CMBS

  • 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

  • Euro secondary stifled

    The hoped for boom in the European securitisation secondary market this week is being stifled.

    Market sentiment remains very positive bolstered by the rally in wider markets, but sellers remain thin on the ground as most investors seek to retain current positions. Consequently, flows and BWIC volumes have eased as the week has progressed, but secondary spreads are holding firm across the .......

    SCIWire 27 April 2017

  • Special servicing books creep down

    The three largest legacy special servicers - C-III Asset Management, CWCapital Asset Management and LNR Partners - accounted for 86% of US CMBS special servicing resolutions last year, according to Fitch. In a review of its rated CMBS, the agency notes that these servicers represented 82% of the active special servicing segment at year-end 2016.

    Relative to active special servicing .......

    News 26 April 2017

  • Bill to repeal Dodd-Frank scrutinised

    Hearings are scheduled for today on a draft bill published last week by House Republicans which would repeal much of the Dodd-Frank Act. The Financial CHOICE Act would repeal risk retention rules for CLOs and all other asset classes except residential mortgages and would also repeal Volcker Rule restrictions on banks owning the debt securities of CLOs that hold anything .......

    News 26 April 2017

  • Euro secondary boosted

    The European securitisation secondary market has been boosted by the first round result in the French presidential election.

    Trading activity picked up yesterday and the BWIC calendar is slowly growing albeit from very low recent levels. The elements of softness seen last week have reversed and secondary spreads across ABS/MBS and CLOs are flat to slightly tighter.

    There are currently two .......

    SCIWire 25 April 2017

  • European hot spots highlighted

    CLOs and RMBS are seen as the main growth areas in the European securitisation market at present. Drivers include a broadening of the investor base for the former and continued bank deleveraging for the latter.

    AFME data for 1Q17 shows that pan-European CLOs led placed European securitisation issuance, followed by UK RMBS and Dutch RMBS. Volumes across these sectors totalled .......

    Talking Point 24 April 2017

  • Job swaps round-up - 21 April

    North America

    Morningstar has hired Charles Citro as md for CMBS ratings and analytics, based in New York, reporting to Vickie Tillman, president of Morningstar Credit Ratings. Most recently, Citro was senior md at Cushman and Wakefield within the asset surveillance group.

    Nations Equipment Finance has hired Susan O'Donovan as cfo. She was previously at Castleton Commodities International as executive .......

    Job Swaps 21 April 2017

  • Euro ABS/MBS picks up

    Activity in the European ABS/MBS secondary market is picking up after the Easter break.

    Yesterday saw a flurry of both bilateral trading and BWICs primarily driven by rotation activity. Secondary spreads remain firm for now given the recent paucity of supply, but the possibility of some weakening in higher beta paper is emerging.

    There are currently four BWICs on the .......

    SCIWire 20 April 2017

  • Special servicing shift underway?

    A shift in the US CMBS special servicing landscape is emerging, according to Fitch's year-end review of servicing trends. While the traditional cartel of legacy CMBS special servicers - who invested in controlling bond positions - continue to represent the largest balance of active special servicing, a new set of players take the lead when measuring volume by named special .......

    News 19 April 2017

  • 'Substantial' loss forecast after methane claim

    The US$77.2m City View Center loan - securitised in MSC 2007-IQ14 - has received a US$62.5m payment, following the representation and warranty settlement between the special servicer and originator Morgan Stanley (see SCI's CMBS loan events database). The loan transferred to special servicing in late 2008 over a lawsuit, initiated when the borrower violated EPA requirements related to .......

    News 19 April 2017

  • Floating-rate ABS lacks support for growth

    Lack of demand will likely limit the growth of floating-rate ABS and CMBS in the US, despite rising interest rates. Investors may instead hedge against interest rate exposure or invest in floating-rate products with a long performance history, such as corporate CLOs.

    Fitch recently suggested that floating-rate CMBS conduits may re-emerge in the US due to rising interest rates and .......

