CMBS

  • Treasury reports on regulatory impact

    The US Treasury has issued a first report in a series regarding regulation of the financial system in a manner consistent with an executive order issued by President Trump back in February. The report addresses the regulation of the depositary system and makes several findings and recommendations which could impact the future regulation of securitisations.

    The report criticises certain regulatory .......

    News 15 June 2017

  • Euro ABS/MBS unchanged

    Trading patterns in the European ABS/MBS secondary market remain unchanged.

    The lack of primary supply across all sectors continues to stifle flows and discourage BWIC activity. Nevertheless, tone remains positive and demand strong, consequently secondary spreads are flat to slightly tighter on the week.

    There is currently one BWIC on the European ABS/MBS schedule for today. It is a five line .......

    SCIWire 15 June 2017

  • Prosecutors probe valuations process

    US prosecutors, after years spent studying the sell-side, appear to be turning their attentions to the buy-side, as investigations have begun into whether structured credit hedge funds inflated the value of debt securities for their portfolios. The probe is particularly concerned with whether brokers were encouraged to give dishonest valuations for month-end marks.

    The reasons for a fund to seek .......

    News Analysis 14 June 2017

  • Euro secondary flickers

    The European securitisation secondary market is slowly flickering back to life.

    Overall, all ABS/MBS and CLO sectors remain insulated from broader market moves with tone and secondary spreads still solid. Nevertheless, flows have been thin over the past two sessions as the market slowly finds its feet post the Barcelona conference and UK election.

    There has, however, been a flurry .......

    SCIWire 13 June 2017

  • CHOICE Act passes in House

    The US House of Representatives has passed the Financial CHOICE Act. The legislation aims to replace much of the Dodd-Frank Act, specifically criticising Dodd-Frank's "one size fits all" approach to securitisation and doing away with risk retention requirements for all asset classes except RMBS.

    The Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act (SCI passim) intends to provide .......

    News 9 June 2017

  • European market growth predicted

    European securitisation market participants expect the number of investors to grow and participation by investors to increase. Increased investor support is identified in a recent DBRS survey as one of the most important changes required in order to grow the securitisation market, while regulatory concerns once again dominate.

    The DBRS survey was conducted before the European regulatory changes were announced last week .......

    News 6 June 2017

  • Bio-science CMBS prepped

    Blackstone is in the market with a US$330m CMBS backed by a two-year floating rate commercial mortgage. Dubbed CGDB 2017-BIO, the transaction is backed by a first lien on the borrower's fee and leasehold interests in a portfolio of 18 life science, office, laboratory and medical properties.

    The transaction is sponsored by Blackstone's real estate fund Blackstone Real Estate Partners .......

    News 1 June 2017

  • Euro secondary sporadic

    The European securitisation secondary market continues to exhibit the pattern of recent weeks with sporadic bursts of activity in specific areas.

    The stop-start nature of all asset classes has been further exacerbated by recent public holidays, month-end and the run-up to Global ABS. With wholesale absences at the conference next week little is likely to change in the near future.

    SCIWire 1 June 2017

  • More store closures add to retail woes

    Retail woes continue to trouble the CMBS sector, with Rue21 filing for bankruptcy last week and announcing it will close approximately 400 stores. Fitch figures show more than ten retailers have now filed for bankruptcy in 2017, including General Wireless Operations (RadioShack) shutting 552 stores, and around 40 retailers have announced store closures.

    Clothing retailer Rue21 takes up a large .......

    News 25 May 2017

  • Investors overweight RMBS

    Investors are moving out of consumer ABS and into US non-agency RMBS, agency RMBS and cash, according to a Morgan Stanley survey. 89% of survey respondents expect to stay in line or add to their current allocation to securitised products.

    The 2Q17 global investor survey polled 30 hedge funds, 67 asset managers, 23 insurance companies, 27 banks, two pension funds .......

    News 23 May 2017

  • Urgent-care centres could help fill retail vacancies

    Non-traditional tenants such as medical and urgent-care centres could help fill vacancies in large retail properties, according to Morningstar Credit Ratings. There is currently US$739.8m in CMBS with exposure to urgent-care centres where they are one of the five largest tenants and Morningstar suggests the growth of these centres may help combat the growing number of retail tenants filing for .......

