CMBS

  • Compare and contrast

    Cross-sector relative value key for yield

    With QE3 driving down interest rates and spreads rallying to near-term tights, investors are being forced to work harder to find yield. The right portfolio composition is vital in this process, which is driving more investors to look at cross-sector relative value.

    "Investors are being forced to look at asset classes where they may not have traditionally invested. That is .......

    News Analysis 1 November 2012

  • CMBS loss severity holds steady

    US CMBS loss severity levels held steady month-over-month in October, according to Trepp. While cumulative losses remained practically equal to September levels, the cumulative balance before liquidation fell slightly.

    This led to a slight up-tick in severity, with October average loss severity ending at 42.51%, up from September's 37.87%. Liquidations hit US$1.36bn during the month, relative to the 12-month moving .......

    News Round-up 1 November 2012

  • CMBS drives bid-list volume

    US BWIC activity remained muted yesterday in the aftermath of Superstorm Sandy, with only CMBS supply exceeding expectations. Bid-list volume for the sector totalled almost US$150m, according to Trepp - about a third higher than that for the ABS and RMBS sectors combined.

    Spreads on legacy CMBS super-senior tranches edged 2bp-3bp wider during the session, while AM and AJ spreads .......

    Market Reports 1 November 2012

  • Positives seen in Euro CMBS

    The secondary European CMBS market has remained fairly active over the last week, albeit with a slight drop in selling from earlier in the month. Recent developments in respect of the GRAND restructuring proposal and the latest flurry of loan maturities (see SCI's loan events database for more) are being seen as positive for the sector.

    "Fewer BWICs .......

    Market Reports 31 October 2012

  • Special servicing trends underlined

    LNR Partners remains the largest US CMBS special servicer by outstanding balance, but its impact in terms of year-to-date loan liquidations has been even greater than is suggested by its market share. LNR also accounts for the largest average liquidated loan size so far in 2012.

    According to FTN Financial figures, LNR Partners accounts for 37% of CMBS loan liquidations .......

    News 30 October 2012

  • GRAND refi seen as distressed exchange

    Moody's has determined that the proposed restructuring of the German Residential Asset Note Distributor (GRAND) CMBS would constitute a distressed exchange for the class D, E and F notes. The move follows the release last week of final heads of terms for the refinancing and the launch of a lock-up solicitation (see SCI's loan events database for more).

    News Round-up 30 October 2012

  • Schron note sale scheduled

    An estimated US$500m of CMBS loans will be up for bid on Auction.com in November, spread across four auctions, according to MBS analysts at Barclays Capital. The note sales include five properties from the US$340m Schron Industrial Portfolio, securitised in GCCFC 2005-GG5, which carry an allocated loan balance of about US$45m.

    Six of the thirteen properties from the US$127m Trinity .......

    News Round-up 30 October 2012

  • NorthStar CMBS slammed

    Fitch has released an unsolicited comment on NorthStar 2012-1 Mortgage Trust, the first US CMBS backed by transitional collateral. The agency says that the US$351m transaction, which priced last week at a weighted average coupon of 163 over Libor, lacks sufficient credit enhancement to achieve triple-A ratings.

    While approached to provide feedback on NorthStar 2012-1, Fitch was ultimately not asked .......

    News Round-up 30 October 2012

  • Moorestown Mall watchlisted

    Morningstar has added the US$53.8m Moorestown Mall loan - securitised in LBUBS 2003-C7 - to its watchlist, due to a decline in the net cashflow debt service coverage ratio (NCF DSCR). The NCF DSCR fell below breakeven through 2Q12.

    For the six-month period ended 30 June, the NCF DSCR was 0.82, with net cashflow of US$1.7m. Occupancy was reported at .......

    News Round-up 29 October 2012

  • CMBS default rates stabilising

    The cumulative default rate for fixed-rate US CMBS increased slightly to 13.5% during 3Q12 from 13.2% the previous quarter, according to Fitch. New defaults for 3Q12 totalled US$2.2bn across 119 loans, compared with US$2.1bn across the same number of loans in Q2.

    The agency notes that the pace of new issuance - which increased almost three-fold compared to the start .......

