CMBS

  • DRA/Colonial mod breaks new ground

    The US$742m DRA/Colonial Office Portfolio loan - split pari passu between the BSCMS 2007-PW17, BSCMS 2007-PW18 and MLMT 2007-C1 CMBS - has received an extension modification. The move is being hailed as a positive, given that sales from better-performing properties will be used to fund reserves.

    The loan was transferred to special servicing in August after occupancy declined due to .......

    News 14 January 2013

  • Office, retail late-pays eyed

    US CMBS delinquencies closed out 2012 with seven straight months of decline, while late-pays on office and retail loans remain an area of concern, according to Fitch's latest index results for the sector.

    CMBS delinquencies fell by 18bp last month to 7.99% from 8.17% a month earlier. In December, resolutions of US$1.7bn outpaced additions to the index of US$1bn.

    Additionally, .......

    News Round-up 14 January 2013

  • Apartments fuel CRE price rise

    A 1.2% rise in apartment prices drove a 0.4% increase in US CRE as a whole in November, according to the latest Moody's/RCA CPPI report. Apartment prices are expected to continue to increase over the next few years, although commercial prices will trend flat to down.

    Apartment prices have risen 10.6% over the 12 months to November and the sector .......

    News Round-up 11 January 2013

  • B-note bother forecast

    Further details have emerged on the resolution of the 110 East 42nd Street loan, securitised in WBCMT 2007-C33, which had been modified via an A/B note split. At the loan's retirement, the B-note failed to recover any principal (see SCI's CMBS loan events database), serving as a warning to the wider market.

    The US$90m loan - secured by .......

    News 10 January 2013

  • Time out for US CMBS rally?

    US CMBS secondary spreads slowed their march into tighter territory yesterday, with some tranches even widening slightly. BWIC volume for the sector stood at around the US$300m mark, with SCI's PriceABS data showing 111 CMBS line items.

    "For each of the first four days of 2013, the CMBS market saw spreads fall smartly. On Tuesday the market took a time-out .......

    Market Reports 9 January 2013

  • IRET Portfolio watchlisted

    Morningstar has added the US$123m IRET Portfolio loan, securitised in the CGCMT 2006-C5 CMBS, to its watchlist due to a decrease in DSCR and occupancy. Two of the nine properties in the pool are occupied by single tenants, with lease expirations for the largest tenant in each property fairly well-staggered over the next few years.

    The portfolio was appraised for .......

    News Round-up 9 January 2013

  • CMBS pay-offs dip

    Trepp reports that last month 54.5% of CMBS loans reaching their balloon date paid off, compared to 62.6% in November. Despite the fall off, the December rate remains well above the 12-month moving average of 47%.

    By loan count as opposed to balance, 68.5% of loans paid off in December. On this basis, the pay-off percentage reached its highest level .......

    News Round-up 8 January 2013

  • CMBS loss severities decline

    Average US CMBS loss severity ended up at 37.06% last month, or 516bp lower than November's 42.22%, according to Trepp. December liquidations stood at US$1.33bn, relative to the 12-month moving average of US$1.39bn.

    The 119 loan liquidations in December resulted in US$491.4m in losses, with the average loss severity dipping below the 12-month moving average of 40.16%. The loan workout .......

    News Round-up 7 January 2013

  • Trading pick-up predicted for CMBX 6

    Markit CMBX Series 6 is due to launch on 25 January (SCI 8 August 2012), featuring a new sub-index. Given increased demand for a transparent hedging tool referencing newer CMBS issuance, the index is expected to be actively used by both issuers and investors.

    CMBX 6 will comprise six sub-indices - AAA, AS, AA, A, BBB- and BB - each .......

    News 7 January 2013

  • CMBS AJs lead market restart

    The US CMBS secondary market has been among the quickest to start up in 2013. Yesterday's session was particularly notable for the volume of AJ paper circulating, with SCI's PriceABS data showing 35 CMBS AJs among the session's 120 line items.

    AJ CMBS had also dominated Wednesday's session and some of the names out yesterday - such as WBCMT .......

    Market Reports 4 January 2013

  • Titan property sales positive

    The multifamily properties securing Titan Europe 2006-2's Petrus loan have been sold. The buyer and sales price have not been disclosed, but the price is understood to be in excess of the amounts outstanding under the loan and is a better-than-expected outcome, helping to reduce expected principal loss for the CMBS.