    News 23 May 2017

  • Global interest in Euro SF surges

    The number of investors in European securitisations is ramping up and transactions are increasingly oversubscribed. Issuance volumes still lag behind 2016, but structured finance analysts at Bank of America Merrill Lynch are optimistic that 2017 can gain momentum thanks to increased global investor demand.

    There has been renewed investor interest in European structured products, which the analysts believe will push .......

    News 22 May 2017

  • Job swaps round-up - 19 May

    CDO manager transfers

    Dock Street Capital Management has replaced Vertical Capital as portfolio advisor to Summer Street 2005-HG1 and Vertical CDO 2003-1. Moody's confirms that the move will not impact the ratings on the ABS CDOs.

    EMEA

    BlueMountain Capital Management has named Louisa Church ceo for Europe. She will also continue in her role as head of client advisory - .......

    Job Swaps 19 May 2017

  • Regulatory proposal for SPVs 'credit negative'

    Proposed European regulatory changes to classify SPVs as financial counterparties have created significant uncertainty and are credit negative, rating agencies warn. Should the European Commission's (EC) intended amendments to EMIR be carried out, transactions would be required to post two-way variation margin and clear derivatives centrally.

    The EC's proposals remain subject to approval from the European Parliament and Council. Fitch .......

    News 19 May 2017

  • Job swaps round-up - 12 May

    Amicus briefs

    The LSTA has joined The Clearing House and the American Bankers Association to file amicus briefs in cases initiated by the State of Colorado against Avant and Marlette, both of which have bank partners (WebBank and Cross River Bank respectively). In January, Colorado regulators sued the two marketplace platforms, claiming that their loans are subject to Colorado interest .......

    Job Swaps 12 May 2017

  • Pari passu exposure highlighted

    DBRS has updated its Pari Passu Index for loans in US CMBS transactions issued after 2010. The results show that an unusually large volume of pari passu notes were included in CMBS deals last year, accounting for US$23bn of loans and 489 pieces.

    The pari passu loan structure allows originators to make large commercial real estate loans and CMBS issuers .......

    News 9 May 2017

  • Euro ABS/MBS quiet

    Despite the resolution of the French presidential election the European ABS/MBS secondary market remains quiet.

    "Overall, it's still very quiet," says one trader. "We had a new Bavarian SKY issue announced yesterday, but that's the first primary deal in a few weeks."

    The trader continues: "In secondary not much happened between the two rounds of the French presidential election. We're .......

    SCIWire 9 May 2017

  • Lipstick Building lease CMBS prepped

    Credit Suisse is in the market with a single-asset/single-borrower CMBS secured by two of three land parcels beneath 885 Third Avenue in New York, known as the 'Lipstick Building'. Dubbed CSMC Trust 2017-LSTK, the US$272m transaction is sponsored by a joint venture between BVS Acquisition Co and Shanghai Municipal Investment (Group) USA.

    The collateral comprises the fee simple interest in .......

    News 5 May 2017

  • GSE CRT value explored

    High-LTV GSE credit risk transfer (CRT) deals differ from low-LTV ones in more ways than just LTV ratio. While controlling for these differences shows worse delinquencies for high-LTV deals, loss severities are actually better, and therefore high-LTV CRTs could provide compelling opportunities for spread pickup.

    When Fannie Mae and Freddie Mac launched their CRT programmes in 2013, reference pools consisted .......

    News 28 April 2017

  • SFR composition trends analysed

    Fewer distressed buying opportunities for institutional investors in single-family rental houses has led to a shift of securitised properties from the southwest US to the southeast. A new Morningstar Credit Ratings analysis highlights that the composition of future issuance in the sector will depend on market-driven property acquisition and disposition strategies.

    After peaking in 2014, fewer single-borrower SFR properties are .......

    News 28 April 2017

  • Mall refi prospects mixed

    While many CMBS loans on regional malls are expected to struggle to refinance at maturity, Morningstar Credit Ratings has identified three such loans maturing this year which should be able to refinance successfully. These are the West Town Mall, Westfield Southlake and North Hills Mall loans securitised in MSC 2007-IQ16, LBUBS 2008-C1 and JPMCC 2007-CB20 respectively.

    Loans which amortise over .......

    News 27 April 2017
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