CMBS

  • Bank shuffles SF pros

    Credit Suisse has made a series of changes to its asset finance team, with a number of structured finance pros changing roles. Among the changes, Jay Kim has been promoted to global head of structured products.

    Kim's promotion follows the appointment of Brian Chan, former co-head of credit and securitised products, to the firm's board with the new role of .......

    Job Swaps 23 September 2016

  • Commercial mortgage defaults down

    US commercial mortgage annual loan defaults have continued to decline from their 2010 peak, with Kroll Bond Rating Agency noting defaults declined 26% in 1H16, falling to 199. Over the same period last year, the number was 268.

    Kroll's study includes 92,415 commercial real estate loans primarily originated for securitisation between 1995 and June 2015. Of these, through June 2016, .......

    News Round-up 22 September 2016

  • Dock Street brought in for CRE CDO

    Dock Street Capital Management has been named as replacement collateral administrator to JPMorgan-CIBC 2006-RR1. Under the terms of the appointment, Dock Street will now assume all responsibilities, duties and obligations of the collateral manager under the applicable terms of the collateral administration agreement.

    Moody's says there will be no rating impact, in part due to Dock Street's experience and capacity to .......

    Job Swaps 21 September 2016

  • CMBS 'unaffected' by floods

    Recent floods in Louisiana could stress the state's cash balance but CMBS deals there are unlikely to be affected in the near term - despite elevated risk (SCI 8 September) - according to Fitch. The agency comments that despite damage totalling US$8.7bn throughout the state, properties linked to CMBS rated by Fitch are largely unscathed.

    The rating agency states that throughout the .......

    News Round-up 21 September 2016

  • Fresh Sears closures announced

    Seritage Growth Properties, the Sears REIT spin-off, has exercised its right to terminate the leases at 17 unprofitable stores, with all 17 understood to be Kmart stores. The JPMCC 2015-SGP CMBS, which is secured in part by the borrower's interests in 235 wholly-owned properties, is affected.

    Seritage's business plan is to recapture, redevelop and re-lease space at each property to .......

    News Round-up 21 September 2016

  • Macy's impact considered

    While Macy's is yet to release a list of which stores will be closing (SCI 18 August), closures are expected to begin in early 2017. Fitch reports that there are 86 properties backing 104 loans across 79 CMBS where Macy's is a top-five tenant.

    Most of these properties are located in regional malls, with a smaller number of retail centres .......

    News Round-up 20 September 2016

  • Bankruptcy poses CMBS concerns

    Morningstar Credit Ratings finds elevated risk in 17 commercial mortgages with exposure to Golfsmith International Holdings, amounting to an allocated property balance of US$365.5bn. Golfsmith filed for bankruptcy on 14 September, resulting in the closure of 20 stores - two of which are properties backing loans in CMBS, totalling US$42.6m in allocated property balance.

    Golfsmith is also the anchor tenant .......

    News Round-up 20 September 2016

  • Canadian CMBS outlook 'positive'

    DBRS maintains a positive outlook for Canadian CMBS as the market continues a period of elevated refinance activity brought on by the maturity of the 10-year CMBS bonds from the 2005-2007 vintages. Despite the positive outlook, the rating agency notes there are several potential risks, such as the weaker economic environment in Canada and the contraction in the jobs market .......

    News Round-up 16 September 2016

  • Agency investing

    Growing agency CMBS market attracts investors

    Combined Fannie Mae and Freddie Mac CMBS issuance is expected to come close to US$100bn for the year, with agency CMBS comfortably outstripping non-agency supply. While the agency CMBS market has historically been small, it is growing rapidly and there are attractive opportunities for investors to take advantage of.

    "The agency CMBS market has grown a lot over the last .......

    News Analysis 16 September 2016

  • CMBS 1.0 late-pays rising

    Fitch reports that US CMBS delinquencies fell last month for the first time since March, even though late-pays on older vintages continue to rise. Delinquencies declined by 5bp in August to 3.15% from 3.20% a month earlier.

    Portfolio run-off of US$8.1bn outweighed new issuance volume of US$4bn from six transactions in July, causing a decrease in the overall index denominator. .......

    News Round-up 12 September 2016

  • CRE investment firm founded

    An independent commercial real estate investment management firm has launched, funded by new investors and a management team that has moved from FirstKey Lending. Dubbed Allegiant, it has also inked advisory and consulting agreements with FirstKey over its existing US$215m loan portfolio.

