CMBS

  • Job swaps round-up - 12 May

    Amicus briefs

    The LSTA has joined The Clearing House and the American Bankers Association to file amicus briefs in cases initiated by the State of Colorado against Avant and Marlette, both of which have bank partners (WebBank and Cross River Bank respectively). In January, Colorado regulators sued the two marketplace platforms, claiming that their loans are subject to Colorado interest .......

    Job Swaps 12 May 2017

  • Pari passu exposure highlighted

    DBRS has updated its Pari Passu Index for loans in US CMBS transactions issued after 2010. The results show that an unusually large volume of pari passu notes were included in CMBS deals last year, accounting for US$23bn of loans and 489 pieces.

    The pari passu loan structure allows originators to make large commercial real estate loans and CMBS issuers .......

    News 9 May 2017

  • Euro ABS/MBS quiet

    Despite the resolution of the French presidential election the European ABS/MBS secondary market remains quiet.

    "Overall, it's still very quiet," says one trader. "We had a new Bavarian SKY issue announced yesterday, but that's the first primary deal in a few weeks."

    The trader continues: "In secondary not much happened between the two rounds of the French presidential election. We're .......

    SCIWire 9 May 2017

  • Lipstick Building lease CMBS prepped

    Credit Suisse is in the market with a single-asset/single-borrower CMBS secured by two of three land parcels beneath 885 Third Avenue in New York, known as the 'Lipstick Building'. Dubbed CSMC Trust 2017-LSTK, the US$272m transaction is sponsored by a joint venture between BVS Acquisition Co and Shanghai Municipal Investment (Group) USA.

    The collateral comprises the fee simple interest in .......

    News 5 May 2017

  • GSE CRT value explored

    High-LTV GSE credit risk transfer (CRT) deals differ from low-LTV ones in more ways than just LTV ratio. While controlling for these differences shows worse delinquencies for high-LTV deals, loss severities are actually better, and therefore high-LTV CRTs could provide compelling opportunities for spread pickup.

    When Fannie Mae and Freddie Mac launched their CRT programmes in 2013, reference pools consisted .......

    News 28 April 2017

  • SFR composition trends analysed

    Fewer distressed buying opportunities for institutional investors in single-family rental houses has led to a shift of securitised properties from the southwest US to the southeast. A new Morningstar Credit Ratings analysis highlights that the composition of future issuance in the sector will depend on market-driven property acquisition and disposition strategies.

    After peaking in 2014, fewer single-borrower SFR properties are .......

    News 28 April 2017

  • 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
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