CMBS

  • 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

  • CMBS delinquencies inch up again

    The US CMBS delinquency rate inched up for the third straight month at the end of May, says Trepp. The rate for CRE loans in CMBS is now at 4.35%, an increase of 12bp from April.

    The rate has crept up after two large decreases to start the year in January and February. However, on a relative basis, the rate is .......

    News Round-up 3 June 2016

  • Goldman CRE head steps down

    Ted Borter has taken over as sole head of Goldman Sachs' US CRE finance group after Jonathan Strain recently left his position as co-head. Strain departed from the bank to reportedly launch a CMBS B-piece fund. Prior to Goldman, he was head of CMBS capital markets at JPMorgan.

    .......

    Job Swaps 2 June 2016

  • Euro secondary stays positive

    The European securitisation secondary market is retaining its positive tone and momentum.

    Despite the UK and US public holidays and month-end, activity has improved on the previous week throughout this. The last few days have seen trading across the board and spreads in the vast majority of sectors continue to grind tighter.

    In ABS/MBS prime assets were the main focus yesterday .......

    SCIWire 2 June 2016

  • US CMBS secondary demand strong

    The slow pace of primary market issuance is driving US non-agency CMBS trends.

    "We see little bursts of activity and then everything slows back down. Over the last one or two weeks we have really seen the quiet primary market driving the secondary market," says one trader.

    He adds: "Curiously, there was a decent amount of BWIC supply last week. .......

    SCIWire 1 June 2016

  • Building boom threatens hotel CMBS

    Burgeoning hotel room supply could increase risk for the US$3.68bn of fixed-rate loans backed by Manhattan hotels and securitised in CMBS monitored by Morningstar Credit Ratings, says the agency. Delinquent and specially serviced loans account for just 2.8% of the Manhattan loans, but a further 14 loans - with a combined balance of US$730.9m - have DSCRs below 1.2x.

    While .......

    News 1 June 2016

  • CMBS metrics diverging

    A number of metrics appear to be diverging within recent US CMBS 2.0 deals rated by Fitch. A recent comparative analysis of 2014 and 2015 deals undertaken by the agency reveals that originator leverage metrics improved, while the agency's own leverage metrics deteriorated.

    In addition, cashflow haircuts and debt yield also worsened within Fitch's metric, an indicator of aggressive originator underwriting. "The rise .......

    News Round-up 1 June 2016

  • Gateway mod pulled

    The February modification of the US$94.3m Gateway Salt Lake loan, securitised in JPMCC 2010-C1, has been rescinded. Trepp suggests that while the pulling of the modification may not be a first for the CMBS market, it is certainly the largest.

    The 623,205 square-foot mall backing the loan was sold earlier this year to a group that included Vestar and Oaktree .......

    News 1 June 2016

  • Real estate platform strengthened

    C-III Capital Partners is set to acquire Resource America, following a comprehensive review of strategic and financial alternatives that the latter company announced in January. Under the terms of the agreement, Resource America stockholders will receive US$9.78 per share in cash, or a total of approximately US$207m. The price per share represents a premium of over 128% from Resource America's .......

    Job Swaps 31 May 2016

  • Ex-SEC counsel joins law firm

    BakerHostetler has added Walter Van Dorn to its New York office as a partner. He was most recently at Dentons and has also worked at Thacher Proffitt & Wood, Clifford Chance and the US SEC. Van Dorn has worked in London, Hong Kong and Washington and focuses his practice on corporate securities law, including ABS.

    .......

    Job Swaps 31 May 2016

  • For-profit college exposure gauged

    Morningstar Credit Ratings believes that government scrutiny and poor public perception of the US for-profit education industry could intensify default risks on up to US$1.88bn in CMBS. The industry has been hit by a series of investigations and settlements that resulted in the closure of Corinthian Colleges and a 28% decline in enrolments between September 2011 and September 2015. In .......

