CMBS

  • REC 6 hit by low recovery projections

    Fitch has downgraded Alburn Real Estate Capital (REC 6)'s class A, B and C notes and affirmed the class D and E notes. The CMBS tranches are now all rated single-C, reflecting the insufficient residual collateral value in the transaction to repay the class A notes in full by their maturity in October 2016.

    Fitch estimates that 25% of the .......

    News Round-up 8 March 2013

  • CMBS pay-offs dip

    The percentage of US CMBS loans paying off on their balloon date has exceeded 60% for the fifth time in the last six months, according to Trepp's January pay-off report. In February, 61.8% of loans reaching their balloon date paid off - a decrease of about five percentage points from the January reading. The rate is well above the 12-month .......

    News Round-up 8 March 2013

  • Q4 CMBS loss severities analysed

    The weighted average loss severity for all loans backing US CMBS that liquidated at a loss was 40.8% in 4Q12, the same as the prior quarter, Moody's reports. From 1 January to 15 December 2012, US$15.8bn of CMBS loans liquidated, consistent with the same period from the previous year.

    The weighted average loss severity for all liquidated loans, excluding those .......

    News Round-up 8 March 2013

  • Smith Breeden director returns

    Carl Bell has returned to Smith Breeden Associates as a principal and senior portfolio manager. As a senior member of the firm's investment team, he will focus on the analysis and trading of structured credit, including non-agency RMBS, CMBS and ABS. Bell will also continue to serve on Smith Breeden's board of directors; he has served as an outside director .......

    Job Swaps 8 March 2013

  • ML-style GSE unwind advocated

    The FHFA has called for a new securitisation infrastructure in which Freddie Mac and Fannie Mae's presence is contracted (SCI 5 March). The Bipartisan Policy Center also published a report last month calling for the elimination of the GSEs over a five- to 10-year period, but any such wind-down could have significant ramifications for the securitised markets.

    Freddie Mac and .......

    News 6 March 2013

  • Early vintages abound in CMBS session

    Together with the more common vintages of 2005-2007, the US CMBS secondary market was yesterday awash with older-vintage paper. SCI's PriceABS data shows that tranches from a number of deals issued at the end of the last century were out for the bid, as were a number of names from 2000 and 2001.

    The oldest paper circulating yesterday was issued .......

    Market Reports 6 March 2013

  • Hotels lead CMBS delinquency rebound

    The Trepp CMBS delinquency rate fell by 15bp to 9.42% in February, reaching its lowest level in a year. Overall, the delinquency rate has fallen by 92bp since hitting a peak of 10.34% at the end of July 2012.

    February saw US$2.7bn in newly delinquent loans, which put about 48bp of upward pressure on the delinquency rate. This was slightly .......

    News Round-up 5 March 2013

  • Store closures weigh on CMBS

    The potential ramifications of retail store closures remain to be seen for US CMBS, Fitch notes.

    Abercrombie & Fitch, Best Buy, Sears, JC Penney, Office Depot and Barnes & Noble have recently announced store closures. A sizeable percentage of Fitch-rated CMBS have exposure to JC Penney, in particular.

    Other retailers - such as Wal-Mart, Costco, Dollar Stores and Forever 21 .......

    News Round-up 4 March 2013

  • EHA CMBS on review

    Moody's has placed on review for downgrade the ratings of 28 classes of notes in 14 CMBS secured by loans made to multiple English housing associations (EHAs). The action follows the recent downgrade of the UK's government bond rating to Aa1 with a stable outlook and the subsequent rating actions taken on 28 EHAs. The move reflects the increased default .......

    News Round-up 4 March 2013

  • CMBS resolution volume drops

    US CMBS resolution volume last month dropped by 16% on the basis of liquidated balance, according to Trepp. On the basis of loan count, February's total was less than half of January's level. February average loss severity ended up at 44.26%, 13bp lower than January's 44.39%.

    February liquidations came in at US$965.4m, relative to the 12-month moving average of US$1.36bn. .......

    News Round-up 4 March 2013

  • Intu CMBS unveiled

    Further details have emerged on the Intu Properties CMBS/corporate securitisation hybrid that will refinance the Opera Finance CSC 3 deal (SCI 28 February). The structure is being likened to a UK master trust in that it can issue up to £5bn long-dated fixed sterling notes in various series and has the flexibility to add more properties to the pool. The .......