    News Round-up 29 October 2012

  • CMBS prepay potential examined

    With continued improvements in US commercial real estate liquidity and price transparency, not only will many more problem CMBS loans begin to be resolved, but several other dynamics could also be set in motion. AM and cuspier AJ tranches are expected to outperform in such a scenario.

    One dynamic that could be set in motion is that because fewer loans .......

    News 26 October 2012

  • Auction results spell losses for CB13

    Two auctions were concluded on Auction.com yesterday for 12 of 16 properties collateralising the US$180.9m DRA-CRT Portfolio I loan, securitised in JPMCC 2005-CB13 (see also SCI's loan events database). The outcome indicates that the trust will see heavy losses as a result.

    According to MBS analysts at Barclays Capital, the auctions listed two packages: one consisting of seven .......

    News 25 October 2012

  • Mapeley swap disclosure confuses

    Confirmation that an interest rate swap remains in place for the Mapeley loan, securitised in the European Loan Conduit No. 22 CMBS, has surprised the market. The news has prompted questions about the loan's recent restructuring.

    European securitisation analysts at Deutsche Bank suggest that the recent confirmation of 20 January 2021 as the expiry of the swap appears to conflict .......

    News 24 October 2012

  • Improved outlook for Stuy Town loan

    The Peter Cooper Village/Stuyvesant Town Tenants Association has confirmed its intention to bypass the special servicer and buy the property. Such a move would be a considerable positive for CMBS bondholders, but the fact that any resolution would have to be negotiated with the servicer provides a sticking point.

    The US$3bn Peter Cooper Village & Stuyvesant Town loan is the .......

    News Round-up 24 October 2012

  • GIP loan restructured

    Finance documents for the £114.61m Government Income Portfolio loan, securitised in the Windermere XI CMBS, have been amended to reflect an extension of the final repayment date for up to three additional periods (SCI 10 August). The restructure is subject to the satisfaction of various conditions.

    The first extension of 12 months up to 15 October 2013 is subject to .......

    News Round-up 23 October 2012

  • EMEA, US CMBS divergence underlined

    Fitch has released a report highlighting that while the US CMBS market has shown continued growth over the past three years, its EMEA counterpart remains in limbo. US volumes remain barely 25% of the market's peak in 2007, but transaction numbers are nearly 50% of the 2007 level. In contrast, the EMEA market is likely to close its third year .......

    News Round-up 23 October 2012

  • Extra data for SF analysis platform

    Interactive Data will now provide independent evaluated prices on RMBS, ABS and CMBS for use within Intex's INTEXcalc service. The data can be used as inputs for a range of single security and portfolio analytics reports, offering transparency and speed in analysing securities.

    .......

    Job Swaps 23 October 2012

  • Above and beyond

    US CMBS market exceeds early expectations

    The US CMBS market has gone from strength to strength in 2012. Spreads have rallied consistently, while loan maturity outcomes have been better than anyone predicted at the start of the year.

    Increased interest in CMBS over the very short term has led to dramatic tightening in spreads. The Fed's introduction of QE3 has played a key role in this, .......

    News Analysis 23 October 2012

  • Low losses projected for EMEA, APAC SF

    With losses on global structured finance bonds largely clustered in US transactions, Fitch expects losses to be vastly lower on deals issued in the EMEA and APAC regions.

    "Losses on European deals will likely be low because of the strong performance of consumer assets, such as mortgages, credit cards and auto loans," comments Kevin Duignan, head of global structured finance .......

    News Round-up 22 October 2012

  • RBA preps loan-level requirements

    The Reserve Bank of Australia is introducing new eligibility criteria for RMBS in its operations. Issuers of RMBS will be required to provide more detailed information than is currently the case. The new information covers both transaction-related data as well as information on the underlying assets.

    Currently, the information required by the Reserve Bank for RMBS to be repo-eligible is .......

    News Round-up 22 October 2012

  • Isobel CMBS slammed

    Moody's notes that it would not have assigned a Aaa rating to Isobel Finance No.1, the first non-performing real estate loan portfolio CMBS transaction to come to market in EMEA (SCI 4 October). The agency says that the deal is not compatible with a Aaa rating because of the quality of the assets, its extra leverage due to swap termination .......

    News Round-up 18 October 2012
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