CMBS

  • 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

  • Barbelling risk proliferating

    Fitch warns that credit barbelling is becoming more common in US CMBS, which may place transactions at greater risk of losses over time. Such wide dispersion of credit risk within transactions is becoming more obvious as deal sizes shrink.

    "Barbelling began to surface within Fitch's loan metrics last year and it is showing up more frequently in 2016," says Fitch .......

    News Round-up 14 June 2016

  • Euro CMBS defaults drop

    The 12-month rolling loan maturity default rate for European CMBS rated by S&P fell from 8.1% to 7% at the end of May. The senior loan delinquency rate increased from 43.7% to 45%.

    The senior loan delinquency rate rise was driven by increases in both continental and UK loans. The rise for continental loans was from 56.9% to 58.7% and .......

    News Round-up 14 June 2016

  • Attack force

    Contrasting legal approaches add to uncertainty

    The High Court in London decided five cases brought by class X noteholders in 2006 and 2007 vintage European CMBS in April (SCI 13 May). The overall outcome was the same for both judgments - the claimants failed - but the contrasting approaches taken by the judges leave structured finance agreements open to attack using general legal principles, given the .......

    News Analysis 14 June 2016

  • CRE lending teams bolstered

    Greystone has boosted its origination team with the additions of Don Farmer and Lou Tiberio. They will be located in Dallas and Philadelphia respectively, and have joined as part of the company's push to boost its regional mortgage lending production.

    Prior to joining Greystone, Farmer was most recently md of structured finance at Transwestern. He also served roles as south central .......

    Job Swaps 13 June 2016

  • Lender taps CRE arranger

    Walker & Dunlop has boosted its capital markets team with the hire of Stuart Wernick as svp and md. He will be responsible for building the firm's regional production platform in its Dallas office by arranging CRE loans to banks, life insurance companies, CMBS conduits and others.

    Prior to joining, Wernick served as senior md at Berkadia Commercial Mortgage, where he led .......

    Job Swaps 13 June 2016

  • Special servicing head appointed

    Torchlight Investors has reshuffled its special servicing group by appointing Abbey Kosakowski to lead its operations. Kosakowski is already svp for the firm and has previously held senior roles at JPMorgan and Lehman Brothers.

    She takes over the role after Torchlight md and investment committee member, Steven Schwartz, exited it. Schwartz will continue to lead Torchlight's acquisitions group and will .......

    Job Swaps 13 June 2016

  • Credit enhancement model offered

    S&P has launched its Commercial Mortgage Evaluator (CME) tool, a proprietary model that can be used to aid credit risk analysis associated with US and Canadian CMBS collateral. The CME leverages S&P's CMBS rating methodology and utilises individual loan-level credit metrics to derive loan-level credit enhancement levels. These in turn are aggregated to determine pool-level credit enhancement levels, which reflect .......

    News Round-up 13 June 2016

  • Delinquencies inch up

    US CMBS delinquencies increased by 6bp in May to 2.98% from 2.92% a month earlier, according to Fitch. The dollar balance of late-pays increased by US$173m to US$11.22bn, from US$11.05bn in April, driven by the addition of three loans sized at over US$50m into the index.

    In total, new delinquencies of US$756m exceeded resolutions of US$543m. Fitch-rated new issuance volume .......

    News Round-up 13 June 2016

  • CMBS pay-offs dip

    The percentage of US CMBS loans that paid off on their balloon date slid modestly in May to 68%, almost five points lower than the April level, according to Trepp. The May tally is slightly below the 12-month moving average of 68.5%.

    By loan count as opposed to balance, 68.3 % of loans paid off last month. On this basis, .......

    News Round-up 13 June 2016

  • Credit metrics eyed

    S&P reports a significant change in conduit/fusion CMBS credit metrics for 2016 transactions compared to the 2013-2014 vintages. The agency notes that collateral pools have continued to deteriorate, with higher loan-to-value (LTV) ratios, lower debt yields, greater hotel concentrations and more interest-only (IO) loans.

    The weighted average S&P LTV has increased to 92.9% from 85.5% in 2013 and the weighted .......

