CMBS

  • Real estate group builds sales team

    Carlton Group has formed an international investment sales team to provide investment sales services to clients worldwide. The group will focus on Manhattan and major cities throughout the US and Europe, with a focus on assignments of US$100m or more.

    Carlton chairman Howard Michaels will lead the team with Carlton Hospitality president John Bralower and Javier Beltran, who runs Carlton's .......

    Job Swaps 17 September 2013

  • Further dip forecast for CMBS late-pays

    US CMBS late-pays fell by 10bp in August to 6.68% from 6.78% a month earlier, according to Fitch's latest index results for the sector. The agency notes that the delinquency rate is poised for another dip once an impending modification of the US$678m Skyline Portfolio loan is finalised (see SCI's CMBS loan events database).

    The Skyline Portfolio is .......

    News Round-up 16 September 2013

  • RMBS reshuffle targets trading focus

    Amherst Securities is changing its focus to concentrate more on facilitating day-to-day trading. To that end, Lidan Yang and Brian Landy will report directly to the non-agency and agency MBS desks, respectively, replacing departing head of RMBS strategy Laurie Goodman.

    Yang and Landy will be responsible for producing material for internal and external distribution with a greater focus on issues, .......

    Job Swaps 13 September 2013

  • Apartment prices take off

    Apartments in New York and San Francisco are the hottest property sector in major markets, each having topped its previous peak by more than 20%, according to the latest Moody's/RCA CPPI report. Conversely, core commercial properties in Los Angeles and Chicago lag well behind, more than 20% below their respective peaks.

    Los Angeles and Chicago commercial prices have each recovered .......

    News Round-up 12 September 2013

  • Intermediary initiative

    Nassar Hussain, managing partner at Brookland Partners, answers SCI's questions

    Q: How and when did Brookland Partners become involved in the CMBS market?
    A:     Brookland Partners has been lead financial adviser on over 25 CMBS transactions totalling in excess of €22bn since our launch in 2009. We act as financial adviser to government agencies, financial institutions, private equity firms, property companies and the vast majority of .......

    Provider Profile 12 September 2013

  • B-piece retention issues remain

    The re-proposed US risk retention rules (SCI 29 August) have been welcomed by CMBS market participants for eliminating the premium capture cash reserve account (PCCRA) provision. How risk retention for large loan and single-borrower deals should be satisfied remains unclear, however.

    The requirement that 5% of the fair value of a CMBS be retained for a period of five years .......

    News 11 September 2013

  • Bush Terminal sees second modification

    The Bush Terminal loan - securitised in GCCFC 2007-GG11 and CGCMT 2008-C7 - has been modified again, after superstorm Sandy devastated the buildings. The loan received a US$190m/US$110m A/B split modification in April 2012 (see SCI's CMBS loan events database).

    Damage from Sandy resulted in US$39m in initial insurance claims. According to the modification commentary, Schron recognised an .......

    News 11 September 2013

  • REC 6 insolvency to trigger copycats?

    An insolvency event has been declared for Alburn Real Estate Capital (REC 6), after the directors of the issuer determined "it is more likely than not" that the CMBS will be unable to pay its debts as they fall due. A number of other European CMBS deals are now expected to follow suit, with the aim of switching the waterfall .......

    News 10 September 2013

  • CMBS pay-offs dip

    The percentage of US CMBS loans paying off on their balloon date registered 72.1% last month, according to the latest Trepp pay-off report. This figure is down two points from 74.1% in July, which was the highest reading in almost five years. August's rate is the second highest level during that period.

    At 72.1%, the August pay-off percentage is well .......

    News Round-up 10 September 2013

  • CMBS loan liquidations down

    US CMBS loan liquidations totalled US$1.09bn last month, according to Trepp. This compares to July's US$2.05bn and the 12-month moving average of US$1.32bn.

    August loss severity came in at 40.9%, down from July's reading of 43.63% and below the 12-month moving average of 43.44%. The number of loans liquidated during the month was 90, which resulted in US$444.29m in losses .......

    News Round-up 10 September 2013

  • CMBS loss severity up

    The weighted average loss severity for all loans backing US CMBS that liquidated at a loss was 41.5% in 2Q13, up from 40.7% in the previous quarter, Moody's reports. Excluding loans with losses of less than 2%, the weighted average loss severity was 53.5%, up from 52.9% the previous quarter. Loans with losses of less than 2% account for 23% .......

