CMBS

  • 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

  • Special servicer changes examined

    As US CMBS write-downs increase, shifting control higher up the structure, the number of special servicer changes is rising. The way distressed loans are handled will, in turn, change - impacting bond cashflows at both ends of the capital stack.

    About half of the 100-odd changes in special servicers that have occurred over the past two years have been on .......

    News 9 April 2013

  • CMBS pay-offs inch lower

    The percentage of US CMBS loans paying off on their balloon date registered 56.6%, according to the Trepp March pay-off report. This is about five points lower than February's 61.8% level, but well above the 12-month moving average of 50.9%.

    By loan count as opposed to balance) 63.2% of loans paid off. The 12-month rolling average on this basis is .......

    News Round-up 5 April 2013

  • Data integrity key to non-core divestments

    A common trend is emerging in loan book audits executed on behalf of asset purchasers in Ireland and Spain, according to Rockstead - the significant level of data integrity breaches. The firm says this problem could be easily overcome by the lender embedding data integrity within their servicing operations long before divestment becomes a reality.

    Rockstead notes that the first .......

    News Round-up 4 April 2013

  • Up-tick in note sale activity forecast

    CMBS note sale activity via Auction.com is expected to pick up this month, with four separate commercial property auctions scheduled. An estimated 68 properties securitised in CMBS are out for bid, accounting for about US$460m in outstanding balance.

    The largest among these is the Corridors I & II property, part of the US$39m TAG portfolio securitised in LBUBS 2005-C5. The .......

    News Round-up 4 April 2013

  • Rating agency adds CMBS quartet

    Kroll Bond Rating Agency has added four analysts from Morningstar to its CMBS group. Steve Kuritz joins as senior director, Laura Shannon and Bill Peterson become directors and Mike Haas joins as associate.

    All four will be focusing on surveillance and are located in a new office in Horsham, Pennsylvania. They will report to Eric Thompson, md and head of .......

    Job Swaps 4 April 2013

  • CMBS defaults trending down

    The stabilisation trend continues for US CMBS, with new defaults falling to their lowest levels since 2008 when 364 loans totalling US$3.2bn defaulted. According to Fitch's latest annual loan default study, CMBS defaults fell for the third year in a row in 2012, coming in 46% lower than in 2011 and 67% off the 2010 peak.

    "Commercial real estate loan .......

    News Round-up 4 April 2013

  • CMBS loss severity dips

    The number of US CMBS loans disposed with a loss in March was flat, while resolution volume fell by 12% on the basis of liquidated balance, according to Trepp. March average loss severity came in at 39.65% - 4.6 percentage points lower than February's level of 44.26%.

    March liquidations totaled US$849.2m, relative to the 12-month moving average of US$1.35bn. The .......

    News Round-up 4 April 2013

  • Downward pressure in store for Euro CMBS

    The second quarter is likely to start off on a difficult note for legacy EMEA CMBS, according to Fitch's latest quarterly index report for the sector. While the index itself stabilised at 46.9% in April - slightly up from 46.6% in January - downward pressure appears likely going forward.

    Fitch notes that 23 CMBS loans mature this month alone, with .......

    News Round-up 3 April 2013

  • Hotels push CMBS delinquencies higher

    The delinquency rate for US CMBS inched higher by 8bp in March to 9.5% after reaching the lowest level in a year the previous month, according to Trepp. Overall, the rate has fallen by 84bp since hitting its all-time peak of 10.34% at end-July 2012.

    Loan resolutions continued to drop in March, falling from just under US$1bn in February to .......

    News Round-up 3 April 2013

  • New fund formed

    Deer Park Road Corp has confirmed the launch of its new ABS fund (SCI 4 December 2012), dubbed Burgess Creek Fund. The new fund will focus on bonds with steady monthly cashflow and high-yield characteristics, along with capital appreciation potential. The firm says that a number of investors have already expressed a strong interest in the strategy.

    .......

    News Round-up 3 April 2013

  • Negative rating transitions 'less pervasive'

    Credit quality for global structured finance securities fell for the sixth consecutive year in 2012, again led by US RMBS, S&P reports. But downgrades were less pervasive and, with marginally improving global economic prospects and easing risks, the agency expects 2013 to mark a turning point for more stable credit performance.

