CMBS

  • Minimal losses seen in Canadian CMBS

    Canadian CMBS exhibit a low rate of default, with only 71 of the nearly 3,700 securitised loans either delinquent and/or transferred to a special servicer. This represents a 1.9% cumulative default rate, according to a Fitch study of 70 transactions totalling C$25.4bn.

    Of the 71 defaulted Canadian CMBS loans, 35 have not seen any losses, while nine additional loans saw .......

    News Round-up 11 October 2013

  • Due diligence guide published

    CREFC Europe has published its 'Due Diligence Guide on Real Estate in the UK'. The guide considers due diligence primarily in the context of a loan to be secured on UK real estate and provides an overview of the main issues that should be addressed.

    Peter Denton, incoming chairman of CREFC Europe, comments: "This guide will provide a starting point .......

    News Round-up 10 October 2013

  • CMBS spreads flat, supply up

    Generic US CMBS spreads were unchanged yesterday. BWIC supply remained restricted due to IMN's ABS East conference but did increase to over US$150m, with SCI's PriceABS data showing a number of covers from the session.

    For example, BACM 2006-6 A3 was covered at mid-102. The tranche was first covered in the PriceABS archive on 12 July 2012 at .......

    Market Reports 9 October 2013

  • Law firm adds CMBS pros

    Winston & Strawn has added Christine Spletzer and Bola Oloko to its capital markets real estate practice in New York. The practice includes an array of real estate transactions and CMBS.

    Spletzer has worked at Winston & Strawn before and joins from Paul Hastings. She focuses her practice on CMBS and has particular experience in mezzanine financing.

    Oloko was previously .......

    Job Swaps 9 October 2013

  • Retail property prices outperforming

    Retail properties continue to be the best performing US core commercial real estate sector, with prices increasing by 23.3% over the last 12 months, according to the latest Moody's/RCA CPPI report. The national all-property composite index increased by 1.2% in August, driven by a 1.7% increase in its core commercial component. Apartment prices nationally increased by 0.1% during the month.

    News Round-up 9 October 2013

  • High Q4 default probability predicted

    Moody's expects European CMBS loan repayment rates for loans maturing in 4Q13 to be no better than the four-quarter rolling average of 37%. The agency projects a high refinance default probability for 55% of the 31 loans - worth €2.3bn - that will mature in the fourth quarter, based on the increased number of loans with high Moody's LTV ratios .......

    News Round-up 9 October 2013

  • Validation tool enhanced

    Interactive Data has released a new set of transparency and workflow enhancements to its Vantage solution. The enhanced Vantage Price Validation Workflow module aims to enable buy- and sell-side firms to more efficiently manage their price review process, thereby reducing the operational cost of meeting current regulatory requirements.

    The module is designed to serve as a central hub for client .......

    News Round-up 8 October 2013

  • 2.0 structuring tool launched

    Lewtan has launched a structuring tool geared towards the 'securitisation 2.0' environment. Dubbed ABSNet Modeler, the firm says that the offering is unique due to the transparency of the cashflow waterfall and resulting output.

    The tool is designed to assist users at each step of the deal structuring process with advanced cashflow analytics to run deal, pool, tranche and loan-level .......

    News Round-up 8 October 2013

  • NewOak partners with risk specialists

    NewOak Advisors has formed a strategic alliance with Smith Regulatory Strategies (SRS). The alliance will combine NewOak's market expertise with SRS's risk management and regulatory compliance capabilities.

    The alliance will initially focus on Basel 3 risk-based capital compliance, including stress testing, asset valuation, risk assessment and model validation. The firms will also work together on bank-owned life insurance separate accounts .......

    Job Swaps 8 October 2013

  • London legal partners appointed

    Mayer Brown has added two securitisation partners to its banking and finance group in London. Richard Todd and David O'Connor join from Berwin Leighton Paisner and Allen & Overy, respectively.

    Todd has worked at Mayer Brown before, as well as at Lloyds, JPMorgan and VTB Bank. He specialises in trade receivables and auto loan ABS as well as RMBS.

    O'Connor's .......

