CMBS

  • 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

  • Kamakura moves into CRE risk

    Kamakura Corporation is set to launch a suite of commercial real estate default probability models based in part on data furnished by Trepp's Data Feed. In addition to the Kamakura CRE Default Models, Kamakura Risk Manager Version 8.0 - to be released later this month - will have full automated access to the Trepp CMBS Engine.

    The Kamakura CRE default .......

    News Round-up 7 February 2012

  • DB UK CMBS announced

    Deutsche Bank's latest UK CMBS - the £210m DECO 2012-MHILL - has hit the market. The transaction securitises a single commercial real estate loan, which the bank made to refinance entities managed by Queensland Investment Corporation's (QIC) 50% ownership in the Merry Hill shopping centre and adjacent retail and office parks. Westfield Group entities hold the remaining 50% ownership.

    Merry .......

    News Round-up 6 February 2012

  • More large liquidations predicted

    An increase in dispositions of larger CMBS loans in the coming months would not be a surprise, according to Citi securitised products analysts. They argue that there are three drivers behind such an expectation.

    First, while special servicers may continue to aggressively liquidate the small loans in their pipeline, they may also now turn their attention to potentially liquidate larger .......

    News 6 February 2012

  • Multifamily rebounding

    Fitch reports that multifamily, along with hotels, has shown the best performance rebound in the US over the past 24 months of all commercial real estate property types. As the economy has stabilised, the two sectors have been able to mark-to-market more quickly due to shorter term rentals than other property types that have stickier rental streams as a result .......

    News Round-up 3 February 2012

  • Eddystone non-call waterfall questioned

    Sainsbury's has disclosed that it may not redeem the Eddystone Finance CMBS on its April 2013 step-up date. How principal will be allocated to the notes post non-call remains unclear, however.

    European CMBS strategists at Barclays Capital believe that while the intended cashflow allocation rules for the deal are clear, the offering circular (OC) is ambiguous. "To make a final .......

    News 3 February 2012

  • Delinquency rate stays rangebound

    Last month the Trepp delinquency rate for US CRE loans in CMBS continued to hover within a narrow band. Overall, the rate in January fell by 6bp points to 9.52%.

    For the last three months the delinquency rate has oscillated only slightly higher and lower and in the process the rate hasn't gone above 9.6% or below 9.5%, Trepp says. .......

    News Round-up 2 February 2012

  • CMBS loan liquidations spike again

    The volume of CMBS conduit loans liquidated in January spiked sharply, jumping 51% from December's reading, according to Trepp. In fact, the January reading was the third highest total since the firm began tracking this number in January 2010.

    At US$1.58bn, liquidations were about 21% above the 12 month moving average of US$1.3bn per month. Since the beginning of 2010, .......

    News Round-up 1 February 2012

  • Real estate vet joins advisory

    Robin Priest has joined Alvarez & Marsal Real Estate Advisory Services in London as a senior adviser. He brings more than 30 years of experience in real estate and structured finance to the firm. His primary focus will be working with European real estate clients in connection with challenging and complex assets, portfolios or businesses.

    Prior to joining A&M, Priest .......

    Job Swaps 1 February 2012

  • Alliance SAFD-PJ plan surprises to the upside

    The latest documents released as part of PJ Alliance's bankruptcy filing reveal a new reorganisation plan, which is expected to be reflected in a modification of the US$475m Alliance SAFD-PJ portfolio loan securitised in CSMC 2007-C2. Although concessions to the sponsors under the proposal appear high, if the hypothetical liquidation analysis truly reflects market conditions, the modification should result in .......

    News 1 February 2012

  • CMBS workouts driving maturity outcomes

    Fitch reports that European CMBS loan workouts have become more prevalent as the majority of loans that were due to mature in January 2012 remain outstanding. The total number of loans being worked out due to maturity default increased threefold during the past month, to 55 loans from 40 loans, the agency notes.

    Only three loans that were originally scheduled .......

