CMBS

  • Multifamily fundamentals continue to improve

    The ongoing decline in US home ownership rates is benefitting CMBS backed by multifamily properties, according to Moody's.

    "US home ownership has declined to near-record lows over the last five years because of the financial crisis and will remain low," comments Jay Rosen, a Moody's vp - senior analyst. "The decline is credit positive for multifamily CMBS because fewer owners .......

    News Round-up 19 April 2013

  • Single surge

    Single-borrower CMBS sees heavy Q1 issuance

    At around US$9bn, US single-asset/single-borrower CMBS issuance in the first quarter almost equalled the total for all of 2012. However, it remains to be seen whether that pace of issuance can be maintained and what the effect will be on the conduit CMBS sector.

    Historically low interest rates have been a key driver of these single-borrower deals. Tad Philipp, Moody's .......

    News Analysis 19 April 2013

  • Farallon pay-down welcomed

    The US$1.6bn Farallon Portfolio loan, securitised in four separate CMBS, has paid off. The pay-down has resulted in meaningful increases in credit enhancement levels for the related deals, which is expected to trigger rating agency upgrades.

    The Farallon Portfolio was one of the more complicated loans securitised during the 2005-2008 era, consisting of 45 notes (senior and subordinated), with fixed- .......

    News 18 April 2013

  • Wave of liquidations hits LBUBS 06-C7

    A recent spate of loan liquidations has wiped out nearly nine classes of the LBUBS 2006-C7 CMBS. The combined losses from the eight liquidations totals US$130m, equating to an average 80% severity, according to Barclays Capital CMBS analysts.

    One of the loans backing the transaction that liquidated recently is the US$86m Arizona Retail Portfolio, whose remaining four shopping centre properties .......

    News Round-up 18 April 2013

  • REIT acquisition moves closer

    Annaly Capital Management and CreXus Investment Corp have announced the final results of the tender offer whereby Annaly offered to purchase those share of CreXus which it does not already own (SCI passim). Annaly will purchase 55,225,336 shares for approximately US$720.8m.

    The shares are to be purchased through a newly formed subsidiary, dubbed CXS Acquisition Corporation. The shares purchased through .......

    Job Swaps 18 April 2013

  • Pre-wired flexibility

    Intu CMBS could have broader attraction

    The recent £800m Intu (SGS) Finance 2013 series 1 transaction represents a watershed in UK CMBS as it uses a complex legal structure to achieve a commercially simple end result. Indeed, it is hoped that the issue's success will tempt other real estate companies that moved into unsecured debt post-financial crisis back to the CMBS market.

    The Intu deal, which .......

    News Analysis 18 April 2013

  • Trio recruited for CMBS lending platform

    Arbor Commercial Mortgage has added three new svps to its CMBS and syndication platform. Barbara Duka, Peter Ginsberg and Richard Bianchi will each be based in the firm's New York office.

    Duka joins as svp of CMBS and syndication credit and will work closely with head of CMBS finance and distribution Todd Hirsch. She spent 14 years at S&P overseeing .......

    Job Swaps 17 April 2013

  • NAIC changes to hit Alt-A, subprime

    The NAIC recently proposed changes to its modelling process for insurance company holdings of RMBS and CMBS positions. The changes aren't expected to affect most zero-loss designation bonds, but are likely to reduce NAIC price points for securities forecasted to take a loss in at least one of its economic scenarios.

    NAIC is proposing to use the risk-free US Treasury .......

    News Round-up 17 April 2013

  • Guilty plea for ex-Credit Suisse md

    Former Credit Suisse md and global head of structured credit Kareem Serageldin has pled guilty to conspiring to falsify the books and records of Credit Suisse before US District Judge Alvin Hellerstein. Serageldin was extradited from the UK to face charges that he fraudulently inflated the prices of asset-backed bonds in Credit Suisse's trading book in late 2007 and early .......

    Job Swaps 17 April 2013

  • APAC outlook remains stable

    Fitch reports that the Asia Pacific structured finance transactions it rates were mostly affirmed in the first quarter, with Japan being the only country that witnessed downgrades. Japan saw 11 tranches from four CMBS downgraded during the quarter, all from already distressed levels (triple-C and below).

    Australia saw 256 affirmations from 73 transactions in 1Q13, most of which were from .......

    News Round-up 17 April 2013

  • Macro weakness skews rating transitions

    By end-2012, only 1.37% by original issuance volume of European structured finance notes outstanding in mid-2007 had defaulted, according to S&P's latest quarterly ratings transition study.

