CMBS

  • Euro secondary starts slowly

    The quarter has begun slowly in the European securitisation secondary market.

    "It's been a slow start to the week so far," says one trader. "Tone has remained positive despite the weaker macro backdrop, but clients remain on the sidelines with many still assessing the implications of the Granite Towd deal and the potential lack of future Warwick supply."

    The trader .......

    SCIWire 6 April 2016

  • STS alarm bells ring

    A list of potential pitfalls in the European Commission's STS framework has been published in a letter by 32 signatories, including some of the EU's largest banks. The signatories argue that the STS framework would not, in its current form, provide the solution for the securitisation market that it is intended to.

    The joint-letter seeks to address 10 key points .......

    News 5 April 2016

  • CMBS default drop to stop

    US CMBS loan defaults fell again in 2015 but the trend is likely to stop this year, according to Fitch. Term defaults are expected to tick up slightly in 2016 after dropping for a fifth straight year in the sector.

    Fitch says the end of the streak will come as the current credit cycle matures. Defaults peaked at 4.1% in 2010, which .......

    News Round-up 5 April 2016

  • Delinquencies inch up

    The US CMBS delinquency rate stood at 4.22% in March, an increase of 7bp from February, according to Trepp. The rate is 136bp lower than the year-ago level.

    CMBS loans that were previously delinquent but paid off with a loss or at par totalled over US$700m last month. Removing these previously distressed assets from the numerator of the delinquency calculation .......

    News Round-up 4 April 2016

  • CMBS lender beefs up

    Mitch Resnick is set to join Walker & Dunlop Commercial Property Funding, Walker & Dunlop's CMBS lending platform, as md in late April. He will oversee WDCPF capital markets executions, with responsibility for pricing, hedging, securitisations and investor relations.

    Resnick will be based in the firm's Bethesda, Maryland headquarters. He has extensive commercial real estate financing experience, having previously served .......

    Job Swaps 1 April 2016

  • Liquidations down, severities up

    Trepp reports that 36 US CMBS loans totalling US$435.9m were liquidated in March, down from US$567m in February. Rising from US$13.2m in February, average loan size came in at US$12.1m last month.

    The three largest loans that paid off in March all experienced 100% losses, two of which were backed by properties in the St Louis MSA. Comprising 35% of .......

    News Round-up 1 April 2016

  • Rating agency adds sales chief

    Scope Ratings has appointed Sven Janssen to the newly-created role of chief sales and marketing officer, effective from today (1 April). He was previously head of debt capital markets at Oddo Seydler Bank and has also worked at Macquarie, Bank Metzler, Bank Sal Oppenheim and Hawkpoint Partners.

    .......

    Job Swaps 1 April 2016

  • CMBS 2.0 delinquencies spike

    US$152m of US CMBS 2.0 collateral across 17 loans became newly delinquent in March, including six loans secured by properties located in oil boom regions, marking the largest one-month increase in delinquencies since November 2012. A total of 59 loans with a balance of US$586m were delinquent at the end of last month, resulting in a delinquency rate of 25bp, .......

    News 1 April 2016

  • Euro secondary stifled

    Sentiment continues to be strong across the European securitisation market but technicals are stifling activity.

    Buying interest remained apparent throughout ABS/MBS yesterday with the exception of UK RMBS, which is seeing some investors hold back over Brexit uncertainty. However, flows overall were still light and there were significant DNTs on BWIC as the gap in buyer and seller expectations for .......

    SCIWire 31 March 2016

  • Auction success for CGCMT 2007-C6

    Six REO CMBS assets with a combined unpaid balance of US$55.4m, accounting for 2% of the CGCMT 2007-C6 pool, were put up for bid in online auctions last week. Kroll Bond Rating Agency research shows that all of the properties were in escrow as of 24 March, indicating that they were sold.

    The agency anticipates that the assets will be .......

    News Round-up 30 March 2016

  • REO holds foretell CMBS losses

    Longer REO asset hold times could signal higher US CMBS losses, says Fitch. The average length of time REO assets spent in special servicing increased 10% last year, while REO ageing increased 16%.

    A review of CMBS special servicers' REO asset inventory reveals the average time REO assets spent in special servicing increased to 42 months as of year-end 2015, .......

