CMBS

  • Euro CMBS gaining ground

    European CMBS appears to be slowly gaining some traction after a quiet period. Trading levels are steady, with buyers starting to return to the market.

    "It has been a little quiet lately, but that might now be changing. We are starting to see a bit more activity and I think things are going to slowly start trading up," reports one .......

    Market Reports 26 July 2013

  • Low Euro CMBS loan repayments forecast

    European CMBS loan repayment rates dropped to 25% in 2Q13 and will remain low in 3Q13, Moody's predicts in a new special comment. The 24 loans - totalling €2.6bn - with scheduled original maturity dates in 2Q13 had a low repayment rate, as signalled by both the higher Moody's LTV ratios and lower Moody's debt yield projected for these loans .......

    News Round-up 26 July 2013

  • Cross-asset movement

    Rising rates rearrange relative value

    Rising interest rates in the wake of the Fed's tapering proposal have profoundly affected cross-asset relative value. While investors may consequently choose to move down the capital structure within CLOs, interest in CMBS is also expected to increase.

    US CLO triple-A spreads have not moved much recently as three-month Libor has been largely steady. Movement has been much more dramatic .......

    News Analysis 26 July 2013

  • CMBS supply up, spreads stagnant

    US CMBS secondary supply picked up from less than US$100m on Monday to almost US$500m yesterday. However, spreads flat-lined as economic data weighed on investors' minds.

    "The day started out promisingly, with morning deal sheets pointing to tighter spreads among legacy super seniors, AMs and AJs. Disappointing US manufacturing data took the wind out of the sails of the CMBS .......

    Market Reports 24 July 2013

  • CTL criteria updated

    S&P has updated its methodology and assumptions for rating credit-tenant lease (CTL) transactions. The criteria apply globally to CMBS comprised of either one (single tenant) or a pool of CTL loans and similar exposures, where the transaction is rated based primarily on the credit risk of the underlying property's credit tenant. They can also apply to other types of transactions .......

    News Round-up 24 July 2013

  • Cerberus grows German holdings

    Cerberus Capital Management affiliates have acquired two portfolios of German real estate properties: the Phoenix portfolio of nine shopping centres formerly owned by Wells Fargo; and the Monsoon portfolio of ten retail properties, which secures the Countrywide Kaufland loan securitised in EPIC Drummond (see SCI's CMBS loan events database).

    The Phoenix portfolio includes a combined floor space of .......

    News Round-up 22 July 2013

  • No rating impact from REIT merger

    Spirit Realty Capital and Cole Credit Property Trust II have merged to create a publicly traded triple-net-lease REIT, with the combined company taking on the Spirit Realty name. Moody's has confirmed that the move will not result in the downgrade of the Spirit Master Funding Series 2005-1, Spirit Master Funding II Series 2006-1 and Spirit Master Funding III Series 2007-1 .......

    Job Swaps 22 July 2013

  • Multifamily list dominates CMBS session

    US CMBS BWIC volume more than doubled yesterday to US$857m. Spreads tightened slightly and SCI's PriceABS data shows a number of senior bonds which attracted covers during the session.

    GG10 Dupers were quoted yesterday at plus 163/160, having closed on Wednesday at plus 162. Legacy conduit fixed seniors, AMs and AJs were 1bp, 2bp and 4bp .......

    Market Reports 19 July 2013

  • Conduit CMBS standards 'slipping'

    Loan leverage and the share of interest-only loans in conduit CMBS reached new highs for the CMBS 2.0 market in 2Q13. With debt service coverage also moving downwards, Moody's says conduit loan underwriting quality is now similar to 2005 vintage loans and declining rapidly.

    "The credit lessons learned from the poorly underwritten loans in the peak CMBS 1.0 vintages had .......

    News Round-up 19 July 2013

  • CMBS production head named

    Greystone has appointed Robert Russell as head of CMBS production and md for the firm's Fannie Mae and Freddie Mac platform. He will be based in New York and report to Joe Mosley, executive md for Fannie Mae and Freddie Mac lending.

    It is a newly-created position in which Russell will coordinate the firm's production of CMBS loans and originate .......

    Job Swaps 19 July 2013

  • Mapeley work-out gains momentum

    Eight of the 20 properties securing the £162.3m Mapeley loan, securitised in the Deco 6 - UK Large Loan 2 CMBS, have been sold since the loan was accelerated and enforced a year ago (see SCI's CMBS loan events database). So far, the work-out process appears to have been relatively successful.