    "Consumer-related securitisations in particular have seen solid credit performance through the crisis, with a cumulative default rate since mid-2007 of only 0.04%," confirms S&P credit analyst Arnaud Checconi. "In addition, we estimate that more .......

    News Round-up 16 April 2013

  • Stuy Town settlement approved

    The US$68.7m Stuyvesant Town-Peter Cooper Village settlement (SCI 3 December 2012) was approved by the New York State Supreme Court last week, clearing one of the last remaining hurdles to the eventual liquidation of the property that is securitised in five CMBS. According to Barclays Capital, no tenants objected to the settlement and only five out of the 27,500-person class .......

    News Round-up 16 April 2013

  • Euro CMBS yet to benefit legacy loans

    The recent resumption of European CMBS new issuance is yet to benefit the vast majority of legacy loans, which continue to face long-term refinancing and repayment issues, according to S&P's latest European CMBS monthly bulletin. Current interest in CMBS new issuance has instead focused on certain loans that show stable performance and strong fundamentals.

    "These newly issued transactions have mainly .......

    News Round-up 16 April 2013

  • Cherryland reversal 'credit positive'

    The Michigan Court of Appeals last week upheld the constitutionality of the Nonrecourse Mortgage Loan Act, reversing its surprising December 2011 decision - known as the Cherryland case - that prompted passage of the act in March 2012 (SCI 5 April 2012). Moody's notes in its latest Credit Outlook publications that the ruling is credit positive for US CMBS because .......

    News Round-up 15 April 2013

  • CMBS late-pays inch up

    CMBS late-pays rose by 2bp in March to 7.63% from 7.61% a month earlier, according to Fitch's latest index results for the sector. This is the first time in 10 months that overall delinquencies have risen.

    CMBS loan resolutions edged out new additions to the index, but a drop in new issuance volume failed to keep pace with the run-off, .......

    News Round-up 15 April 2013

  • MLTV reaches 'inflection point'

    An analysis of a new database of conduit and large loans included in US CMBS shows that the metrics employed by Moody's are effectively identifying credit risk in CMBS, the agency says. It notes that the Moody's loan-to-value (MLTV) measure - which reflects the percentage of a property's value that is mortgaged - has reached an inflection point.

    Unlike the .......

    News Round-up 12 April 2013

  • Secondary CMBS reacts to primary pricing

    US CMBS new issue spreads have widened in recent weeks with growing investor concern about high premium prices and early returns of principal. Legacy super seniors reset yesterday, however, tightening by 1bp to 2bp.

    "This week investors learned that it was not only high quality legacy paper getting strict scrutiny. Spreads on new issue last cashflow triple-A paper reset this .......

    Market Reports 12 April 2013

  • Pair promoted to CMBS co-heads

    RBS Securities has named Todd Jaeger and Jeff Wilson as co-heads of CMBS trading for the Americas. They are based in Stamford, Connecticut and report to Adam Siegel and David Cannon, co-heads of ABS, RMBS and CMBS trading for the region.

    Jaeger has been at RBS for six years, with experience in CMBS synthetic trading and the cash market. He .......

    Job Swaps 12 April 2013

  • Management outsourcing proposal put forward

    Annaly Capital Management is seeking shareholder approval to enter into a management agreement with Annaly Management Company. Under the agreement, Annaly Management Company would assume all management responsibilities for Annaly Capital.

    The proposal would see Annaly Capital pay Annaly Management Company an annual fee of 1.05% of Annaly Capital's stockholder's equity, while the manager would be responsible for paying all .......

    Job Swaps 11 April 2013

  • US CMBS picks up pace

    US CMBS secondary supply yesterday more than doubled the levels observed on Monday. Total BWIC volume stood at US$233m, with SCI's PriceABS data showing a slew of 2004-2006 vintage paper, as well as more recent Freddie Mac tranches.

    "Generic CMBS spreads are unchanged on the day. In terms of supply, legacy fixed bonds - the majority of which .......

    Market Reports 10 April 2013

  • CPPI inches up

    The Moody's/RCA Commercial Property Price Indices (CPPI) national all-property composite index increased by 0.5% in February from its January level. The index's two components - apartment and core commercial - increased by 1.3% and 0.2% respectively for the month.

    This month the CPPI report focuses on the relationship between metropolitan area price performance and loan losses since 2007. "There was .......

    News Round-up 10 April 2013
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