CMBS

  • Call for servicing disclosure

    Kroll Bond Rating Agency (KBRA) has offered its views on special servicer conflicts of interest (see also SCI 12 March), suggesting that investor unease in this area could largely be resolved through better disclosure and transparency through industry-wide standardised reporting. Consequently, the agency says it is supportive of efforts by the Commercial Real Estate Finance Council to expedite enhancements to .......

    News Round-up 3 May 2012

  • Slow growth seen in CRE

    Slow growth in the US economy is translating into slow growth for the commercial real estate property markets, according to Moody's 1Q12 US CMBS and CRE CDO Surveillance Review.

    "We expect modest growth in 2012 in the commercial real estate markets, with a rise in investment activity and lending and stability in the market performance of the core property types," .......

    News Round-up 3 May 2012

  • CRE CDO boost

    The success of the New York Fed's MAX CDO sale last week has driven spreads tighter in the US CMBS market. Encouraged by the appetite the Fed witnessed, further CRE CDO sales are expected to follow.

    "The Fed's Maiden Lane III auction went pretty darn well. There was a ton of demand for the underlying collateral at the A4 level, .......

    Market Reports 2 May 2012

  • Maguire sheds CMBS properties

    Further details have emerged on the resolution of a number of CMBS properties sponsored by Maguire Properties (SCI 21 March). Maguire's 1Q12 financial results reveal that several assets have been sold or put into receivership so far this year.

    The US$470m Two California Plaza loan, which is securitised in GSMS 2007-GG10 and had been widely expected to enter receivership, was .......

    News 2 May 2012

  • CMBS delinquencies near record high

    The Trepp CMBS Delinquency Rate jumped by another 12bp in April to 9.8%, after increasing by 31bp the previous month. The highest rate on record is 9.88%, set in July 2011.

    Following two months of relatively modest loan loss resolutions at US$1bn or less, special servicer activity picked up in April, with over US$1.4bn in loss resolutions seen during the .......

    News Round-up 1 May 2012

  • CMBS auctions continue apace

    LNR has announced a US$254m sale of distressed assets through Eastdil Secured, comprising five loans securitised in CMBS trusts. Meanwhile, CWCapital has become the third special servicer to liquidate problem loans via large auctions.

    The five loans being disposed of via Eastdil comprise 801 North Brand and 700 North Central (securitised in GSMS 2005-GG4), Metropolis Shopping Center (BACM 2007-3), Hookston .......

    News Round-up 1 May 2012

  • Loss severities set to plateau

    Loss severities on US CMBS reached a high water mark of 45% last year, according to Fitch's annual loss study for the sector. The agency suggests that loss rates may plateau at this level, as they continue to stabilise over the course of 2012.

    A closer look at the numbers reveals that loss severities actually declined for most major property .......

    News Round-up 1 May 2012

  • Warner Building on watchlist

    Morningstar has added the US$292.7m Warner Building loan to its watchlist for occupancy concerns. The loan represents over 15% by unpaid principal balance of the JP Morgan Chase 2006-CIBC15 CMBS.

    For the six-month period ended 30 June 2011, the net cashflow DSCR was 1.27x, with net cashflow of US$11.8m. Occupancy was reported at only 47%, triggering the inclusion of the .......

    News Round-up 1 May 2012

  • Extensions dominate April maturity outcomes

    Fitch reports in its latest European CMBS bulletin that half of the loans that were originally scheduled to mature in April have had their maturity dates extended, increasing the overall proportion of extended loans to 40%. In total, around €9.5bn due since the onset of the global crisis remains outstanding in light of loan extensions, the agency says.

    The majority .......

    News Round-up 1 May 2012

  • Canadian CRE firm opens NY office

    Avison Young has opened an office in New York and recruited Arthur Mirante. Mirante joins the firm as principal and tri-state president and will be based in the new office.

    Mirante will work alongside Avison Young principal Greg Kraut and also join the firm's executive operating committee. He joins from Cushman & Wakefield, where he spent 20 years and was ceo and .......

    Job Swaps 30 April 2012

  • Four Seasons paydown expected

    Terra Firma has surprised the market by acquiring Four Seasons Health Care for a total consideration of £825m, which will be financed through a mix of equity and new debt. All of the existing debt will be paid in full under the deal. European asset-backed analysts at RBS suggest that this will result in a paydown of all TITN 2006-4FS .......

