CMBS

  • 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

  • Risk retention to affect CMBS liquidity

    The impending US risk retention rule could hamper liquidity for maturing CMBS loans, says Morningstar Credit Ratings. The rule comes into effect on 24 December (SCI passim).

    The agency believes loans maturing this month may suffer from a decrease in liquidity. It says the potential liquidity contraction will add to the refinancing challenge of 2007 vintage loans, many of which .......

    News Round-up 2 December 2016

  • Loss severity spikes

    Trepp's latest US CMBS loss analysis reflects a spike in the average loss severity of loan dispositions. For the month of November, US$671m across 58 loans was liquidated with losses. Average loan size fell from US$15.5m in October to US$11.6m, while the monthly loss rate for all loans climbed to 56.38%.

    Accounting for nearly 40% of last month's total liquidated .......

    News Round-up 2 December 2016

  • Delinquencies continue to climb

    The Trepp US CMBS delinquency rate continued to climb in November, reaching 5.03%, an increase of 5bp from October. The rate is now only 10bp lower than the year-ago level and 14bp lower since the beginning of the year.

    CMBS loans that were previously delinquent but paid off with a loss or at par totalled about US$800m last month. Removing .......

    News Round-up 1 December 2016

  • Euro ABS/MBS distracted

    New deals are continuing to keep focus way from the European ABS/MBS secondary market.

    "Primary is still distracting most players, with a couple of new deals in particular drawing most attention right now," says one trader. "The Red & Black autos deal is pretty straightforward, but the next Towd Point issue is more complex and it's taking a bit of .......

    SCIWire 1 December 2016

  • Recovery analysis RFC issued

    S&P is requesting feedback on its structured finance recovery analysis of US RMBS, US and Canadian CMBS and global CLOs. The rating agency's intention is to provide information that looks beyond its first-dollar-of-loss credit ratings in cases where its credit ratings are limited because of timeliness of payments, and to facilitate greater credit differentiation within its existing credit rating categories.

    News Round-up 30 November 2016

  • Retailer's exposure 'at risk'

    Hhgregg has reported lower earnings for the second fiscal quarter ended 30 September, following a series of store closures. Morningstar Credit Ratings suggests that the move may foreshadow a decline in the retailer's brick-and-mortar presence, potentially putting 43 properties backing US CMBS loans - totalling US$2.64bn in allocated property balance - at risk.

    "While we do not expect a slew .......

    News Round-up 30 November 2016

  • Strong performance spurs SFR upgrades

    The class B, C and D notes of Invitation Homes 2013-SFR1 have been upgraded by Moody's as a result of the steady build-up in equity in the properties backing the securitisation. IH 2013-SFR1 was the first-ever single-family rental securitisation (SCI 1 November 2013) and the move marks the first-ever upgrade for the segment.

    Moody's has upgraded the class B notes .......

    News Round-up 29 November 2016

  • Class X CMBS cash put aside

    The note trustee for Titan Europe 2006-5, US Bank (previously ABN Amro), has instructed the cash manager to retain €50m to provide for potential liability arising from class X noteholder contentions. As with a further four other Titan deals which are subject to class X noteholder litigation, it is unknown whether additional class X interest following default will ultimately rank .......

    News Round-up 29 November 2016

  • Euro secondary surge

    There is a surge in activity throughout the European securitisation secondary market.

    Activity has picked up across the board following the US holiday last Thursday and this week is seeing a notable pick-up in BWICs either side of month-end. Until now the buying bias remains and spreads have held up in the majority of sectors. However, continuing concern around the .......

    SCIWire 29 November 2016

  • Innovative Griffon deal welcomed

    Griffon Funding - which Barclays closed in September - has been hailed as an innovative model for banks seeking to reduce their regulatory capital requirements. The £2.43bn privately-placed true sale balance sheet CMBS is backed by 57 loans secured by 1,516 properties and over 12,000 lease contracts.

    Carlos Terré, deputy head of structured finance at Scope and lead analyst, states .......