    Going forward, S&P anticipates overall downgrade and default rates .......

    News Round-up 2 April 2013

  • RFC issued on affordable housing criteria

    S&P is requesting comments on its proposed methodology for rating US municipal affordable multifamily housing bond transactions. The proposed methodology will cover bonds supported by unenhanced affordable housing projects, federally subsidised projects and privatised military housing projects, as well as bonds backed by multifamily loan pools.

    The proposed criteria would affect no more than 450 rated issues, comprising about 160 .......

    News Round-up 2 April 2013

  • CMBS structuring proposals put forward

    A recent open letter from a group of European CMBS investors has largely echoed the CRE Finance Council's (CREFC) CMBS 2.0 proposals published last year. However, while the CREFC's proposals largely look to strike a compromise between market factions, the open letter is far more focused on investors' interests.

    Key differences concern information and disclosure, revenue extraction, servicers and special .......

    News 28 March 2013

  • Post-crisis peak for CMBS defeasance

    US CMBS loan defeasance in 2012 was higher than in any year since its peak in 2007. Defeasance of CMBS loans increased 21% from 2011, up to US$5.9bn, which Moody's attributes to a rise in liquidity options, a low-interest-rate environment and continued improvement in real estate fundamentals.

    "Defeasance dramatically reduces the risk of potential loss of principal and interest associated .......

    News Round-up 27 March 2013

  • AJs boost CMBS secondary volume

    Secondary trading flows across the US markets were quiet yesterday as the holiday-shortened week got off to a slow start. US CMBS did see more secondary activity than elsewhere. GG10 Dupers were quoted at swaps plus 134/132, having closed out last week at 135bp over.

    "Generic CMBS spreads are unchanged on the day. BWIC volume is light to start the .......

    Market Reports 26 March 2013

  • Holistic remedy

    Jacob Lyons, md at CR Investment Management, answers SCI's questions

    Q: How and when did CR Investment Management become involved in the CMBS market?
    A:     At the core of CR Investment Management's philosophy is the marriage of credit skills with the understanding and operation of underlying assets. Our focus is on real estate and shipping: both asset classes have similar dynamics and a similar client base.

    Also at the core of .......

    The Structured Credit Interview 26 March 2013

  • Widespread super-senior shortfalls unlikely

    The interest shortfalls that affected the super-senior class of MSC 2007-HQ13 are unlikely to be widespread across US CMBS conduit deals, Fitch suggests. The few super-senior classes that could be affected are from transactions that have a high percentage of already realised losses, a large amount of appraisal reductions and increasing loan concentration. Pools with a larger proportion of senior .......

    News Round-up 22 March 2013

  • CMBS 2.0 loan enters special servicing

    The US$13.6m 2100 Grand loan, securitised in CMBS 2.0 deal JPMCC 2011-C3, has been transferred to special serving. The move follows the bankruptcy of the Los Angeles-area office building's primary tenant, special effects firm Rhythm & Hues.

    CMBS analysts at Barclays Capital suggest that the firm's stay in bankruptcy may be short, as an auction for the property is set .......

    News Round-up 22 March 2013

  • Latest Coeur Defense ruling deemed credit positive

    The 28 February decision from the Versailles Court of Appeal is a positive development in the Coeur Défense case, says Moody's. The decision confirms the enforceability of security assignments of lease receivables even upon insolvency of the lessor.

    A decision from the same court last year was deemed credit negative (SCI 26 March 2012), but the latest ruling limits the .......

    News Round-up 19 March 2013

  • Canadian ABCP performance still strong

    Performance across Canadian ABCP remains strong, according to Moody's first quarterly report for the sector, which covers 4Q12. The rating agency has also launched a new web page dedicated to Canadian structured finance.

    Of the new transactions added to the Canadian ABCP programmes in the fourth quarter of 2012, 40% were used to finance residential mortgages, 34% financed auto loans .......

    News Round-up 19 March 2013
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