    CMBS analysts at Barclays Capital expect note that the .......

    News 4 January 2013

  • Fresh CMBS loan maturity wave

    CMBS loan maturities continue to pose challenges in Europe. The latest Fitch index shows 36 loans coming due in 1Q13, with refinancing for most looking unlikely.

    Of those 36 loans, 35 mature this month alone. "22 maturing loans have a Fitch loan-to-value ratio above 80%, making refinancing doubtful," says associate director Mario Schmidt. "For the 13 of these CMBS loans .......

    News Round-up 3 January 2013

  • Sale agreed for large CMBS loan

    A sale agreement has been reached for the largest loan backing TITN 2007-CT1X. A sale agreement for the €261.6m Xanadu loan has now been entered into and the property sale is expected to be completed by 18 April.

    Xanadu accounts for around 30% of TITN 2007-CT1X. The base purchase price for the loan sale is just over €180m and the .......

    News Round-up 2 January 2013

  • Euro CMBS in restructuring first

    The €4.3bn GRAND transaction, the largest CMBS ever issued in Europe, has been restructured. Unusually, it has been implemented by a solvent scheme of arrangement, which is a first for a CMBS restructuring.

    .......

    News Round-up 24 December 2012

  • Law firm adds SF trio

    Cadwalader, Wickersham & Taft has elected new partners, including a trio of structured finance specialists. Cheryl Barnes and David Burkholder each become capital markets partners, while Holly Marcille Chamberlain becomes corporate partner.

    Barnes has more than a decade of experience in securities and structured finance and specialises in mortgage pass-throughs and REMICs. She is based in Washington, DC.

    Burkholder concentrates .......

    Job Swaps 24 December 2012

  • Mixed outcomes for EMEA CMBS

    The total number of EMEA CMBS loans in special servicing declined in November, according to Moody's, as five loans left special servicing and three loans were newly transferred. At the end of the month, 145 loans were in special servicing across the large multi-borrower and single-borrower transactions monitored by the agency.

    Two loans entered special servicing due to non-payment at .......

    News Round-up 20 December 2012

  • Stress tests underline ratings resilience

    Fitch says that stress tests it conducted across a range of structured finance asset classes globally shows that its ratings would be resilient in the face of further stress. The tests suggest that the extent of macroeconomic stress that would be required to result in severe multiple category downgrades to its triple-A ratings is very remote. In many instances, the .......

    News Round-up 19 December 2012

  • Asian attraction

    Yield available, although challenges remain

    The structured finance markets in Asia face significant constraining factors in 2013. A preference for covered bonds will limit RMBS issuance on the mainland, while deal volume in Japan and Australia is expected to be flat to lower, with demand continuing to outstrip supply.

    Gregory Park, managing partner at Northstone Peak, notes that the structured finance market in Asia remains .......

    News Analysis 19 December 2012

  • Rally drivers

    US ABS recovery subject to potential shocks

    The US ABS market rallied strongly in 2012, with CLO and CMBS issuance volumes in particular surprising many. A substantial recovery is anticipated in most areas next year, although this remains subject to potential fiscal and regulatory shocks.

    "Across the spectrum of securitised products, 2012 has turned out to be an impressive year for investors, with substantial double-digit returns - .......

    News Analysis 18 December 2012

  • Not giving in

    Solid 2013 anticipated for European securitisation

    The European securitisation market has been dominated by regulatory pressures, but - as participants become more comfortable with the changes being imposed - secondary market rallies have made primary issuance increasingly attractive. Supply in 2013 is expected to be broadly steady, with issuance anticipated right from the start of the year.

    Kevin Ingram, partner at Clifford Chance, believes that while .......

    News Analysis 18 December 2012

  • Loan-level regulatory implications noted

    Opinion is divided among market participants as to whether the ECB and Bank of England's loan-level data requirements will bring meaningful benefits for investors and whether such benefits outweigh the cost to originators of providing this information in the appropriate formats, according to Reed Smith in a recent client memo. While increased compliance costs are a disincentive to ABS issuance, .......

    News Round-up 18 December 2012
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