CMBS

  • PPIP call

    CRT and non-agency MBS still in need of purchasing power

    Non-agency MBS and CRT deals in particular are still in need of government support, according to securitised product research analysts at JPMorgan. They suggest it could come in the form of a Public Private Investment Programme (PPIP) similar to that introduced in 2009 to support MBS through combining Treasury and private capital to buy legacy assets.

    “While the .......

    News 27 March 2020

  • UK WBS hit expected

    Sector developments and company hires

    APAC
    Frontier Advisors has appointed Joe Clark as senior consultant in its alternatives and derivatives research team, based in Melbourne, Australia. Clark was previously senior portfolio manager in QIC’s global multi-asset team and has also worked at Suncorp Investment Management. He has experience in ILS manager and investment research.

    North Dock debuts
    Barclays Private Bank has closed North Dock No. .......

    Market Moves 26 March 2020

  • Forced selling

    REITs struggling to meet margin calls

    US MBS rallied yesterday (25 March) in the wake of the announcement that Congress has agreed the terms of a US$2trn stimulus package. However, they remain well down on the week, say dealers.

    “The Fed announcement has firmed things up. It has stabilised the market but not taken away all the spread widening,” says one. But the market .......

    News Analysis 26 March 2020

  • Call for TALF expansion

    Sector developments and company hires

    BlackRock hired
    The New York Fed has retained BlackRock Financial Markets Advisory as a third-party vendor to operationalise its purchases of agency CMBS and transact with primary dealers on behalf of the SOMA. BlackRock was selected on a short-term basis to serve as an investment manager after considering its expertise in trading and analysing agency CMBS in the secondary market, .......

    Market Moves 25 March 2020

  • TALF response mixed

    Fed facility could be found wanting

    The US Fed’s introduction of the new iteration of the Term Asset-Backed Securities Loan Facility, or TALF 2.0 (SCI 23 March), was one of the measures that contributed to some steadying of broader markets yesterday. However, the facility could meet with a mixed response from securitisation market participants and there are already calls for it to be expanded.

    News Analysis 24 March 2020

  • SASB stress

    RWN action reflects hotel pressure

    Fitch has placed 81 classes from 15 US single-borrower hotel CMBS on negative watch, reflecting the significant economic impact to the sector from the coronavirus pandemic. The magnitude of defaults among CMBS loans secured by hotels will nonetheless depend on the length of time that travel is disrupted and social distancing measures remain in place, as well as borrower .......

    News Analysis 24 March 2020

  • Fed revives the TALF programme

    Sector developments and company hires

    Return of the TALF
    The US Fed announced a slew of new measures to support the credit markets this morning, including the revival of the Term Asset-Backed Securities Loan Facility (TALF), first seen in the wake of the global financial crisis. Under the TALF, the New York Fed will commit to lend to an SPV on a recourse basis and .......

    Market Moves 23 March 2020

  • EIB mulls SME ABS purchase plan

    Sector developments and company hires

    Dealer credit facility launched
    The US Fed has established a Primary Dealer Credit Facility (PDCF) available from 20 March, which will offer overnight and term funding with maturities up to 90 days. The facility will be in place for at least six months and may be extended as conditions warrant. Credit extended to primary dealers under the facility may be .......

    Market Moves 18 March 2020

  • Liquidity concerns

    European ABS pipeline coming to a halt

    The European ABS primary market is grinding to a halt amid coronavirus-related volatility, with many transactions postponed. Among the relief measures implemented by the Bank of England and the ECB last week, the new UK Term Funding Scheme for SMEs (TFSME) could inhibit UK RMBS volumes further.

    “Spread levels are difficult to predict in the current environment,” says .......

    News Analysis 17 March 2020

  • Greencoat liquidator appointed

    Sector developments and company hires

    EMEA
    Ocorian has appointed Abigail Holladay as director of transaction management. Based in London, Holladay will manage restructuring transactions across Europe. She has previously held senior positions at Law Debenture and Deutsche Bank. Holladay has experience covering waivers, defaults, delegate/successor trusteeships and complex debt restructurings.

    Greencoat winding up
    In connection with the BUMF 4, 5, 6 and 7 CMBS, the .......

    Market Moves 16 March 2020

  • Elevated risk

    US conduit hotel loans vulnerable

    Hotel loans securitised in US conduit CMBS are more vulnerable to coronavirus disruption than hotel loans in single-borrower CMBS, according to DBRS Morningstar. The agency estimates that the impact of the virus threatens to increase the overall CMBS delinquency rate to 1.38% from 1.13%.

