CMBS

  • Euro ABS/MBS edges in

    European ABS/MBS secondary spreads continue to edge in.

    "The market remains strong and well-supported," says one trader. "At the same time, we're not seeing any real rotation activity from clients - even though there's action in primary, they appear content to hang on to their secondary positions as well."

    As a result, the trader adds: "Secondary spreads continue to creep .......

    SCIWire 23 February 2017

  • MC Sports filing threatens CMBS

    Of the 15 US CMBS loans exposed to MC Sports, there are six which stand to be particularly affected by the company's bankruptcy filing last week, says Morningstar Credit Ratings. The largest loan of concern is the US$17.2m Wilsontown Shopping Center loan securitised in JPMBB 2013-C17.

    MC Sports is set to begin liquidation sales immediately at its 68 stores in .......

    News 22 February 2017

  • Deploying capital

    Chris Redmond, global head of credit at Willis Towers Watson, answers SCI's questions

    Q: How and when did Willis Towers Watson become involved in the securitisation market?
    A:     Willis Towers Watson has an international team conducting research of all credit managers and products, including securitised credit. While we had exposure to securitised credit via broad, generalist mandates beforehand, it was in the aftermath of the financial crisis when we started making dedicated, specialist allocations .......

    The Structured Credit Interview 20 February 2017

  • Student accommodation CMBS prepped

    Brookfield Asset Management affiliate GL Europe RE Holdings is prepping a £215m single-tranche UK CMBS. Dubbed Student Finance, the transaction is backed by a single loan secured by 13 student accommodation buildings located in England and Wales.

    The portfolio comprises 5,684 bed spaces across properties in Leicester, Newcastle, Nottingham, Sheffield and Wrexham, with the largest property accounting for only 21% .......

    News 20 February 2017

  • Shifting dynamics spur CMBS prepays

    The €1bn Woba loan was successfully prepaid in full this week, confirming growing speculation that the Taurus 2013-GMF1 CMBS' days were numbered. Far from being an isolated incident, the move illustrates how broken the relationship between CMBS and other debt capital markets has become.

    The Woba loan formed the collateral of the TAURS 2013-GMF1 German multifamily CMBS transaction. Bank of .......

    News Analysis 17 February 2017

  • Debut green agency CMBS priced

    Fannie Mae has priced its first green REMIC tranches as part of a multifamily DUS transaction. The US$1bn FNA 2017-M2 is the GSE's second multifamily DUS REMIC in 2017 under its GeMS programme, but the deal is unique in that two tranches are backed by 30 loans originated under the Fannie Mae green financing business and securitised as green DUS .......

    News 16 February 2017

  • Rollover risk highlighted

    A Paramount Group Operating Partnership and Blackstone Property Partners JV is the sponsor of the latest US single-borrower CMBS to hit the market. The US$975m OMPT 2017-1MKT is secured by the One Market Plaza building, a Class-A office complex located in San Francisco's South Financial District.

    The complex comprises a 27-story office tower (Stuart Tower), a 42-story office tower (Spear .......

    News 14 February 2017

  • Risk retention trends emerging

    Different retention strategies have emerged for US CLOs and CMBS leading up to and since the implementation of risk retention rules on 24 December 2016, with varying benefits also arising, such as a perception of increased quality in such deals. For the broader ABS market, however, approaches are still taking shape.

    There are five main strategies for risk retention: a .......

    News Analysis 9 February 2017

  • CMBS loans exposed to EO bankruptcy

    Eastern Outfitters' chapter 11 bankruptcy filing could affect eight CMBS loans with a combined balance of US$134.1m. The largest exposure is the US$25.2m Blackstone Retail Loan securitised in WFCG 2015-BXRP, although strong occupancy for all affected properties is expected to mitigate the risk of default.

    Morningstar Credit Ratings believes Eastern Outfitters may be counting on a buyer to take over .......

    News 9 February 2017

  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy.

    Friday saw a relatively quiet session after a pick-up over the previous two days, but yesterday saw a flurry of activity and a couple of BWICs that traded strongly. Focus in ABS/MBS continues to surround peripheral paper, while CLOs remain most interested in lower mezz. Overall, sentiment is still .......

