CMBS

  • RFC issued on IO clarification

    Moody's is seeking comment on a proposed clarification to the methodology it uses to rate interest-only (IO) securities regarding when ratings will be withdrawn. If the content of this RFC is adopted as proposed, the agency would withdraw the ratings of approximately 35 US CMBS IO classes that have reference principal balances of zero, since the debt-like obligation associated with .......

    News Round-up 4 July 2016

  • UK sovereign-linked deals downgraded

    Fitch has downgraded 18 tranches, and placed another two on rating watch negative, from six transactions which are credit-linked or have significant direct credit exposure to the UK sovereign. The rating actions follow the downgrade of the country's long-term issuer default rating to double-A earlier this week.

    Annington Finance No.1 and Sceptre Funding No.1 rely entirely on rental payments from .......

    News Round-up 1 July 2016

  • JQH exposure eyed

    Last Sunday's John Q Hammons Hotels & Resorts bankruptcy protection filing is being closely monitored by Kroll Bond Rating Agency. The rating agency has identified five loans across 10 CMBS with an aggregate balance of US$690m that are impacted by the filing.

    Kroll rates four of the 10 securitisations. No ratings are being put on watch at this time.

    The .......

    News Round-up 1 July 2016

  • Rating agency increases reach

    Scope Corporation is set to acquire FERI EuroRating Services, effective from the start of August. The firm intends to establish itself as the European alternative to the US rating agencies.

    Scope Group intends to spread its business across three areas under Scope Corporation. Scope Ratings will be responsible for all credit rating activities; Scope Analysis will be in charge of .......

    Job Swaps 30 June 2016

  • CMBS liquidations move up

    US CMBS liquidation volume was below the 12-month average in June, according to Trepp. Disposition activity reached US$809.3m for the month, which is below the US$902.9m average but up from US$501.5m in April and US$854.5m in May.

    The average loan size liquidated also dropped to US$10.1m across 80 loans, below the US$13.4m average figure over the past 12 months. In addition, seven loans worth .......

    News Round-up 30 June 2016

  • Settlement reinvestment options weighed

    Current holders of non-agency RMBS from 512 Countrywide deals have finally received almost US$8bn in cash payments, five years after the original settlement (SCI passim). As investors look to put the cash back to work, Morgan Stanley analysts believe other securitised products would make a natural destination for reinvestment.

    The Countrywide settlement covers breaches of certain representations and warranties as .......

    News 29 June 2016

  • SF upgrades keep momentum

    The global structured finance upgrade rate reached a record high in 2015, according to S&P. Although the downgrade rate was still higher at 11.2% last year, the upgrade rate increased to an all-time high of 9.8% in 2015 and a jump from 8.4% in 2014.

    Downgrades were up from 10% in 2014, but still presented a slow-down in growth for all but .......

    News Round-up 28 June 2016

  • Freddie K-series defeasance soars

    Close to 30% of Freddie Mac K-series eligible first mortgages have either defeased or taken on supplemental debt, says Kroll Bond Rating Agency. Out of 75 rated five-, seven- and 10-year K-series fixed rate transactions with a current outstanding principal balance of US$97.9bn, 8.6% have defeased and 19.9% have taken on supplemental debt.

    To be eligible for defeasance, first mortgages .......

    News Round-up 28 June 2016

  • Euro secondary sidelined

    Most participants are waiting on the sidelines in the European securitisation secondary market amid broad market volatility.

    Two sessions on from the Brexit vote and liquidity remains thin across the board, but there is yet to be any sign of the tailspin seen in wider markets. Dealers in every sector widened their bids on Friday but other than some opportunistic .......

    SCIWire 28 June 2016

  • Special servicer transfers accelerating

    Fitch has observed US CMBS loans transferring to special servicing at an accelerated pace through the first six months of this year. The agency expects this trend to continue for the remainder of 2016.

    At year-end 2015, Fitch identified approximately US$65bn of conduit loans scheduled to mature in 2016. Of that amount, US$10bn was already defeased and US$11bn was already .......

