CMBS

  • 'Mixed effects' from rate hikes

    The US Federal Reserve has raised interest rates from 0.25% to a range of 0.50%-0.75%, which will have varied implications for structured finance, according to Moody's. The rating agency adds that it expects the Fed to raise rates three more times in 2017 to 1.25%-1.50% year-end.

    Moody's comments that US consumers are generally "well-positioned to cope with rising debt expenses .......

    News Round-up 15 December 2016

  • Euro issuance drops

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest securitisation data report. This represents a decline of 46.5% from 2Q16 (€75bn) and a decline of 30.3% from 3Q15 (€57.6bn).

    Of the €40.2bn issued, €16bn was placed (representing 39.8% of issuance), compared to €29.3bn placed in 2Q16 (representing 39.1%) and €18.6bn placed in 3Q15 (representing 32.3%). .......

    News Round-up 15 December 2016

  • Euro secondary unmoved

    The Fed's announcement yesterday appears to have had little effect so far as the European securitisation secondary market resolutely sticks to recent patterns.

    There continue to be pockets of activity across the ABS/MBS secondary market. Tone generally remains positive and spreads unchanged with the exception of Portuguese paper, which continues to edge wider.

    However, CLOs are busier in comparison with .......

    SCIWire 15 December 2016

  • LatAm markets 'will rebound'

    Donald Trump's election victory has implications far beyond the US, not least in Mexico, where potential US policy changes will weigh on economic growth. Mexican RMBS should remain steady, however, while Moody's believes Argentina and Brazil are set to return to growth in 2017, helping to support the credit quality of assets backing securitisations in those countries.

    The Mexican RMBS .......

    News Round-up 14 December 2016

  • Houston exposure eyed

    Morningstar Credit Ratings added seven US CMBS loans backed by Houston collateral to its watchlist in November, totalling US$263.5m in UPB, which was over two times the balance added for the second-most active market - Washington, DC. Over the past 12 months, the balance of Houston loans on the agency's watchlist has grown by more than 50% to US$748.1m, moving .......

    News 13 December 2016

  • Euro ABS/MBS ticks over

    The European ABS/MBS secondary market continues to tick over.

    As with the previous week it's been a solid if unspectacular start to this. BWICs continue to drive the action and trade well. For now, sentiment remains positive, albeit with some softening of tone in weaker peripherals, especially Portuguese names.

    There are currently three BWICs on the European ABS/MBS schedule for .......

    SCIWire 13 December 2016

  • Maturity wall shrinking

    Almost US$190bn of US CRE loans in CMBS loans have been paid off or liquidated from the start of 2015 through the first three quarters of 2016, according to Trepp. The firm adds that this represents a large portion of the wall of maturities, which is comprised of CMBS loans with final payment dates between 2015 and 2018. At the start .......

    News Round-up 12 December 2016

  • Retail dominates delinquencies

    US CMBS delinquencies rose by 4bp in November to 3.29% from 3.25% a month earlier, largely due to a shrinking index denominator, according to Fitch's latest index results for the sector. Resolutions of US$527m exceeded new delinquencies of US$410m, while US$8.8bn of portfolio run-off exceeded Fitch-rated new issuance volume of US$2.6bn.

    Both the largest new delinquency and the largest resolution .......

    News Round-up 12 December 2016

  • RFC issued on rent-roll standard

    The commercial arm of the Mortgage Industry Standards Maintenance Organization (MISMO) has released for industry comment a proposed standard for the maintenance and sharing of commercial and multifamily real estate rent-roll information (SCI 20 October). The standard includes 87 fields of property and financial data, as well as an easy way to maintain and share the data through widely used .......

    News Round-up 12 December 2016

  • Maturity defaults inch up

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe increased to 21.8% from 21.1% at end-November. The delinquency rate for continental European senior loans decreased to 67.9% from 68.6%, while the rate for UK loans remained at 34%. Overall, the senior loan delinquency rate decreased to 54.7% from 55.4%.

    .......

    News Round-up 9 December 2016

  • Upstart firm poaches CRE vets

    World Class Capital Group has bolstered its team with several former Credit Suisse hires. The firm has brought on board Paul Smyth, Chris Callahan and Cary Williams, as well as bringing in Jeremy Stoler and Ed Mikus, who will both join in January.