    SCIWire 7 February 2017

  • Multifamily risk-sharing debuts

    Freddie Mac has priced its first offering of multifamily aggregation risk transfer certificates. The US$1bn FMPRE 2017-KT01 is backed by multifamily mortgage loans that are awaiting sale into K-Series securitisations.

    KT certificates are designed to transfer to certain investors a portion of the credit risk associated with eligible multifamily mortgage loans prior to sale into K-Series CMBS. On the settlement .......

    News Round-up 3 February 2017

  • Origination platform acquired

    Walker & Dunlop has acquired Deerwood Real Estate Capital's loan origination platform, which specialises in sourcing debt and equity for all commercial real estate asset classes. Sixteen of the firm's commercial loan originators are expected to join Walker & Dunlop's capital markets group, including Deerwood co-founders David Rosenberg and Abe Katz.

    "Deerwood marks another fantastic acquisition of talented loan originators .......

    Job Swaps 2 February 2017

  • CMBS liquidation volume rockets

    US CMBS liquidation volume jumped in January to US$1.4bn, according to Trepp, crossing the US$1bn mark for the first time in 12 months. January's figure is more than double the US$595.3m total from December.

    January saw 99 loans averaging US$14.6m disposed. Loss severity also climbed over 14 percentage points to 57.83%, driven by heavy losses on several large retail and .......

    News Round-up 2 February 2017

  • SFR operators change tack

    Single-family rental (SFR) transactions are benefitting from an improvement in sponsors' business models and strategies, says Moody's. Sponsors have moved away from the bulk purchases in depressed markets that started their businesses to strategies which improve the quality of the properties backing their transactions.

    "With the US housing market recovering from the financial crisis and the inventory of distressed homes .......

    News Round-up 2 February 2017

  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global securitised products investor survey, accounting for 28% of the responses. Nevertheless, half of those polled expect their allocation to securitised products to stay in line with their current allocation, while 36% expect to increase their allocation, compared with 37% in 3Q16.

    The Morgan Stanley survey .......

    News 2 February 2017

  • CRE market to 'remain favourable'

    CRE Finance Council's latest annual member survey suggests that the US commercial real estate market should remain favourable in 2017, with the pace of economic growth rising, interest rates incrementally higher, new construction relatively low, and ample availability of capital and credit. However, CMBS spreads are expected to remain volatile, due mainly to external factors such as contagion from other .......

    News Round-up 2 February 2017

  • Land Securities tender completed

    Land Securities has confirmed it will accept for purchase an aggregate principal amount of CMBS notes across three series equal to £634.68m at a cash cost of £759.1m as part of its tender offer. At the same time, the firm will issue a £400m seven-year bond (paying a coupon of 1.974%) and a £300m 12-year bond (2.399%) under its Land .......

    News Round-up 2 February 2017

  • Surprise delinquency dip

    The Trepp US CMBS delinquency rate fell modestly in January to 5.18%, a drop of 5bp from December. The rate is now 86bp higher than the year-ago level.

    Trepp notes that last month's dip comes as a bit of a surprise, given the volume of loans from the 2007 vintage coming due this year. "We will now watch to see .......

    News Round-up 1 February 2017

  • FNMA loan to pay down SFR deals

    Invitation Homes last week filed a preliminary prospectus with the US SEC in which it notes that it has secured a US$1bn 10-year loan commitment from Fannie Mae and Wells Fargo and that it will use these proceeds to pay down all or a portion of the loans backing a pair of single-family rental securitisations. Moody's says this loan commitment .......

    News Round-up 31 January 2017

  • Global MBS fund launches

    PIMCO has launched a global MBS fund. GIS Mortgage Opportunities Fund is an absolute-return oriented, securitised asset-focused fund designed to capitalise on dislocations across agency RMBS, non-agency RMBS and CMBS markets.

    PIMCO says the fund has the ability to allocate across all subsectors of the global securitised market and seeks to efficiently manage interest rate and credit risk across different .......

    Job Swaps 31 January 2017

  • Academy adds structured products pair

    Academy Securities has made two additions to its structured products group, poaching Steve Kenney and Pierce Derkac from CapRok Capital. They will focus on multiple asset classes within structured products, including RMBS, CMBS, ABS, CDOs and CLOs.

    Kenney and Derkac join as svps. Kenney was a senior member of the sales and trading team within securitised products and special situations .......

    Job Swaps 31 January 2017
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