    News Round-up 1 March 2013

  • Euro uncertainty buoys secondary ABS

    The double blow of Moody's UK downgrade and inconclusive Italian election has had a mixed impact on the European secondary ABS markets. While some sectors have softened, one trader reports that activity over the last week has actually noticeably increased.

    The tone of the UK prime RMBS sector, for one, softened over the week. Granite bonds now price about 0.4% .......

    Market Reports 1 March 2013

  • Special servicing entrants, exits aligned

    After peaking at US$91.7bn in 2010, the volume of specially serviced US CMBS loans fell to US$70.6bn, as of 31 December. This represents the smallest population since the run up in 2009, when the balance of specially serviced CMBS loans was US$74bn by year-end, Fitch reports.

    "Perhaps the most encouraging sign is how closely the volume of CMBS loans going .......

    News Round-up 1 March 2013

  • Secondary boost for Opera CSC3

    Intu Properties, formerly Capital Shopping Centres Group, has established a new debt funding platform dubbed the Secured Group Structure (SGS). The SPV will issue £1.15bn investment grade secured debt under the Itu Finance moniker.

    Intu intends to use the SGS to refinance four of its shopping centres, including the centres intu Braehead and intu Watford, which collateralise the Opera Finance .......

    News Round-up 28 February 2013

  • Further CMBS note sales due

    Two CMBS note sales are scheduled for March on auction.com. CMBS analysts at Barclays Capital have identified 24 loans securitised within CMBS trusts with US$158m of outstanding balance out for bid.

    The largest of these is the US$32.8m Belmont at Cowan Place, securitised in LBUBS 2006-C4, which has been in REO since Dec 2009. The latest appraisal, as of June .......

    News Round-up 28 February 2013

  • Junior paper joins CMBS jamboree

    The US CMBS secondary market saw around US$350m of BWIC volume yesterday. A greater variety of paper across the breadth of the capital structure was circulating than in the previous session.

    For example, a US$12.218m slice of BAYC 2005-2A A1 tranche was talked in the high-70s. In contrast, a US$2.8m piece of the LBUBS 2006-C7 G tranche was covered at .......

    Market Reports 28 February 2013

  • EMEA securitisation director enlisted

    Stafford Butt has joined Wells Fargo Securities' asset-backed finance and securitisation group. He joins as md responsible for EMEA structured products origination and execution.

    Butt joins from WestLB, where he was executive director, and has previously worked at Mitsubishi UFJ Group as head of EMEA securitisation. He is based in London and reports to Chris Pink.

    .......

    Job Swaps 28 February 2013

  • Range of special servicers broadening

    Increased issuance volume is bringing several new B-piece buyers to the US CMBS market. But Fitch notes that, unlike in previous years, they are not specially servicing these deals.

    Absent from the B-piece investors across the 81 CMBS transactions issued in 2012 were the so-called 'old cartel' of special servicers, made up of LNR Partners, CWCapital and C-III. These firms .......

    News Round-up 27 February 2013

  • CMBS losses moving up the capital stack?

    The composition of US CMBS loan liquidations appears to be shifting. Over the past three years, less than half of all liquidations each month were for loans sized between US$10m-US$50m, with special servicers largely liquidating loans sized US$10m or less. However, this month 69% of all liquidated loans had balances of between US$10m-US$50m.

    If this trend continues, it could lead .......

    News Round-up 26 February 2013

  • CMBS strategy head moves on

    Richard Parkus has joined Seer Capital Management as md and trader for its CMBS team. He will report to Tony Barkan and lead the firm's efforts in identifying CMBS and CRE debt investments.

    Parkus was most recently head of CMBS strategy at Morgan Stanley, having joined the bank two and a half years ago (SCI 18 August 2010). Prior to .......

    Job Swaps 26 February 2013

  • BRUNT 2007-1 restructuring agreed

    Noteholders last week agreed to the amendments to Bruntwood Alpha, as proposed by the borrower (SCI 1 February). The restructuring of the UK CMBS centres on a two-year extension of the notes and one of the two loans - the £229.2m B2000 loan - in exchange for which noteholders have been offered an increase in margin on a staggered basis.

    News Round-up 25 February 2013

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