CMBS

  • DQT dips by 2bp

    The delinquency rate on loans included in US CMBS conduit/fusion transactions slipped by 2bp in January to 9.3%, according to Moody's Delinquency Tracker (DQT). The rate of loans in special servicing, as measured by Moody's Specially Serviced Loan Tracker, increased by 1bp in January to 11.98%.

    January was the 13th consecutive month that delinquencies in the US have been above .......

    News Round-up 21 February 2012

  • Keops liquidation progresses

    An update on the progress of the liquidation of the Keops portfolio, securitised in Juno (Eclipse 2007-2), has been released. A total of 147 properties have been sold for a price of Skr4.103bn, compared to a gross valuation of Skr4.242bn.

    The latest set of sales of 128 properties has been completed, with proceeds received for all of them. A contract .......

    News Round-up 21 February 2012

  • CRE CDO concentration risk highlighted

    US CRE CDO delinquencies began the year higher primarily due to maturity defaults, according to Fitch's latest index results.

    CRE CDO late-pays rose in January to 13.2% from 12.5% in December 2011, with asset managers reporting 16 new delinquent assets during the month. While Fitch's analysis already takes into account expected losses and potential future increases in delinquencies, ratings on .......

    News Round-up 17 February 2012

  • CMBS ETF launched

    Blackrock's iShares has launched an exchange-traded fund referencing the Barclays Capital US CMBS (ERISA Only) Index. Should the product grow significantly from its initial size of US$7.4m, it could prove a useful addition to the array of trading instruments available to CMBS investors.

    Blackrock says the iShares Barclays CMBS Bond Fund is the first ETF to provide exposure to investment .......

    News 17 February 2012

  • Special servicer fee warning

    Fitch has warned that the trend for some special servicers charging fees for loan modifications potentially presents risk to bondholders, borrowers and the recovering CMBS market. The agency's concern is not so much the size of any fee that a borrower pays, but the philosophy of the fee itself - it argues that special servicers have a fiduciary duty to .......

    News Round-up 17 February 2012

  • CMBS rally stalls

    The strong rally in the US CMBS market has eased off over the last two weeks. Trading is currently concentrated around AM and AJ tranches, with activity expected to pick up again in the near future.

    "The CMBS market has changed a lot over the last week or so. There have not been any large block trades and activity has .......

    Market Reports 16 February 2012

  • Euro CMBS maturity warning

    Fitch says that investment grade European CMBS ratings are becoming increasingly vulnerable to downgrades as legal final maturity (LFM) approaches. This could see Europe follow the Japanese CMBS experience, where most loan maturities have now passed and the majority of loans defaulted. There have been multiple downgrades of Japanese CMBS as the remaining time in tail periods diminishes and servicers .......

    News Round-up 15 February 2012

  • SF vet joins Analysis

    John Richard has joined Analysis Group as an affiliate. Richard's investment expertise spans unsecured corporate credit and securitisations. He was a founder of the distressed CMBS Taurus Horizon Fund and previously served at State Street Global Advisors as a senior fixed income portfolio manager.

    .......

    Job Swaps 15 February 2012

  • Law firm boosts real estate practice

    William O'Connor has joined Thompson & Knight as a partner in the firm's New York office. He recently served as chairman of the financial services practice at Crowell & Moring.

    O'Connor's practice focuses on the special servicing of CMBS and related aspects of loan workouts. He is a founding member and chairman of the high yield debt and investment forum .......

    Job Swaps 14 February 2012

  • OPERA UNI default anticipated

    Opera Finance (Uni-Invest) will become the first European CMBS to fail to repay by its legal final, if it defaults - as is expected - tomorrow. A senior noteholder steering committee has been involved in discussions about resolution options, but an announcement on the strategy is unlikely before Friday, according to structured finance strategists at Chalkhill Partners.

    They expect that .......

    News Round-up 14 February 2012

  • First Freddie transfer

    The Retreat at Stonebridge Ranch loan securitised in the Freddie Mac SPC Series K-704 CMBS was transferred to special servicing yesterday. It is believed to be the first time this has happened to a large loan securitised in the Freddie Mac K series.