    The potential for a decrease in hotel revenue means that US$2.58bn in securitised conduit .......

    News 16 March 2020

  • SCI Start the Week - 16 March

    A review of securitisation activity over the past seven days

    SCI NPL Securitisation Awards 2020
    As a result of COVID-19, the SCI NPL Securitisation seminar has unfortunately had to be postponed and along with it the inaugural SCI NPL Securitisation Awards ceremony. Nominations remain open and a revised deadline for them will be announced in due course. Further information and details of how to pitch can be found here.

    This week's stories
    AMC .......

    News 16 March 2020

  • Native blockchain securitisation debuts

    Sector developments and company hires

    Ares facility inked
    Non-Standard Finance (NSF) has entered into a new six-year securitisation facility totalling £200m, at pricing that is more favourable than its existing facility and is expected to result in a pre-tax saving of approximately £1m in the year ended 31 December 2020. On satisfaction of certain conditions, the new facility – which is provided by credit funds .......

    Market Moves 13 March 2020

  • Multi-tranching?

    Investor diversification raises triple-tranche prospects

    Seer Capital sees a future for triple tranche structures in significant risk transfer transactions. One driver is the market’s need to further diversify the investor base.

    According to Richard d’Albert, co-cio and cro at Seer Capital: “We are going to see more dual- and multi-tranche structures. It’s just a more efficient way for banks to execute thicker hedges .......

    News Analysis 13 March 2020

  • Definition debate

    Call for coalescence around ESG standards

    Impact is still being defined in the capital markets, both at a conceptual level and in terms of general product development. The terms ‘ethical’, ‘ESG’, ‘impact’ and ‘responsible’ mean different things to different participants. To avoid fragmentation and misunderstandings, the securitisation industry therefore needs to coalesce around specific ESG definitions and performance standards.

    Amitji Odedra, associate director at .......

    News Analysis 12 March 2020

  • AXA IM creates two key units

    Sector developments and company hires

    AXA IM restructuring
    AXA Investment Managers intends to create a new €137bn business unit - called AXA IM Alts - as part of a wider restructuring of the business into two key divisions, with the aim of creating a simplified and more focused organisation. The other new business unit would be known as AXA IM Core. Under the leadership of .......

    Market Moves 11 March 2020

  • Retail repositioning

    Euro CMBS sponsor strategies weighed

    The trend towards online shopping has had an impact on traditional retail outlets, such as shopping centres. Sponsors are consequently undertaking repositioning and restructuring activity, but the move could ultimately lead to a reduction in the volume of European retail CMBS coming to the market.

    Edward Twort, director, CMBS at S&P, says: “The retail market has found itself .......

    News Analysis 6 March 2020

  • IRPH index ruling 'credit negative'

    Sector developments and company hires

    CMBS property sales
    KBRA has been notified of the sale of 29 properties in the Eos (ELoC No. 35) CMBS. All of the properties are located in the Netherlands and nearly all (28) are industrial assets. As a result of the sale, an amount equal to €74.3m will be applied in mandatory prepayment of the senior loan, representing 17.9% of .......

    Market Moves 3 March 2020

  • Retail hit

    Potential impact on Italian CMBS eyed

    Retail and tourism are the sectors which have been most affected by the outbreak of COVID-19 (Coronavirus). As such, the virus is expected to have a negative impact on Italian CMBS backed by retail assets.

    Italian retail property loans that are securitised have historically not experienced a higher default probability. However, refinancing prospects at loan maturity could be .......

    News 2 March 2020

  • Diversification offered

    European ABS market update

    The European ABS pipeline is swelling in the run-up to March. Newly announced deals are providing sought-after diversification, not only in terms of assets but also jurisdictions.

    Notably, Domivest is in the market with its second Dutch buy-to-let RMBS. Dubbed Domi 2020-1, the transaction is backed by a provisional €340m pool consisting of 1,288  mainly interest-only mortgage loans .......

    Market Reports 28 February 2020

  • GM withdrawal from Aussie autos 'credit negative'

    Sector developments and company hires

    CMBS analytics platform
    Thetica Systems has launched a web platform for CMBS pricing and analytics tools, which can be used to quickly analyse bid lists, gather market colour and perform deep analysis. Clients control the requirements for access to inputs and calculations.

    EMEA
    PGGM recently promoted Youssef Sfaif to the position of director, credit and insurance linked investments. The role .......

    Market Moves 25 February 2020
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