    Smyth is now executive md for World Class Capital and was previously chief credit officer for Credit Suisse's .......

    Job Swaps 9 December 2016

  • Euro secondary keeps positive

    Tone across the European securitisation secondary market continues to be positive.

    After a quiet start to the week, yesterday saw a flurry of BWICs from a range of sectors driving activity, most of which were easily absorbed and traded in line with expectations. Consequently, the bulk of secondary spreads remain unmoved.

    Today sees more supply from a variety of sectors, .......

    SCIWire 8 December 2016

  • CMBS record volume observed

    US CMBS private-label pricing volume totalled US$11.9bn in November, which was the highest monthly volume since September 2014. However, Kroll Bond Rating Agency notes that year-to-date supply of US$64.5bn is still down 28.8% year-over-year.

    There was only one rating downgrade in the month, as well as 364 affirmations. The rating for one class of STRIPs 2012-1 was placed on watch .......

    News Round-up 7 December 2016

  • CMBS pay-offs dip

    Trepp reports that the percentage of US CMBS loans that paid off on their balloon date dipped in November to 66.8%, just below the October level of 68.6%. Over the last four months, the range between the highest and lowest levels has been less than 2%, as a little over two-thirds of the aggregate balance has consistently paid off.

    Last .......

    News Round-up 7 December 2016

  • Arrow enters Italian market

    Arrow Global Group is entering the Italian market with the acquisition of Zenith Service. It will purchase the servicing business for €17m, subject to regulatory approval by the Bank of Italy.

    Zenith is a leading master servicer in the €168bn Italian structured finance market and also services salary assignment loans (CQS). As of June 2016, the estimated stock of the .......

    Job Swaps 6 December 2016

  • CRE platform expands

    Silverpeak Real Estate Finance is expanding its product offering to include non-recourse floating-rate balance-sheet debt and fixed-rate or floating-rate subordinate debt for stabilised or transitional properties. These new capabilities will be funded by additional equity investment from affiliates of Elliott Management Corporation.

    The new products are offered in addition to what has been the firm's core business for the past .......

    Job Swaps 6 December 2016

  • North American outlook 'stable'

    Stability will likely remain for structured finance ratings in the US and Canada next year, although some modest asset-level deterioration is likely as performance in many sectors has peaked, says Fitch. The rating agency adds that annualised net losses for subprime auto ABS could reach 12% in 2017, particularly for less established sub-prime issuers Fitch does not rate.

    The rating agency .......

    News Round-up 6 December 2016

  • LatAm outlook 'stable'

    Latin American structured finance transactions should enjoy a stable credit environment next year, despite subdued economic growth, says Fitch. Around 86% of the agency's rating outlooks for the sector are stable or positive, compared to 80% at the end of last year.

    Fitch's sector outlook is stable for consumer ABS, where adequate credit enhancement and structural features continue to protect .......

    News Round-up 6 December 2016

  • Euro secondary quiet

    The European securitisation secondary market has had another quiet start to the week.

    Italy was unsurprisingly the main focus yesterday, but as with broader markets securitisation secondary was little moved and flows were light. Italian paper has edged out a few basis points and there was some softening of tone in other peripherals, but for the most part ABS/MBS secondary .......

    SCIWire 6 December 2016

  • Call likelihood examined

    Fitch anticipates that an increasing number of US CMBS approaching the end of their expected life will have clean-up call options exercised over the next several years. Obstacles that may impede them from being exercised efficiently include ambiguity in deal documents, a lack of standardisation of processes and potential litigation costs.

    Fitch notes that PSAs for more recently-issued conduit transactions .......

    News Round-up 5 December 2016

  • Servicers brace for CMBS wall

    Some US$12bn of the US$92bn of US commercial loans maturing during 2017 could default and end up in the hands of special servicers, says S&P. There will be nearly US$120bn in outstanding performing loans scheduled to mature through 2018, most of which were underwritten in 2006 and 2007, raising questions about whether special servicers will be ready.

    The year-end delinquency .......

    News 2 December 2016
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