA has submitted a comment letter to the SEC on FINRA's proposed rule change relating to TRACE reporting and dissemination of transactions in additional ABS (SCI 5 November 2013). The association requests that FINRA not implement this proposal and instead engage in further discussion with the industry as to how best to preserve ABS market liquidity and re-propose this proposal .......

    News Round-up 9 January 2014

  • Improving CMBS delinquencies continue

    The Trepp US CMBS delinquency rate dropped by 23bp to 7.43% in December, marking the seventh straight month of improvement. The delinquency rate ended the year 228bp better than where it stood at end-2012. Since reaching a peak level of 10.34% in 2012, it has dropped by 291bp.

    About US$1.3bn in previously delinquent loans were resolved with losses last month. .......

    News Round-up 7 January 2014

  • CMBX rally continues

    The CMBX index rallied for the sixth consecutive month in December, spurred by better than expected economic data, the Fed's tapering announcement and investor positioning for the roll into Series 7 at end-January. Indeed, the rally is expected to extend into early 2014.

    CMBX prices rose by an average of 1.46% in December, according to Morgan Stanley figures, compared to .......

    News Round-up 3 January 2014

  • Solvency revisions still strict

    EIOPA has recalibrated the proposed Solvency 2 spread risk charges for securitisations to increase differentiation between ABS asset classes (SCI 20 December 2013). However, securitisation remains heavily penalised under the current proposals, with the capital charges potentially making it more efficient to invest in the underlying assets than in a securitised bond.

    While proposed capital charges for some bonds are .......

    News 3 January 2014

  • CMBS liquidations inch higher

    US CMBS liquidation volume registered US$1.28bn in December, up slightly from US$1.21bn in November and in line with the 12-month moving average of US$1.18bn, according to Trepp. Of the loans liquidated, 90% fell into the greater than 2% loss severity category.

    Last month's loss severity came in at 50.36%, up from November's 48.1% and considerably higher than October's 38.58%. The .......

    News Round-up 3 January 2014

  • CRE CDO reorganised

    Collateral Management has been named successor collateral manager and successor advancing agent for Wrightwood Capital Real Estate CDO 2005-1. At the same time, servicing and special servicing rights for the CRE CDO have been transferred from Ares Commercial Real Estate Servicer to Trimont Real Estate Advisors and Torchlight Loan Services respectively.

    The move follows the transfer of equity interests in .......

    Job Swaps 2 January 2014

  • Euro ABS, MBS outlooks mixed

    After declining this year for the first time since 2008, European ABS volumes are expected to rise again in 2014. European RMBS volumes are anticipated to be broadly steady next year, while the growth seen in investor-placed European CMBS issuance could slow, according to S&P.

    Investor-placed ABS issuance reached about €20bn in 2013, down from €27bn in 2012. That is .......

    News Round-up 24 December 2013

  • NAIC changes 'mildly positive'

    The US National Association of Insurance Commissioners (NAIC) last week released its 2013 model results for RMBS and CMBS bonds owned by insurance companies, which will be used to determine their capital requirements in 2014. The 2013 valuation process incorporates improvements in underlying macroeconomic assumptions, especially for the most conservative scenario.

    Approximately 68% of RMBS experienced an increase in NAIC .......

    News Round-up 24 December 2013
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