CMBS

  • Pay-offs continue to decline

    The percentage of US CMBS loans that paid off on their balloon date last month dropped to 55.6%, over five points lower than the June level, according to Trepp. This marks the fourth straight month that the rate has declined and is the lowest reading since last December.

    The July tally is below the 12-month moving average of 67.0%. By .......

    News Round-up 9 August 2016

  • Maturity wall diminishing

    Approximately US$23bn of Fitch's US CMBS fixed-rate loan universe is still scheduled to mature during 2H16, excluding loans that have already been defeased, with an additional US$61bn in 2017. The remaining 2016 maturities include US$8bn in Q3 and US$15bn in Q4. At the same time last year, however, US$54bn was scheduled to mature in 2016 and US$69bn in 2017.

    Among .......

    News Round-up 8 August 2016

  • Specially serviced loans increase

    Moody's reports the share of specially serviced US conduit CMBS loans increased by 82bp to 6.86% in 2Q16 from 6.04% the previous quarter. However, this share remains 586bp below the April 2011 peak of 12.72%.

    The share of delinquent loans rose to 4.6% from 4.4% the prior quarter too. Moody's commercial mortgage metrics weighted average base expected loss consequently rose to 4.6% .......

    News Round-up 5 August 2016

  • Spanish NPL portfolios purchased

    Bain Capital has acquired three Spanish NPL portfolios for €1.15bn, extending the firm's holdings to six Spanish portfolios. The purchases include a €415m pool from Banco Sabadell, which comprises defaulted first-lien bilateral Spanish loans to real estate developers, primarily secured on residential and commercial real estate assets.

    The largest purchase is a €511m portfolio from Grupo Cooperativo Cajamar, which holds .......

    News Round-up 4 August 2016

  • CMBS delinquencies move up again

    Trepp's US CMBS delinquency rate moved higher for the fifth straight month in July to 4.76%, an increase of 16bp from June. The rate is now 61bp above its multi-year low of 4.15%, which was reached in February of this year.

    In July, CMBS loans that were previously delinquent but paid off with a loss or at par totalled about .......

    News Round-up 3 August 2016

  • Brexit CRE impact gauged

    The UK's vote to leave the EU will be negative for the country's CRE market and, subsequently, UK CMBS transactions, reports Moody's. UK CRE values could decline by up to 10%, depending on the property type, quality and location.

    The figure is estimated by the agency from a base case scenario with a new UK-EU trade agreement and UK GDP growth .......

    News Round-up 3 August 2016

  • Loss risk improves for GSE CRTs

    Expected mortgage losses on seasoned GSE CRT transactions are trending positively, says Fitch. The loss projections are driven by strong loan performance to date, a shorter loss exposure window until deal maturity and steady home price growth.

    Coupled with bond deleveraging, the improvement in projected pool losses has resulted in positive rating momentum for the rated classes. Fitch has upgraded .......

    News Round-up 2 August 2016

  • Watershed US CMBS deal prepped

    The first CMBS to include a retained interest intended to meet the definition of an eligible vertical interest under US risk retention rules has hit the pipeline. The US$870.6m WFCM 2016-BNK1 will be issued with sponsors Wells Fargo, Bank of America Merrill Lynch and Morgan Stanley retaining a combined 5% vertical slice in the deal.

    US risk retention rules come .......

    News Round-up 2 August 2016

  • Hastings closures pose risks

    The beginning of Hastings Entertainment's store closures are not expected to pose a major risk to CMBS, but 19 loans still pose some unwanted exposure, according to Morningstar Credit Ratings. This batch of small loans come to a balance of US$253.9m, with only one exceeding US$19m.

    Although the impact is not expected to be profound, Hastings is a large tenant .......

    News Round-up 1 August 2016

  • CMBS 2.0 maturity defaults spike

    US CMBS 2.0 loans saw a substantial rise in maturity defaults during the first half of 2016, reports Fitch. Across the 2010-2016 vintages, 32 loans totalling US$302.1m defaulted, which is up from just eight loans totalling US$69m during the same stretch the previous year.

    The increase was driven by loans with exposure to oil and gas, including properties in Houston. There was also .......