    News Round-up 27 June 2016

  • Agency recruits trio

    Morningstar Credit Ratings has made a trio of new hires in New York, including Lea Overby as md, leading structured finance research. This position is a newly created role for the agency, which will see Overby head up structured finance initiatives and support its analytical team in MBS, ABS and CLOs.

    Prior to moving, her most recent role was as executive .......

    Job Swaps 24 June 2016

  • Hope note provisions 'provide fix'

    Provisions that exclude hope notes in determining who controls a CMBS transaction correct a potential misalignment of interest, says Moody's. These provisions are appearing in a small but growing share of new CMBS transactions.

    "The new provisions we are seeing in servicing agreements place control of a CMBS transaction in the hands of certificateholders with bond positions that are supported .......

    News Round-up 24 June 2016

  • CRE 'storm' predicted

    US commercial real estate (CRE) prices could drop as much as 5% over the next 12 months, according to a new PIMCO report. The price decline could come from a confluence of factors, including volatility in public markets, tightened regulations, maturing loans and uncertain foreign capital flows - a number of which tie into the performance of CMBS.

    The report notes .......

    News Round-up 23 June 2016

  • Euro secondary settles down

    After a flurry of activity over the past two sessions the European securitisation secondary market has settled down today to await news from the UK EU referendum.

    Following a quiet Monday volumes picked over the next two days sparked by the increase in BWIC activity noted on Tuesday and continuing improvement in wider markets. Flows were relatively healthy yesterday too .......

    SCIWire 23 June 2016

  • Business development head hired

    Solutus has recruited Gareck Wilson from Brookland Partners in a senior role to develop its UK business as part of the firm's expansion plans. As head of business development, he brings diverse high-end experience gained across the real estate finance sector in the UK, Europe and internationally, including debt restructuring, corporate advisory, lending, securitisation and capital markets.

    In his previous .......

    Job Swaps 22 June 2016

  • Cracks emerging in US housing

    A robust housing market has not prevented a number of 'minor' cracks from opening up within US housing, reports Fitch. Rising interest rates, demographics and employment growth point to a positive 2H16 and start to 2017, but challenges for the housing recovery include ongoing labour shortages and the potential for it to become more widespread. 

    Fitch believes that current trends have created a .......

    News Round-up 21 June 2016

  • Multifamily supply ups risk

    While multifamily CMBS ratings should be unaffected, Fitch says that there is rising risk of class A overbuilding in some submarkets. The concentration of high-end construction in 12 metro areas is intensifying and new supply in the student housing sector continues to break records.

    The rating agency notes that the majority of new multifamily construction is concentrated in just 12 .......

    News Round-up 21 June 2016

  • Euro secondary solid

    The European securitisation secondary market remains solid ahead of Thursday's UK EU referendum.

    Thanks to negligible activity due to the Barcelona conference all sectors were insulated against wider market volatility driven by Brexit fears last week. Improving broader sentiment on Friday and yesterday has left ABS/MBS secondary spreads largely unchanged on the previous week albeit on the back of very .......

    SCIWire 21 June 2016

  • Director duo appointed

    New York Mortgage Trust has appointed Kevin Donlon and Michael Clement as directors, with the latter also serving as a member of the board's audit, compensation and nominating and corporate governance committees. Donlon was named president of the REIT last month, following its acquisition of RiverBanc, which he founded in 2010.

    Donlon was previously an md with BlackRock, following its .......

    Job Swaps 17 June 2016

  • Origination probe underway

    CBL & Associates Properties has disclosed that the US SEC is conducting an investigation into four specific non-recourse secured loans that the firm originated in 2011 and 2012. Specifically, the purpose of the review is to ensure that the information provided to lenders regarding lease status reports, revenues and expected revenues did not materially vary from the firm's financial statements.

    Job Swaps 16 June 2016

  • Veteran London trader tapped

    Imperial Capital Group has hired Jonathan Noonan as svp and a senior trader focusing on CMBS, pubs and esoteric ABS. He will join the structured products trading group in the firm's London office. Noonan joins from Bank of America Merrill Lynch, where he most recently was a director and ABS trader.

    .......

    Job Swaps 15 June 2016
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