CMBS

  • Rise reported in US CMBS delinquency rates

    The delinquency rate on loans included in US CMBS increased by 15bp in October to 8.39%, according to Moody's Delinquency Tracker (DQT). The increase was almost the same as the 14bp increase in September and the fifth consecutive month of modest growth in the rate.

    In October, 282 loans totalling US$3.45bn became newly delinquent, while 211 previously delinquent loans totalling .......

    News Round-up 11 November 2010

  • New NAIC CMBS model 'less punitive'

    The National Association of Insurance Commissioners (NAIC) has released guidelines detailing its new method for determining capital requirements for CMBS. The new capital requirements are expected to be less punitive than under the existing model, leading to little or no forced selling from insurers.

    Initial results from the Blackrock model indicate that it is more optimistic than most Street projections, .......

    News Round-up 10 November 2010

  • Careful implementation urged on Volcker Rule

    The CRE Finance Council has submitted a comment letter to US Secretary Timothy Geithner, chair of the Financial Stability Oversight Council (FSOC), in response to an FSOC study on rulemaking to prohibit proprietary trading by certain financial institutions, known as the 'Volcker Rule'. The letter emphasises that regulators should strictly adhere to the Dodd-Frank Act, which directs that the Volcker .......

    News Round-up 9 November 2010

  • CRE firm on hiring spree

    The Situs Companies has opened a new office in Atlanta, Georgia, headed by Tammy Ellerbe. As part of the firm's integrated platform, the new office offers due diligence, loan underwriting, primary and special servicing, and asset management.

    Ellerbe will initially recruit 25 professionals with experience in CRE loan underwriting, collateral valuation, asset management, workouts and strategic disposition and REO advisory .......

    Job Swaps 8 November 2010

  • Japanese CMBS loan behaviour analysed

    Moody's reports that a large proportion of Japanese CMBS loans maturing this month and next are originated in 2007, backed by retail properties or amount to more than Y20bn each.

    16 loans totalling Y270.9bn will mature in November and December - the equivalent of 24% of the CMBS loan amounts maturing in 2010, the agency says. 40% of the loans .......

    News Round-up 8 November 2010

  • Milestone drop for CMBS delinquencies

    Fitch reports that US CMBS loan delinquencies have declined for the first time in 33 months, according to its latest loan delinquency index results, with a large assist from the hotel sector.

    CMBS delinquencies dropped by 88bp to 7.78% due largely, the agency says, to the resolution of seven loans greater than US$100m - including the US$4.1bn Extended Stay America .......

    News Round-up 5 November 2010

  • Boutique strengthens real estate team

    Future Capital Partners (FCP) has appointed Elodie George, Tim Mycock and Aysha Banks to its real estate team. The team, led by Peter Young, is responsible for managing the investment partnerships for the firm's £150m luxury real estate development in Budva, Montenegro, as well as a number of landmark UK real estate developments.

    As real estate manager, George is responsible .......

    Job Swaps 5 November 2010

  • Mortgage finance partner recruited

    Berwin Leighton Paisner has appointed structured finance lawyer, Lucy Oddy, as partner in its banking and capital markets team in London. Joining the firm from Clifford Chance, she has experience in working on UK and pan-European SF transactions, with a focus on residential and commercial mortgage financing portfolio disposals.

    .......

    Job Swaps 4 November 2010

  • Extended Stay resolution dampens delinquencies

    Trepp has issued its October 2010 Delinquency Report, which indicates that the US CMBS delinquency rate fell in October, marking the first month-to-month drop in over a year. The percentage of loans 30 or more days delinquent, in foreclosure or REO fell by 47bp during the month to 8.58%, putting the value of delinquent loans at US$58.3bn. This compares to .......

    News Round-up 3 November 2010

  • Debut Euro CMBS resecuritisation rated

    S&P has rated what are believed to be the first public resecuritisations of a European CMBS bond. The Asset Repackaging Vehicle series 2010-4 and 2010-5 transactions are backed by portions of GEMINI (ECLIPSE 2006-3)'s double-B plus rated class A notes, sold by Lazuli Ltd (in the case of the series 2010-4 resecuritisation) and HSBC Bank (2010-5).

    The £69.41m series 2010-4 .......

    News Round-up 2 November 2010

  • First losses seen on Euro CMBS matured loans

    Fitch says in its latest bulletin that European CMBS loan repayments fell in October, with two loans reporting their first losses.

