CMBS

  • 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

  • Pay-offs move higher

    The percentage of US CMBS loans that paid off on their balloon date moved modestly higher in October to 68.6%, slightly above the September level of 66.9% and the 12-month moving average of 66.4%, according to Trepp. By loan count as opposed to balance, 77.1% of loans paid off last month.

    On this basis, the pay-off rate was about 10 .......

    News Round-up 9 November 2016

  • EMEA delinquencies inch up

    The 12-month rolling European CMBS loan maturity default rate in S&P's rated universe decreased to 21.1% from 29.8% in October. The delinquency rate for continental European senior loans increased to 68.6% from 67.8% during the month, while the rate for UK loans increased to 34% from 32.7%. Overall, the senior loan delinquency rate rose to 55.4% from 54.5%.

    .......

    News Round-up 9 November 2016

  • US property prices hit landmark

    The Moody's RCA/Commercial Property Price Indices (CPPI) US all-property composite index increased 0.7% in September. Property prices are now up more than 100% since the January 2010 financial crisis trough.

    Apartment prices rose 1% in September and prices in the larger core commercial segment rose 0.6%. Property prices are now up 21% on the November 2007 pre-crisis peak, with apartment .......

    News Round-up 8 November 2016

  • Euro ABS/MBS distracted

    Activity in the European ABS/MBS secondary market continues to be light with participants focusing elsewhere.

    "Secondary is still relatively quiet," says one trader. "The market continues to be distracted by primary, where there are currently a couple of new issues that we're working on, and obviously events in the US are also taking some attention today."

    Nevertheless, the trader continues: .......

    SCIWire 8 November 2016

  • Technology agreement inked

    CR has signed an agreement with Oxane Partners, which will see the two firms work in close cooperation to deliver industry-leading systems and technologies to support CR's expanding asset and loan management functions. As part of the agreement, CR has acquired an equity stake in Oxane.

    The cooperation with Oxane will cover work within a number of areas, including analytics, .......

    Job Swaps 7 November 2016

  • CMBS losses analysed

    Loss percentages for US CMBS loans reached a peak of 14.15% in 2011, but have since moved as low as 4% for loans liquidated in January 2015 or later, notes Trepp. For loans that resolved this year the average loss severity has declined consistently, from 6.41% in 4Q15 to 2.31% in 3Q16.

    While total sector losses have declined along with .......

    News Round-up 4 November 2016

  • Delinquencies rise as maturities bite

    The Trepp US CMBS delinquency rate increased by 20bp in October to 4.98% and is now 19bp lower since the beginning of the year and only 25bp lower than the year-ago level. The rate began to rise in March as loans from the 2006 and 2007 vintages started reaching their maturity dates, causing the reading to move higher in seven .......

    News Round-up 3 November 2016

  • Liquidity facility costs cause burden

    Taurus (Pan-Europe) 2007-1 wishes to cancel its liquidity facility, after costs escalated sharply. The issuer has therefore contacted noteholders to seek permission.

    The liquidity facility provider originally wrote to the issuer to outline the effect that a change to the rating on the notes has had on costs associated with maintaining the liquidity facility. The level of increased costs incurred .......

    News Round-up 3 November 2016

  • Servicer continues Euro expansion

    Situs has acquired Hatfield Philips International from Starwood Property Trust, with its combined assets under management globally now totalling US$160bn. As part of the transaction, Starwood Property Trust will retain a non-controlling minority interest in Situs.

    "The European market is a dynamic and exciting place for debt servicers currently, as banks continue to deleverage their balance sheets amid regulatory pressure .......

    Job Swaps 3 November 2016

  • Deep pockets?

    Alternative investors could fill CMBS refinancing gap

    As a wave of US CMBS loans originated from 2004 to 2008 is set to mature over the next 18 months, there are concerns about the ability of these loans to refinance. However, some believe that the sector will see smaller losses than previously had been expected as alternative investment sources inject the required capital.

    US$566bn of non-agency conduit CMBS .......