    News Round-up 30 April 2012

  • Atlantis restructuring resolved

    Brookfield Asset Management has settled with a group of B-note holders in connection with the restructuring of the US$2.6bn debt on the Atlantis Resort in the Bahamas. The move paved the way for Kerzner International to transfer control of the asset - together with another Atlantis resort in Dubai - to creditors.

    Hedge funds Canyon Capital and Trilogy Capital collectively .......

    News Round-up 30 April 2012

  • Q1 CMBS defaults analysed

    Fitch's US CMBS cumulative default rate for fixed-rate CMBS increased to 12.96% as of 1Q12 - a 25bp rise from year-end 2011. The agency expects that the pace of new defaults in 2012 will be relatively stable compared to 2011 levels.

    Newly defaulted loans for 1Q12 total US$1.7bn and number 155. Office loans, which led defaults in 2011, continue to .......

    News Round-up 30 April 2012

  • US multifamily heating up

    The rise in rents and occupancies in the US multifamily sector is close to the peak last seen before the beginning of the recession, according to Fitch. However, the agency believes that favourable demographics and limited supply should ensure that the market won't overheat.

    Based on Fitch's research and a recent Freddie Mac report, multifamily property prices have risen since .......

    News Round-up 30 April 2012

  • Stable outlook for APAC SF

    Fitch reports that Asia-Pacific structured finance saw few downgrades in 1Q12, with the negative rating actions being a direct result of criteria changes and continued poor recoveries in Japanese CMBS. Elsewhere, asset performance was broadly little changed and the outlook on most ratings in the region is stable.

    The agency made 264 affirmations, 29 downgrades and seven upgrades in 1Q12. .......

    News Round-up 27 April 2012

  • CMBX volatility returns

    Citi CMBS analysts report that volatility returned to the CMBX indices earlier this month, with eurozone fears weighing on most risk assets and news of the Maiden Lane III sale amplifying the selloff in cash and synthetic CMBS markets. They cite CMBX.3 AJ as an example, which experienced a 6.1% decline during the week ending 6 April 6.

    Contract volumes .......

    News Round-up 27 April 2012

  • Mixed fortunes for Euro, US primary markets

    A marked divergence in structured finance issuance trends over the past three months has been highlighted by the latest rankings in the SCI league tables for bank arrangers in the structured credit and ABS markets.

    The 1Q12 SCI league tables show that the US has seen a jump in issuance to US$78bn versus US$58bn in 1Q11, whereas Europe has seen .......

    News Round-up 25 April 2012

  • Maryland Multifamily on watchlist

    Morningstar has added the US$340m Maryland Multifamily Portfolio to its watchlist for near-term maturity. The senior debt is pari passu across two CMBS transactions - Greenwich Capital Commercial Funding Corp Series 2005-GG5 (accounting for US$200m of the deal) and GS Mortgage Securities Trust 2006-GG6 (US$140m).

    Net cashflow DSCR for the 12-month period ended 31 December 2011 ranged from 1.28x to .......

    News Round-up 24 April 2012

  • Significant loss for Gullwing loan

    The final property in the Gullwing Portfolio, securitised in the Eclipse 2007-1 CMBS, was sold on 18 April. Trepp expects the loan to be hit with a loss of more than 75% as a result.

    The Gullwing Portfolio is the tenth largest loan in ECLIP 2007-1A, with a current balance of £10.18m and an original maturity date of 17 January .......

    News Round-up 24 April 2012

  • Strong recovery seen in Japanese property sales

    Fitch expects the Japanese property sales market to remain active in 2012, based on a strong recovery in property sales in 2H11. The total value of properties sold from Fitch-rated Japanese CMBS portfolios throughout 2011 exceeded that of 2010 by ¥22bn and in 4Q11 alone was ¥76bn - the highest since 1Q09.

    "Although residential and office properties comprised the majority .......

    News Round-up 24 April 2012

  • Going soft?

    Changing underwriting standards pose CMBS threat

    The loans backing this year's US CMBS issuance exhibit looser underwriting standards than the market has become used to in the aftermath of the financial crisis. While such a loosening of standards should not be ignored, it does not appear to have the market overly concerned either, as investor appetite for the product remains strong.

    The underwriting standards typical of .......

    News Analysis 24 April 2012
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