    News Round-up 1 February 2012

  • Counterparty review hits Euro CMBS

    S&P has placed on credit watch negative its ratings on 122 tranches in 65 European CMBS transactions. The move follows the rating actions the agency took on banks on 29 November 2011, following the application of its revised bank criteria. Many of the CMBS that S&P rates have exposure to one or more of the banks affected by these rating .......

    News Round-up 1 February 2012

  • Windermere XII warning

    Fitch says that the recent decision by the Versailles court of appeal to uphold the initial 'sauvegarde' protection granted to the borrower - a non-FCT SPV - and its parent behind the loan backing the Windermere XII CMBS is currently reflected in the transaction's ratings.

    The latest ruling is the most recent in a series of court rulings that began .......

    News Round-up 31 January 2012

  • Legal team poached

    A group of five attorneys has left Burns White to join Dinsmore in a newly-opened Pennsylvania office. All five attorneys are experienced in CRE and CMBS.

    Rich O'Halloran was previously chair of Burns White's business practices group and will serve as the office managing partner at Dinsmore. He is joined by Lindsey Hoelzle, Eric Levine, Alyson Ricker and Marshall Schreibstein.

    Job Swaps 31 January 2012

  • US CMBS continues to impress

    January has proved to be a productive month for US CMBS and last week was no exception to that trend. New issuance has been well received and spreads in both the primary and secondary market are tightening.

    "The huge change in sentiment lately has been due to everybody switching to 'risk-on' mode. The way that has shown up in CMBS .......

    Market Reports 30 January 2012

  • Japanese CMBS see Q4 losses

    Losses were incurred on seven of the ten Japanese CMBS loans for which collections were completed in 4Q11, according to S&P. Further, of the nine underlying loans of Japanese CMBS transactions rated by the agency that matured in the fourth quarter, three defaulted due to non-repayment in the same quarter and six were repaid.

    Meanwhile, collections for 10 other loans .......

    News Round-up 30 January 2012

  • Specially serviced US CMBS on the rise

    Specially serviced US CMBS loans have been on the rise since last quarter and are likely to continue increasing, according to Fitch.

    Loans over US$20m moving to special servicing total 15 so far in 2012. A total of 210 loans over US$20m transferred to the special servicer in 2011, down from 312 in 2010, Fitch adds. The number of loans .......

    News Round-up 27 January 2012

  • Euro CMBS NPL warning

    Tiering within European CMBS is gradually forcing the best and the worst loans to leave the universe. Absent new primary issuance, this trend could result in European CMBS morphing into a non-performing loan asset class in which the securitised collateral is either in default or 'passed initial maturity' status.

    European CRE investment and lending markets are characterised by significant tiering, .......

    News 27 January 2012

  • Japanese CMBS loan defaults rising

    The balance of defaulted underlying loans backing Fitch-rated Japanese CMBS was ¥266.2bn at end-December 2011, accounting for more than half of the total underlying loan balance at that time. Although the defaulted loan balance decreased compared to end-3Q11, the default rates have continued to increase as total Japanese CMBS underlying loans have decreased even further.

    "By end-1Q12, the defaulted loan .......

    News Round-up 27 January 2012

  • Tesco CMBS prints amid ratings review

    Tesco's latest sale-and-leaseback transaction - the £450m Tesco Property Finance 5 - has priced at 275bp over gilts via Goldman Sachs, HSBC, Lloyds and RBS. The previous four Tesco CMBS widened on the back of the news by approximately 20bp - from 240bp to 260bp.

    The latest transaction represents a true-sale credit-tenant-linked securitisation of one commercial mortgage loan, secured by .......

    News Round-up 26 January 2012

  • EMEA special servicing activity reviewed

    Moody's has released its latest monthly update on specially serviced EMEA CMBS loans. As of year end, 114 loans were in special servicing across the large multi-borrower and single borrower transactions the agency monitors.

    The Princes loan, securitised in Titan Europe 2007-3, was newly transferred to special servicing during December. The £9.3m loan (accounting for 1% of the pool) .......

    News Round-up 25 January 2012
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