    According to an update from Fitch, the US$29.41m multifamily loan transferred to the special servicer following the .......

    News 14 February 2012

  • Japanese recoveries reviewed

    S&P has released a report detailing the results of a survey that it conducted on the recovery of defaulted loans backing rated CMBS transactions in Japan, as of the end of December 2011.

    From the second quarter of 2008 - when the first underlying loan of a Japanese CMBS transaction defaulted - to the end of December 2011, 129 loans .......

    News Round-up 14 February 2012

  • DECO structural strengths highlighted

    Deutsche Bank has priced its new CMBS, the £210m DECO 2012 MHILL (SCI 6 February). Rated by DBRS and S&P, the £145m AAA/AAA class A notes printed at 300bp over Libor, the £30m AA high/AA class Bs at 450bp over and the £35m A high/A class Cs at 550bp. The single-loan deal has a 4.45-year WAL and a legal final .......

    News Round-up 13 February 2012

  • Maturity defaults drive deterioration in Euro CMBS

    Fitch says in a new report that maturity defaults continue to drive deterioration in its European CMBS portfolio. In 4Q11, 22.8% of all loans were in maturity default, a steep increase from 17.5% in 3Q11, it notes.

    Due to a combination of standstill agreements, restructurings and loan extensions, the proportion of loans that has been declared in default is slightly .......

    News Round-up 13 February 2012

  • Office, retail delinquencies hit new highs

    Delinquencies for office and retail loans have hit their highest-ever levels while overall US CMBS delinquencies fell for the sixth straight month, according to Fitch's latest US CMBS Loan Delinquency Index.

    CMBS late-pays declined by 5bp in January to 8.32% from 8.37% a month earlier. The improvement was driven by multifamily loans, which saw a 165bp plunge in its rate .......

    News Round-up 10 February 2012

  • CRE auction activity continues

    Large 'geo-series' CRE sales posted on auction.com helped drive US CMBS conduit liquidation volumes in 2011. The signs are that in the first part of this year at least they will continue to have a major impact on the sector.

    Auction.com has already listed property-level details for three large note/REO auctions for 1Q12. Scheduled for February and March, they account .......

    News 10 February 2012

  • Euro CMBS scenario assumptions deteriorate

    Based on updated central scenario assumptions, loans backing CMBS in Europe will continue to perform poorly in 2012, according to Moody's.

    Compared to the agency's previous assumption of an improved lending market in 2013, it now expects the recovery to take longer and only start in 2014 due to the prolonged financial stress in Europe and continuing eurozone crisis making .......

    News Round-up 9 February 2012

  • REC 5 upgraded

    In a rare positive turn for the CMBS, Fitch has upgraded REC Plantation Place's class B to E notes. The agency attributes the move to the asset's improving market value since March 2011, which ultimately increases the refinancing prospects of the £421.83m Plantation Place loan at maturity in July 2013.

    During the past year, a number of investors attempted to .......

    News Round-up 9 February 2012

  • January pay-offs inch higher

    The percentage of CMBS loans paying off at their maturity date inched higher in January, according to the latest Trepp pay-off report.

    In January, 40.8% of loans reaching their balloon date paid off, up by about three points from December's 37.5% reading. The December reading had been the lowest in eight months. The January number of 40.8% was below the .......

    News Round-up 8 February 2012

  • Loss severities examined

    The elevated levels of liquidation volumes in the US conduit CMBS universe seen last year have continued into 2012 and, at the same time, loan loss severities have been rising steadily since the middle of last year. A new report from US CMBS research analysts at Barclays Capital examines the pattern and factors behind the increase.

    The Barcap analysts note that .......

    News 8 February 2012

  • Shift to workouts expected to continue

    Fitch expects the shift towards putting loans backing European CMBS into workout, rather than granting extensions, to continue. This is because special servicers' options will become more limited as the volume of CMBS loans - many backed by non-prime collateral - coming due increases in 2012.

    Depending on the outcome of the workout process, this could increase the risk of .......

    News Round-up 7 February 2012
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