    News Round-up 27 May 2016

  • NOI trends analysed

    Moody's has published a mid-year update on net operating income (NOI) trends for the main types of collateral backing US CMBS conduit loans. The update covers the period between 2004 and 2015, and tracks year-over-year changes in same-store property financials as reported by borrowers and processed by master servicers.

    The report is based on borrower financials for 2015 that were .......

    News Round-up 27 May 2016

  • Euro secondary strengthens

    The European securitisation secondary market is continuing to strengthen.

    "Market tone continues to be strong in our market thanks in part to the current positive wider credit environment," says one trader. "However, it remains difficult to source paper as everybody is holding on to what they have."

    The trader continues: "Flows are still thin, while primary and secondary supply is falling .......

    SCIWire 26 May 2016

  • BDC buys out rival

    Ares Capital is set to acquire American Capital in a deal that will form a combined company worth more than US$13bn of investments. The board of directors for both companies unanimously approved the merger, with American Capital shareholders set to receive US$3.43bn in cash and stock consideration as a result.

    The announcement coincides with a separate decision for American Capital .......

    Job Swaps 25 May 2016

  • Wildfire exposure gauged

    DBRS has identified 12 loans across nine Canadian CMBS, with a current outstanding balance of C$145.8m, secured by properties located in Fort McMurray that are exposed to wildfires. The assets consist of five multifamily complexes, two hotels, two industrial facilities and an office property.

    Although 10 of the 12 loans have recourse, six of the loans that are sponsored by .......

    News Round-up 25 May 2016

  • Retention relief?

    CMBS preservation bill hangs on Congress

    The US CMBS market is seeking some breathing space as issuers ramp up their compliance measures ahead of the implementation of risk retention rules at year-end. Participants are keenly watching the progress through Congress of a bill that proposes some much-needed relief for certain areas of the commercial real estate market.

    Risk retention measures have been at the forefront for .......

    News Analysis 24 May 2016

  • Euro secondary patchy

    Activity in the European securitisation secondary market remains very patchy.

    Despite a positive end to last week that saw spreads tick in and a continuing strong tone in to this, ABS/MBS continues to see highly selective trading. While there is little BWIC activity, what flows there are have so far this week been focused on prime assets.

    Similarly, tone remain .......

    SCIWire 24 May 2016

  • CMBS loan quality turns corner

    Moody's has launched a new quarterly overview of the US CRE and CMBS market. The inaugural report finds that the quality of new CMBS loans improved in 1Q16 as property prices levelled off.

    "Triple-A bond spreads were volatile during 1Q16, contributing to slowing conduit loan origination," says Moody's director of CRE research, Tad Philipp. "But over the last few transactions, .......

    News Round-up 23 May 2016

  • CRE pro launches firm

    Former Avison Young principal David Eyzenberg has launched his own firm, Eyzenberg & Company, of which he is managing partner. The firm is a New York-based real estate investment bank, providing bespoke financial services to consumers and providers of CRE capital. Three associates have joined the firm to assist with transaction execution.

    Additionally, Eyzenberg remains a partner at Anika Equities .......

    Job Swaps 23 May 2016

  • Risk retention class debuts

    Colony Starwood Homes is in the market with its first single-family rental securitisation - the US$535.9m Colony Starwood Homes 2016-1 - following the merger of Colony American Homes and Starwood Waypoint Residential Trust in January. The transaction is also notable for including a risk retention class, representing a subordinate 5% horizontal strip designed to comply with risk retention rules.

    Provisionally .......

    News 20 May 2016

  • Euro secondary strong but slow

    Sentiment remains strong across the bulk of the European securitisation secondary market but away from CLOs activity remains very slow.

    ABS/MBS secondary continues to be hampered by lack of supply as BWICs have remained thin on the ground this week. Meanwhile, flows are highly selective and almost exclusively dealer-driven.

    There is more activity being seen in the CLO space, however. .......

    SCIWire 19 May 2016
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