    News 28 November 2016

  • Sporadic issuance projected

    European CMBS new issuance will focus on riskier loans in 2017, according to Moody's. The agency expects volume to be sporadic, as issuance focuses on more complex loans, coupled with bond pricing fluctuations in the wider securitisation market.

    Pricing will continue to be the main restriction for new issuance. Moody's anticipates wider securitisation market volatility, which is in stark contrast .......

    News Round-up 28 November 2016

  • 2017 CMBS slowdown expected

    A recent recovery in US CMBS issuance will not be sufficient to balance out an anaemic first half of the year, says Kroll Bond Rating Agency. The start of 2017 is also expected to be slow, and full-year 2017 issuance is predicted to undershoot 2016.

    CMBS issuance grew for six straight years before stopping abruptly this year as the global .......

    News Round-up 24 November 2016

  • Euro ABS/MBS firm

    Tone remains firm in the European ABS/MBS secondary market albeit on low volumes.

    Inevitably with the US Thanksgiving holiday flows have been very light over the past couple of sessions and look set to stay that way for the rest of the week. Nevertheless, sentiment remains positive across the bulk of sectors and consequently secondary spreads are unmoved. Even Italian .......

    SCIWire 24 November 2016

  • Loss severity spikes

    US CMBS loan losses jumped well beyond the historical weighted average loss severity during 3Q16, Moody's reports. The weighted average loss severity increased to 52% for the loans liquidated during the quarter from 41.3% in the prior quarter, well above the historical weighted average of 42.9% for loans liquidated between 1 January 2000 and 30 September 2016.

    "In the third .......

    News Round-up 22 November 2016

  • Exchangeable CMBS retention tested

    Deutsche Bank and Citi are working together to bring another risk retention-compliant US CMBS to the market, just weeks before risk retention rules officially come into force. Unlike previous compliant CMBS, Kroll Bond Rating Agency notes this will be the first where a portion of the retained interests are expected to be assigned credit ratings if the sponsors exchange their .......

    News Round-up 17 November 2016

  • CMBS tools developed

    DBRS has introduced commercial real estate Market Index and Market Rank tools for the US and Canada. They are offered as part of the DBRS CMBS reporting platform IReports.

    DBRS notes that in times of economic stress, real estate capital availability contracts and may limit investment to more highly populated markets with greater liquidity and comparatively higher transparency. Defaulted loans .......

    News Round-up 17 November 2016

  • Euro ABS/MBS unchanged

    There's been little movement in the European ABS/MBS secondary market this week, so far.

    While sentiment continues to be positive, volumes have remained low this week as most investors appear content to sit on the sidelines for now. What activity there has been has revolved around prime assets and Street trading. Consequently, ABS/MBS secondary spreads across the board have remained .......

    SCIWire 17 November 2016

  • Retail pushes delinquencies up

    US CMBS delinquencies climbed by 7bp to 3.25% last month, as retail late-pays continue to increase, according to Fitch's latest index results for the sector. New delinquencies of US$789m exceeded total resolutions of US$535m, while portfolio run-off of US$7.6bn exceeded Fitch-rated new issuance volume of US$6.6bn across seven transactions, causing a decrease in the overall index denominator.

    The agency notes .......

    News Round-up 15 November 2016

  • Euro secondary softens

    Declines in the bond market have begun to feed into the European securitisation secondary market.

    While sentiment continues to be generally positive across secondary, investor interest appears to have thinned since the end of last week with the spike in rate volatility. At the same time, some softness is appearing in spreads in certain sectors.

    Peripheral and UK RMBS are .......

    SCIWire 15 November 2016

  • Euro secondary stable

    The European securitisation secondary market remains stable despite wider market volatility.

    The continuation of the buying bias and positive tone seen in secondary ABS/MBS in recent weeks ensured all sectors remained insulated from the big moves seen in equities and broader credit yesterday. Consequently, spreads were unchanged on the day and have stayed the same into this morning's open.

    Inevitably .......

    SCIWire 10 November 2016
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