    News Round-up 30 March 2016

  • Euro secondary returns

    After a quiet few sessions surrounding the long weekend the European securitisation secondary market looks to be returning to life.

    Yesterday once again saw light activity but tone remains overwhelming positive across most European ABS/MBS sectors and spreads remain well supported as more and more participants return post-Easter. Meanwhile, CLOs continued to lead the way in terms of both activity .......

    SCIWire 30 March 2016

  • Trust issues

    Redwood exit signals CMBS origination pull-back

    The US CMBS market has encountered a rocky start to 2016, with new issue pricing spreads performing unpredictably. A number of other concerns have cast doubt over profitability on the origination side, prompting suggestions that lenders may slowly thin out.

    Redwood Trust is one high-profile casualty of CMBS market volatility, having recently announced its plan to discontinue loan originations for .......

    News Analysis 30 March 2016

  • Japanese rating upgrades increase

    The upgrade rate for Japanese structured finance securities rose in 2015, notes S&P. S&P Japan raised 8.3% of its outstanding ratings on Japanese structured finance securities last year, up from 4.5% in 2014.

    The 2015 upgrade rate exceeded the downgrade rate of 4.5% and resulted in an upgrade-to-downgrade ratio of 186%, which also surpassed the 2014 ratio of 143%. Separately .......

    News Round-up 29 March 2016

  • Chinese ABS expansion 'to continue'

    China's securitisation market will continue to grow this year, albeit at a slower pace than in 2015, says Fitch. Issuance last year doubled to reach a record CNY600bn from more than 300 transactions.

    Market expansion will be driven by regulatory changes which have made it simpler and more efficient for financial institutions to issue structured finance securities. The rating agency .......

    News Round-up 29 March 2016

  • RPL, NPL approach updated

    Moody's has made updates to its rating methodology for securitisations backed by NPLs and reperforming loans (RPLs). The changes incorporate proposals that the agency made late last year in a request for comment on the rating approach (SCI 25 November 2015).

    The main changes involve a consolidation of the approaches Moody's has used to rate RMBS of NPLs and RPLs into a .......

    News Round-up 24 March 2016

  • Energy turmoil hits Canadian CMBS

    Of the 331 loans in Fitch-rated Canadian CMBS, six have transferred to special servicing due to oil industry exposure, as of the March 2016 remittance. This represents 2.4% of the total C$2.7bn of Canadian transactions across nine conduits and one large loan transaction.

    The affected loans are: Lakewood Apartments (representing 8.3% of IMSCI 2012-2), Lunar & Whimbrel Apartments (3.2% of .......

    News Round-up 24 March 2016

  • CMBS TRS index introduced

    Markit and Trepp have launched a new total return swap index referencing US last cashflow triple-A rated CMBS bonds issued in the previous 12 months. Dubbed the Markit iBoxx Trepp CMBS TRS Index, the underlying index for the contract is the Markit iBoxx Trepp CMBS Original AAA Rolling Index.

    Markit will be the index administrator and calculation agent for the .......

    News 24 March 2016

  • Euro secondary steady

    Activity in the European securitisation secondary market is steady rather than spectacular at present.

    Liquidity grows ever thinner as the long holiday weekend approaches and light, patchy flows continue to characterise the market. Yesterday's BWICs traded reasonably well for the most part, though the ABS/MBS lists yielded little colour. For now at least spreads across the board remain stable despite .......

    SCIWire 23 March 2016

  • CMBS portfolio offloaded

    American Capital has sold a US$64.9m portfolio of CMBS bonds to an undisclosed, unaffiliated group of third parties. The sale includes related fee agreements and select collateral administration rights. The firm says that the assets within the portfolio have a fair value of approximately US$40.4m as of end-2015.

    .......

    News Round-up 22 March 2016

  • Strategic transaction on hold?

    Chinese investors have dominated the US hotel investment landscape recently, aggressively bidding on mostly upper-tier assets in core markets. Historically, this type of activity - rich property valuations paid by less-established (often international) market participants - has corresponded with US commercial real estate cycle peaks, according to Fitch.

    Chinese insurer Anbang Insurance Group last week reportedly offered to acquire the .......

    News Round-up 21 March 2016
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