    The combined gross sales proceeds for six .......

    News Round-up 18 July 2013

  • Clean-up for LBUBS 07-C2 delinquencies

    The July remittance for LBUBS 2007-C2 indicates that US$773m of delinquent loans have been liquidated at an average 40% loss severity, wiping out nine outstanding mezzanine bonds and imposing a 10% loss on the AJ note. The spurt in liquidations was widely expected and follows an auction of the trust's delinquent loans by Orix (SCI 30 April).

    The gross proceeds .......

    News Round-up 18 July 2013

  • GRAND redemption due

    Each of the GRAND REF note issuers are expected to prepay in full tomorrow, followed by the redemption of the CMBS notes on the 22 July IPD. The move follows DAIG's successful IPO last week: the company is partially funding the repayment with an unsecured loan, which was contingent on generating IPO proceeds of at least €400m (see SCI's CMBS .......

    News Round-up 17 July 2013

  • Large CRE transfer agreed

    Commerzbank has agreed to sell its UK commercial real estate portfolio to a consortium comprising Wells Fargo and Lone Star Funds. The transaction includes €5bn in CRE loans as well as the relevant interest rate and currency hedging derivatives.

    Also included in the transaction is the entire operational business of Hypothekenbank Frankfurt - formerly Eurohypo - in the UK. The .......

    Job Swaps 16 July 2013

  • REO assets tipped for auction

    Only two properties securitised in US CMBS are set for a note sale via Auction.com in August.

    The first is the US$42.9m Tallahassee Mall securitised in CSFB1999-C1, which has been in REO since January 2011. The latest reported appraisal (from September 2010), pegged the value of the property at only US$4.5m.

    The loan was deemed non-recoverable in mid-2011 and the .......

    News Round-up 16 July 2013

  • REO sales drive late-pay decline

    Fitch reports that US CMBS late-pays declined by 19bp in June to 7.18% from 7.37% a month earlier, the lowest level since March 2010. The decline was fuelled by the sale of US$622m (in stated loan balance) of REO assets across 34 Fitch-rated transactions, mostly from 2005-2007 vintages. This compares with just US$262m in May.

    The June REO sales were .......

    News Round-up 16 July 2013

  • CMBS pay-offs dip

    The percentage of US CMBS loans paying off on their balloon date registered 58.5% last month, according to the latest Trepp pay-off report. This reading is one point below the May level of 59.5% and the second lowest of the year.

    The June pay-off percentage is slightly above the 12-month moving average of 57.4%. By loan count as opposed to .......

    News Round-up 12 July 2013

  • RBS novation confirmed

    Fitch confirms that there is no rating impact following the novation by RBS NV to RBS plc, ABN AMRO Bank and/or Bank Nederlandse Gemeenten with respect to the roles it covers across any European structured finance transaction. RBS plc notified the agency in May that, as part of the continuing transfers of business activities from RBS NV to RBS plc, .......

    News Round-up 11 July 2013

  • Hotels track apartment price rises

    The rise in full service hotel prices is keeping up with that in apartments, according to the latest Moody's/RCA CPPI report.

    Full service hotel prices have risen by 52.3% and apartment prices by 55.3% since 4Q09. In the 12 months ending 31 May, apartment prices rose by 12.9%, more than triple the 3.4% rise in the core commercial sector.

    Limited-service .......

    News Round-up 11 July 2013

  • Real estate debt platform prepped

    Brookland Partners is launching Brookland Financial, a new intermediary platform to connect parties in the real estate debt markets. The platform will act for both borrowers and lenders and is being led by Nassar Hussain, Brookland Partners founder and managing partner.

    Brookland Financial has access to two independent teams and can provide investors with a full debt arranging solution through .......

    Job Swaps 10 July 2013

  • Weak outlook for EMEA CMBS loan maturities

    While the number of EMEA CMBS loans coming due this quarter is once again large, only a few are expected to repay, according to Fitch's latest quarterly index report for the sector. Loan-to-value (LTV) levels are increasing, in some cases quite sharply. In parallel, many of the loans coming due are already in poor shape, the agency notes.

    "Ten loans .......

    News Round-up 10 July 2013
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