    Job Swaps 7 October 2013

  • US shutdown slows Euro CMBS

    The European CMBS secondary market has been dominated by talk this week, with trading activity easing off slightly. Market sentiment is positive but no significant changes are expected until the US debt ceiling dilemma is resolved.

    "It has been quiet this week, ever since the US government shutdown on Tuesday. Last week and the week before were more active with .......

    Market Reports 4 October 2013

  • Conduit balloon payoffs highest in years

    The percentage of US CMBS conduit loans paying off on their balloon date reached 74.5% by balance in September, which is the highest reading since December 2008, says Trepp. It is more than two points higher than the 72.1% reading for August and well above the 12-month moving average of 63.9%.

    By loan count, 70.1% of loans paid off, which .......

    News Round-up 4 October 2013

  • Japanese CMBS, autos improve

    Japanese CMBS and auto loan ABS performance continued to improve in July and August, according to Moody's Japan. High job security is expected to keep performance trends stable.

    The CMBS default rate fell to 17.6% in August, down from 21.8% in July and down from 33.1% a year earlier. The annualised auto loan ABS default rate for July fell to .......

    News Round-up 4 October 2013

  • Bulk of EMEA CMBS loans coming due

    EMEA CMBS servicers are set for a busy month, according to Fitch. Of the 37 loans which the agency rates that are maturing in this quarter, 36 fall due in October.

    Fitch notes that around 75% of the loans due are highly levered, with LTVs above 80%. Timely repayment for those is unlikely and the agency expects 14 of the .......

    News Round-up 3 October 2013

  • RBA updates securitisation reporting templates

    The Reserve Bank of Australia (RBA) has released for consultation draft reporting templates for CMBS and ABS to be eligible for repo. The Australian Securitisation Forum notes that the new information requirements reflect the RBA's desire for more comprehensive information about the securities.

    The templates require transaction-level and security-level templates for CMBS and ABS and are comparable to those finalised .......

    News Round-up 3 October 2013

  • CMBS delinquencies dip further

    The Trepp US CMBS delinquency rate fell for the fourth consecutive month in September. The rate dropped 24bp from August to 8.14%.

    The delinquency rate is now at its lowest level for three years and is 185bp lower than it was one year ago. There were US$1.7bn in new delinquencies last month, a decline from US$2.5bn in August.

    US$1.9bn of .......

    Job Swaps 2 October 2013

  • CMBS starts week with steady session

    US CMBS BWIC volumes remained steady yesterday as spreads generally widened. Over US$200m was out for the bid, with SCI's PriceABS data showing a mix of names from the session and a number of covers.

    One of the trades from the session was the BACM 2005-2 A5 tranche, which was being talked at 80 at the .......

    Market Reports 1 October 2013

  • Multifamily origination expands

    Greystone has closed a CMBS transaction for US$38.75m on behalf of a suburban Cleveland-based multifamily property owner. The loan has a 10-year term, with only three years of interest at a rate of 2.35% over ten-year swaps. The firm says it closed the deal in 35 days and expects to close a number of additional deals before year-end.

    Launched earlier .......

    News Round-up 27 September 2013

  • Servicers switching strategies?

    With improving US commercial real estate fundamentals, commercial mortgage loan servicers have begun shifting gears to prepare for continued growth in lending. In particular, the industry has seen a number of mergers and acquisitions, as well as greater CMBS B-piece buyer participation.

    "Some servicers' business strategies are once again predicated on growth, as opposed to taking advantage of market distress," .......

    News Round-up 27 September 2013

  • Costly losses for German retail loans

    Performance has been weak for European CMBS loans secured by German retail properties. A Barclays Capital analysis of 69 securitised loans predicts total principal losses of €1.4bn for the affected deals, with an average loss severity of 26%.

    German retail properties back €5.3bn of loans across 27 European CMBS looked at by the Barclays Capital analysts. "Their performance has been .......

    News 27 September 2013

  • Servicer replacement approach outlined

    Fitch says it is increasingly being asked by new controlling class holders (CCH) to provide 'no downgrade letters' for the appointment of replacement special servicers, as losses continue to erode the control positions of legacy CMBS transactions. The agency notes that it will no longer provide individual rating confirmation letters with regard to these transfers as long as the transfer .......

    News Round-up 26 September 2013
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