    Fitch's Maturity Repayment Indices reduced from 38.5% to 36.6% during the month, as less than 4% of maturing loan balance was successfully repaid. Overall, the outstanding matured loan balance has increased by 9% to €4.84bn. Of the 96 loans .......

    News Round-up 1 November 2010

  • CMBS borrowers taking 'opportunistic measures'

    While most US CMBS loans transferring to special servicing are driven by borrowers looking to prevent future defaults, select recent transfers are showing different results entirely, according to Fitch.

    Most CMBS loans now in special servicing are there due to an 'imminent default'. This is an opaque, catch-all classification that provides little colour on what circumstances precipitated the transfer, the agency .......

    News Round-up 29 October 2010

  • CMBS vet launches advisory

    Dan Smith has formed Four Point Alliance, partnering with Hart Advisors Group. The CRE advisory firm will specialise in expert witness testimony in CMBS lawsuits, loan servicing and asset management.

    Smith previously originated transactions for RBC Capital Markets, including sourcing, underwriting and closing commercial and multifamily loans for inclusion in CMBS pools. He says: "Volume in the CMBS industry has .......

    Job Swaps 28 October 2010

  • US CMBS loss severities climbing

    S&P recently undertook a study of defaults and losses for North American CMBS that suggests defaults this year could eclipse the record 2,138 defaults experienced in 2009, if the current pace continues. During the first half of 2010, 1,200 loans defaulted, according to the rating agency.

    More than half (3,338) of the defaults over the course of the study period - .......

    News Round-up 25 October 2010

  • Liquidation line

    Public sales proving positive for US CMBS market

    US CMBS liquidation volumes via public sales average almost US$200m a month and are expected to remain elevated as unprecedented amounts of distressed assets are worked through. All of the major special servicers are selling into these auctions, with prices having increased significantly since the beginning of the year due to better financing opportunities.

    "It is compelling from an NPV .......

    News Analysis 25 October 2010

  • US CMBS loans defaulting at 'record pace'

    Fitch reports that cumulative defaults for fixed rate US CMBS jumped by 112bp this quarter to 10.6%, through to the end of 3Q10.

    "Loans continue to default at a record pace, with large loans driving the trend," says Fitch md Mary MacNeill. "Hotel and office properties were the largest contributors to defaults this past quarter."

    Loan defaults for this year .......

    News Round-up 25 October 2010

  • Euro CMBS payment defaults rising

    S&P reports that European CMBS maturity payment defaults are continuing to increase this year and have, for the first time, outstripped term payment defaults.

    Of the 34 payment defaults in 2009, only eight defaulted for the first time at maturity - with 26 defaulting during the loan term. By contrast, of the 33 payment defaults between January and September 2010, 18 .......

    News Round-up 21 October 2010

  • Real estate vets join advisory firm

    Chatham Financial has appointed Mike Havala and John Avioli as senior executives in its capital advisory group, Chatham Capital Advisors. The pair will launch its Chicago office.

    Havala and Avioli were the co-founders of Blue Spire Capital, a Chicago-based consulting group. Previously, Havala spent 15 years as the cfo of First Industrial, while Avioli spent 12 years as the director .......

    Job Swaps 20 October 2010

  • FLTST 1 senior noteholders fire warning shot

    M&G is to convene an informal meeting of the class A noteholders in Fleet Street Finance One to discuss the pending maturity of the outstanding loan, which is scheduled for February 2011. European asset-backed analysts at RBS suggest that the action is a direct response to Cairn's appointment as financial advisor to the Queens Moat House borrower, which may be .......

    News Round-up 19 October 2010

  • Majority of Extended Stay CMBS pays down

    Extended Stay Inc last week emerged from Chapter 11 bankruptcy protection. The company was bought by a group of private equity investors for a total of US$3.925bn in July.

    Most of the hotels the company owns had debt securitised in the WBCMT 2007-ESH CMBS. The October remittance report for the transaction indicates that classes A through to J were paid .......

    News Round-up 19 October 2010

  • Japanese CMBS loan defaults reaching peak

    Fitch says that the number and balance of defaulted loans underlying Japanese CMBS has declined as of end-September. Despite its expectations that the previous upward trend in defaulted loans is reaching a peak, there is a possibility, the agency says, that the total defaulted loan balance may increase again in Q410.

    "This is the first time that both the number .......

    News Round-up 19 October 2010
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