    Additionally, Allegiant will deploy up to US$500m for investment in and management of commercial real estate debt opportunities, .......

    Job Swaps 12 September 2016

  • Euro CMBS delinquencies rise

    At the end of August 2016, the European CMBS 12-month rolling loan maturity default rate rose to 24.4% from 11.9%, according to S&P. The delinquency rate on continental European senior loans increased to 63.9% from 59.6%. In the UK it rose to 25.4% from 21.8%, meaning the total senior loan delinquency rate for Europe increased to 50% from 46.1%.

    .......

    News Round-up 12 September 2016

  • Resource America acquisition completed

    C-III Capital Partners has finalised its acquisition of Resource America, with the move approved last month (SCI 26 August). Resource America stockholders will be entitled to US$9.78 per share in cash, which equates to a total of around US$207m.

    "This is a transformative acquisition for C-III," says Andrew Farkas, chairman and ceo of C-III. "With our expanded platform, we are .......

    Job Swaps 9 September 2016

  • Flooding raises CMBS fears

    More than 300 properties backing CMBS loans may be at elevated risk due to major flooding in Louisiana last month, says Morningstar Credit Ratings. There are 302 properties, with an allocated property balance of US$1.1bn, potentially affected.

    The properties back 214 loans in CMBS. Almost all are located in the Livingston and East Baton Rouge parishes of the state. While .......

    News Round-up 8 September 2016

  • Balloon payoffs spike in August

    The percentage of loans that paid off on their balloon date rebounded in August to 68.4%, rising from 55.6% in July, notes Trepp. It is the first monthly increase since March and surpassed the 12-month moving average of 66.5%.

    By loan count rather than balance, 72.3% of loans paid off in August. The 12-month rolling average by loan count is .......

    News Round-up 7 September 2016

  • Mall sentiment eyed

    The price of CBL & Associates Properties' stock moved higher over the course of August, while the Markit CMBX.BB.6 index moved lower, marking the first time this year that the two have disconnected. Morgan Stanley CMBS strategists believe this disconnect may present an opportunity and suggest three different trades through which to capitalise on it.

    "The debt markets are pricing .......

    News 6 September 2016

  • Euro secondary stays positive

    The positive tone continues across the European securitisation secondary market.

    Although the US public holiday has hampered activity so far this month, secondary spreads across European ABS/MBS and CLOs have continued to edge in since 1 September. UK non-conforming paper continues to lead the way boosted by the dearth of primary supply and the upcoming Aire Valley refinancing, combined with the .......

    SCIWire 6 September 2016

  • Delinquencies reverse course

    The Trepp CMBS delinquency rate reversed course in August and dropped for the first time since February. The US CMBS delinquency rate now stands at 4.68%, a decrease of 8bp from July.

    The rate is 77bp lower than the year-ago level and 49bp lower since the beginning of the year. The multi-year low of 4.15% was reached in February 2016 .......

    News Round-up 5 September 2016

  • FRESB loan transferred

    The first significant credit issue to hit a FRESB CMBS occurred last month. The US$3.1m Park Place Apartments loan, securitised in FRESB 2016-SB17, became one-month delinquent and transferred to special servicing.

    Backed by an Elk City, Oklahoma property built in 1985, the loan was originated by Hunt Mortgage in April 2016, according to Wells Fargo structured product analysts. Per the .......

    News Round-up 5 September 2016

  • CMBS defaults anticipated

    More than a quarter of current US non-agency CMBS loans maturing through year-end 2017 will face difficulty refinancing, says Kroll Bond Rating Agency. A spike in maturity defaults is expected in 2Q17.

    KBRA believes 26.1% (US$33.4bn) of loans maturing through year-end 2017 will face difficulty refinancing, based on an analysis of 8,590 current non-agency CMBS loans totalling US$128.2bn with maturity .......

    News 1 September 2016

  • Office Depot closures analysed

    Office Depot's announced plans to shut down 300 stores over the next three years has elevated the risk on US$956.6m in mortgages tied to CMBS, says Morningstar Credit Ratings. The riskiest loans are those with leases expiring before the end of 2018, with either a DSCR below 1.2x or a collateral vacancy rate that falls below 80% if Office Depot were .......

    News Round-up 1 September 2016
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