    News Analysis 13 April 2017

  • Euro secondary ebbs and flows

    Activity in the European securitisation secondary market continues to ebb and flow.

    Trading patterns continue unchanged across ABS/MBS and CLO sectors - from time to time volumes begin to build before dissipating once again amid positive market sentiment. Last week reflected that as activity fizzled out towards the end of the week, while yesterday saw a flurry of auctions and .......

    SCIWire 11 April 2017

  • Payless closures to have limited impact

    Only six CMBS loans with exposure to Payless ShoeSource - for a combined allocated property balance of US$34.8m - will likely be hurt by the retailer's planned closure of 379 stores, according to Morningstar Credit Ratings. The agency suggests that these loans may be at an elevated risk because either Payless occupies at least 20% of the gross leasable area .......

    News 10 April 2017

  • B-piece buyer shift underway

    The US CMBS B-piece investor base is shifting towards those with longer-term capital, following the implementation of risk retention rules. Greater clarity over the structural complexity associated with the rules, together with increasing credit quality is expected to facilitate growth across the sector.

    Risk retention requirements stipulate that third-party purchasers of the eligible horizontal residual interest (EHRI) - totalling 5% .......

    News Analysis 6 April 2017

  • Euro ABS/MBS active

    The European ABS/MBS secondary market is once again active without yet fully taking off.

    "Secondary is now chugging along," says one trader. "There's enough going on to keep us occupied, but nothing major."

    The trader continues: "There are selective opportunities, but there's no real stand-out activity. One possible exception to that is some of the racier positions from the big .......

    SCIWire 6 April 2017

  • Largest STACR to date prices

    Freddie Mac has priced its largest STACR deal to date. The US$1.32bn STACR 2017-DNA2 is also Freddie Mac's second low-LTV deal of the year.

    The M1 class has priced at one-month Libor plus 120bp, while the M2s priced at plus 345bp. The B1 class priced at plus 515bp and the B2s at plus 1125bp.

    STACR 2017-DNA2 has a reference pool .......

    News 5 April 2017

  • Euro secondary restarts

    The turn of the quarter has restarted activity in the European securitisation secondary market.

    Flows and BWIC supply are picking up across the board this week. So far execution levels remain strong as long-standing pent up demand gets some release.

    As a result, secondary spreads remain firm amid positive market sentiment. However, the growing secondary and primary calendars are yet .......

    SCIWire 4 April 2017

  • Compliant wireless tower deal debuts

    SBA Communications is marketing its first risk retention-compliant securitisation. The US$760m SBA Tower Trust Series 2017-1C is backed by a pool of wireless towers located across the US and their related tenant leases.

    The deal is secured by a mortgage loan that the issuer will make to borrowers that are wholly owned by SBA Communications. Fitch and Moody's have assigned .......

    News 3 April 2017

  • Revised restructurings touted for DECO 2006-C3

    Nearly 72% of DECO 11 - UK Conduit 3 noteholders have instructed the special servicer to explore options that may facilitate a faster resolution of the £216.4m Mapeley Gamma and £37.1m Wildmoor Northpoint loans. The move follows the restructuring of the two loans and the subsequent Fitch downgrade of the CMBS' class A1A and A1B notes.

    Accordingly, the special servicer .......

    News 28 March 2017

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by wider market volatility.

    The see-saw in equities and broader credit over the past two sessions has not been reflected in secondary spreads, which continue to hold firm. Indeed, sentiment remains positive and demand continues to outstrip supply.

    Nevertheless, activity overall remains light with only some rotation activity and patchy flows in key .......

    SCIWire 28 March 2017

  • Beacon Seattle loan closed out

    The final three properties securing the Beacon Seattle & DC Portfolio loan - securitised in six conduit CMBS - have been disposed of, resulting in approximately US$55.7m in additional realised losses on top of US$45.2m in losses previously incurred throughout the loan's term (see SCI's CMBS loan events database). At securitisation, the US$2.7bn loan - one of the .......

    News 27 March 2017
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