    News Analysis 3 November 2016

  • CMBS structured to meet risk rules

    Morgan Stanley has once again teamed up with Wells Fargo and Bank of America to market a US CMBS structured to satisfy risk retention rules on both sides of the Atlantic. MSCI 2016-BNK2 is sized at a little over US$700m (see SCI pipeline) and is understood to be the third private bond designed to meet risk retention requirements .......

    News Round-up 2 November 2016

  • CMBS partner poached

    Reed Smith has appointed Jodi Schwimmer as a partner in its global financial industry group in New York. She was most recently a partner at Dechert and brings with her two associates integrated into her practice - Samantha Chertoff and Carla Moore.

    Schwimmer's practice focuses on CMBS, real estate finance and structured finance, representing issuers, underwriters, loan sellers and investors .......

    Job Swaps 2 November 2016

  • Euro secondary patchy

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

    After a primarily quiet week last week, Friday saw a slight pick-up in volumes, which followed through into Monday in advance of month-end. However, activity across the board remains patchy and is further hampered by European public holidays this week and broader market volatility driven by negative headlines in .......

    SCIWire 2 November 2016

  • Dispositions tick up

    Trepp's October loss analysis shows a continued up-tick in US CMBS loan dispositions. The average loss severity for loans with losses greater than 2% is 63.12% for October, an increase of 3.79 percentage points from September's tally. Average loan size also climbed to its highest level since January at US$15.5m.

    Several large office loans were liquidated last month, backed by .......

    News Round-up 1 November 2016

  • Default rate dips

    Fitch's cumulative loan default rate for fixed-rate US CMBS fell slightly to 12.7% as of 3Q16, slightly lower than the 12.9% rate at end-2Q16 and 13.2% one year ago. The decline is due to steady issuance levels, combined with overall low term default rates, according to the agency.

    In 3Q16, 39 loans totalling US$387m newly defaulted during their loan term, .......

    News Round-up 31 October 2016

  • Higher margins for Euro CMBS

    European CMBS will remain a non-prime financing tool, according to Moody's. The agency believes that to guarantee excess spread in new deals, loans with higher margins will have to be originated, resulting from riskier features.

    Such features could include weaker property quality, non-standard property type or non-core jurisdictions. Moody's suggests that direct lending and syndication are currently more attractive than CMBS .......

    News Round-up 31 October 2016

  • CMBS market craving liquidity

    Investors believe CMBS offers the best relative value compared to other asset classes, according to a recent Deutsche Bank survey. It also finds that CMBS investors' main concern is lack of secondary market liquidity, which could be having a knock-on effect on investment, particularly in long-duration CMBS paper.

    In terms of whether investors would look to increase or decrease their .......

    News 28 October 2016

  • Borrower advocate role recognised

    Morningstar Credit Ratings has awarded a MOR CV2 ranking to 1st Service Solutions for its extensive advocacy for CMBS borrowers. The firm, which pioneered the industry for borrower advocates in CMBS loan restructurings and assumptions, is the first to earn such a distinction.

    Founder and ceo of 1st Service Solutions Ann Hambly responded to the news by stating that "we .......

    News Round-up 27 October 2016

  • SFR refi incentive boosted

    Total home equity has increased by 27% since issuance across the 71,955 properties underlying the 18 single-family rental securitisations issued in 2013-2015, according to Deutsche Bank figures. The trend is expected to boost SFR issuers' refinance incentive.

    Based on property-level data released by the SFR issuers, Deutsche Bank RMBS analysts estimate that the aggregate BPO value of these properties increased .......

    News 27 October 2016

  • CMBS A/B mod considered

    The US$47.5m Herndon Square Office Park loan securitised in CGCMT 2007-C6 appears set for a modification with an A/B split, based on October special servicer comments. An A/B modification has been offered by the borrower and is currently being negotiated.

    Trepp notes that the value of the collateral behind the loan was sharply reduced last month. The loan was sent .......

    News Round-up 27 October 2016
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