    News Round-up 1 August 2016

  • REIT cuts securitisation business

    The board of directors of Two Harbors Investment Corp has approved a plan to discontinue the company's mortgage loan conduit and securitisation business, with the wind-down process expected to be substantially completed this year. The decision has been taken as a result of challenging market conditions and an intention to reduce operating complexity and costs.

    "I am extremely proud of .......

    Job Swaps 29 July 2016

  • Commerical loan originations rise

    Commercial and multifamily mortgage loan originations pushed up by 17% in 2Q16 from the previous quarter, according to the Mortgage Bankers Association's latest results on the sector. However, the results were not drastically different from the same time last year, with just a 1% increase, while CMBS loan originations contrastingly dropped.

    "Low interest rates combined with strong commercial property market fundamentals .......

    News Round-up 29 July 2016

  • Euro secondary slow

    The summer slowdown is manifesting itself across the bulk of the European securitisation secondary market.

    "It's been very quiet in the past few days with flows down significantly and BWIC volumes subdued," says one trader. "That's all thanks to the lack of volatility and the start of the summer lull."

    However, the trader adds: "We have seen some enquiries in UK .......

    SCIWire 26 July 2016

  • Loan leverage stabilising

    The credit profile of US conduit CMBS loans was substantially unchanged between the first two quarters of this year, according to Moody's. The agency reports that conduit loan leverage has plateaued at roughly its pre-crisis peak, as measured by Moody's loan-to-value (MLTV) ratio.

    "With US commercial property prices flat for the past two quarters, stable underwritten LTV has resulted in .......

    News Round-up 25 July 2016

  • Transaction head hired

    CBRE has recruited Vishnu Reddy as a senior director and head of transaction management within its capital advisors' debt and structured finance team. In the role, Reddy will focus on coordinating deal execution, as well as utilising previous experience to provide a legal function for supporting clients. He joins from BNP Paribas, where he was a real estate loan portfolio .......

    Job Swaps 21 July 2016

  • CBL-linked liquidation highlighted

    One of LBUBS 2006-C6's more storied assets, the Chapel Hill Mall (accounting for 5.7% of the pool), has been sold after being REO for nearly two years. The liquidation is the first of several anticipated dispositions linked to sponsor CBL & Associates Properties, including several specially-serviced loans in LBUBS 2006-C6, according to KBRA.

    Kohan Retail Investment Group reportedly acquired the .......

    News Round-up 21 July 2016

  • Ralph Lauren exposure gauged

    Ralph Lauren last month announced plans to restructure, including the closure of about 50 of its retail locations. The firm has not yet disclosed which stores will be affected, but Morningstar Credit Ratings has identified 30 US CMBS loans - with an allocated balance of US$1.44bn - with exposure to Ralph Lauren brands.

    The firm's retail space totals more than 20% .......

    News 21 July 2016

  • Euro secondary firm

    Spreads across the European securitisation secondary market are remaining firm.

    Wider market positivity is feeding in to European ABS/MBS and generating improving market sentiment. While activity remains sporadic with volumes varying significantly from session to session spreads are flat to slightly tighter across the board this week so far.

    In CLOs, limited supply is continuing to support spreads across the .......

    SCIWire 21 July 2016

  • US CMBS supply surges

    The US CMBS market came to life last week, as a high volume of bid-list paper made the rounds. Activity is expected to remain healthy this week.

    "BWIC volume came close to US$4bn last week for investment grade paper alone, with another US$1.5bn or so of below-investment grade paper. Typically we have been seeing around US$2.5bn of investment grade per .......

    SCIWire 19 July 2016

  • CRE CDO switches jurisdiction

    All membership interests in the DivCore CLO 2013-1 CRE CDO, together with the issuer's ordinary and preferred shares are set to be transferred from DivCore Sub Debt Club I REIT Holding to a newly established entity, LoanCore Capital Credit REIT (LCC REIT). Moody's notes that the move will not cause it to downgrade or withdraw its ratings on the notes.

    News Round-up 18 July 2016

  • CMBS defaults move up

    S&P's 12-month European CMBS loan maturity default rate moved up to 7.3% from 7% at the end of June. This coincides with a drop in the delinquency rate for continental European senior loans to 58.4% from 58.7%, while the rate for UK loans remained at 19.6% to end last month. On an overall basis, the senior loan delinquency rate decreased .......

    News Round-up 14 July 2016
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