    News Round-up 13 June 2016

  • Gap exposure weighed up

    Morningstar Credit Ratings has identified 231 CMBS loans totalling US$13.89bn with exposure to struggling US retailer Gap. With more than half the loans backed by collateral where leases are set to expire in the next two years, closing stores could impact CMBS deals sooner rather than later.

    Gap - which also owns the Old Navy, Banana Republic, Athleta and Intermix brands - reported its comparable-store sales .......

    News 10 June 2016

  • REMIC guidance provides clarity

    REMICs have long operated with only limited tax guidance, but two significant pieces of guidance have come out this month. The first is a Second Circuit Court of Appeals ruling concerning certain RMBS and the second is an IRS private letter ruling.

    The application of the REMIC rules to mortgages that have a high probability of default or credit-based restructuring .......

    News 9 June 2016

  • Euro secondary stable

    The European securitisation secondary market continues to show stability.

    Secondary spreads across the board are flat to slightly tighter this week as the vast majority of securitisation sectors remain insulated from headline volatility surrounding Brexit and US rates. CLOs continue to lead the way in terms of demand across the capital structure, while ABS/MBS is seeing more two-way flows.

    However, overall .......

    SCIWire 9 June 2016

  • Euro secondary liquidity 'healthy'

    Around 80% of European ABS BWICs have successfully traded over the last year, a sign that liquidity in the market remains healthy, according to TwentyFour Asset Management. The asset manager notes that €9.9bn worth of bonds has hit the BWIC market since June 2015, with an additional €5bn when European CLO bonds are included.

    TwentyFour says that misconceptions about the liquidity of .......

    News 8 June 2016

  • Vacancy decline supporting SFR deals

    Nationwide rental vacancy in the US is presently 7%, down from 11% in 2009, according to the US Census Bureau. Moody's believes that this drop in vacancy bodes well for the single-family rental securitisations it rates, especially regarding anticipated future enhanced rental revenue, as Generation Y renters are a large component of SFR renters. It also portends higher liquidation proceeds .......

    News Round-up 8 June 2016

  • Brazilian trustees feeling squeeze

    Smaller trustees will have to exit the Brazilian securitisation market or merge with larger competitors, says Fitch. This is because of markedly decreased issuance, high operating costs and low profitability.

    Smaller, lower-capitalised companies which rely on non-recurring structuring fees to cover ongoing operating expenses are expected to feel the most pressure. The rating agency notes that companies which only act .......

    News Round-up 8 June 2016

  • Liquidation volume climbs

    US CMBS liquidation volume climbed to US$854.5m in May, up from US$436m in March and US$501.5m in April, according to Trepp. Last month 72 loans that averaged US$11.9m in balance were paid off.

    Including two B-notes totalling US$29.1m, eight loans comprising US$87.1m paid off with over 100% in losses. The top five loans disposed of with the highest losses last .......

    News Round-up 8 June 2016

  • A/B loan transfers eyed

    Fitch reports an up-tick in US CMBS loss severities as more modified A/B loans transfer back to special servicing. The agency adds that many A/B loan modifications have still not stabilised and are unlikely to be able to refinance in the current market.

    Loss severities are likely to continue increasing as modified A/B loans transfer back to special servicing, according .......

    News Round-up 8 June 2016

  • REIT pro snapped up

    Hunton & Williams has hired Robert Smith as a partner to its real estate capital markets practice. His practice focuses on REITs, with a focus on the mortgage REIT space, including publicly traded mortgage REITs on securities offerings and corporate and securities law reporting matters.

    The law firm adds that Smith's experience will include significant contributions to securitisation. Prior to .......

    Job Swaps 7 June 2016

  • CMBS loss severities recover

    US CMBS loss severities dropped in 1Q16 to 49.3% across 143 loans after posting high weighted averages to close out last year, according to Moody's. The figures represent a decrease from the 58.2% weighted average loss severity posted across 240 liquidated loans in 4Q16, but are still higher than the 42.8% average since January 2000.

    "Loan liquidations from the troubled 2006 to .......

    News Round-up 6 June 2016
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