    News Round-up 10 September 2013

  • CMBS recovery rate dips

    The recovery rate on liquidated US CMBS loans suffered somewhat of a set-back last quarter, dipping to 60.5% for 2Q13 compared to 71.4% in 1Q13, according to Fitch's latest quarterly index results for the sector. Thirty CMBS loans saw losses of 95% or more last quarter, with 16 of them seeing losses of 100% or more.

    CMBS loans in special .......

    News Round-up 9 September 2013

  • Conduit concerns for US CMBS

    US CMBS issuance has now reached US$56bn, surpassing the full-year issuance in 2012 of US$48bn. Conduit transactions account for about US$36bn of the total and S&P notes that although average credit metrics have held steady on a quarter-by-quarter basis they are riskier than a year ago.

    The rating agency says slipping loan standards will lead to higher eventual loss rates .......

    News Round-up 6 September 2013

  • Office rebound boosts UK CMBS

    An inflection point appears to have been reached in the UK secondary commercial property market, with office leading the way. The upturn in sentiment could result in several positive CMBS transaction outcomes.

    Deutsche Bank European CMBS analysts calculate that sales from UK CMBS office portfolio liquidations have averaged a 14% increase on their last valuations, with a net yield of around .......

    News 5 September 2013

  • REIT names new cfo

    AG Mortgage Investment Trust has appointed Brian Sigman as cfo, replacing Frank Stadelmaier who will continue to serve as a director. Sigman also becomes the REIT's principal accounting officer and treasurer.

    Sigman was previously cfo at Newcastle Investment Corp and served as md of Newcastle's external manager, an affiliate of Fortress Investment Group. Before joining Newcastle he was a senior .......

    Job Swaps 5 September 2013

  • CMBS delinquencies hit three-year low

    The Trepp US CMBS delinquency rate fell in August for the third consecutive month. The rate dropped by 10bp to 8.38%, the lowest reading in three years, and has now fallen by 69bp over the last three months and 175bp over the last year.

    About US$2.5bn of loans became newly delinquent in August, which was slightly higher than the July .......

    News Round-up 4 September 2013

  • STACR to receive NAIC designation?

    NAIC appears to have abandoned its proposal to alter the process used to derive ratings for RMBS and CMBS positions held by insurance companies, which would have reduced NAIC breakpoints for most bonds taking losses or interest shortfalls (SCI 17 April). The organisation is now said to be examining the accounting and reporting framework for Freddie Mac's recent STACR deal .......

    News Round-up 3 September 2013

  • Post-crisis tweaks strengthen Japanese CMBS

    Moody's reports that, for the first time since the 2008-2009 financial crisis, no Japanese CMBS loan defaults have been recorded for a six-month period. The agency notes in its latest 'Structured Thinking: Asia Pacific' publication that the default rate of its rated CMBS loan portfolio significantly improved to zero in 1H13 from 43% in 2012 and 56% in 2011.

    In .......

    News Round-up 3 September 2013

  • Euro CRE growth prospects 'weak'

    Financial conditions in many European countries will remain unsupportive of commercial real estate collateral value growth, says S&P. Another year of very weak or negative growth is expected, which will affect European CMBS transactions.

    Europe's five largest economies will all be impacted; despite signs of a slight pick-up in demand of good quality secondary real estate in the UK, values .......

    News Round-up 29 August 2013

  • Sales put GSEs on course

    Since announcing that the GSEs would reduce their less liquid holdings by 5% this year, at least six large non-agency BWICs have been brought to market (SCI passim). This has put them on course to achieve their reduction targets, although they may have begun with the better-performing tranches.

    The lists have totalled US$6.1bn so far, with Fannie Mae accounting for .......

    News 28 August 2013

  • More REO assets to be auctioned

    There will be US$322m of distressed US CMBS loans out for bid through Auction.com in the last weeks of August through September, including the office property at 401 E. Ocean Boulevard, which backs a US$22m loan in LBUBS 2007-C1. The loan has been in REO since November and a December appraisal pegged the value of the property at US$17m.

    Barclays .......

    News Round-up 28 August 2013
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