CMBS

  • 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

  • SFR exposure encouraged

    SFR transactions offer value to STACR, CAS, legacy RMBS and consumer ABS deals, argue Wells Fargo analysts. However, there is only limited upside when compared to single-borrower and large loan CMBS.

    "We believe that triple-A and double-A rated SFR bonds should be viewed as a diversifier within a portfolio containing non-agency CMBS or non-agency RMBS. However, we do not see .......

    News 18 March 2016

  • CMBS 'looking cheap'

    US CMBS spreads remain significantly wide of competing corporate spreads. Despite extra volatility justifying some spread pick-up, single-A CMBS paper is now looking particularly cheap.

    Double-As are 125bp wider than corporate single-A seven- to 10-year spreads, having averaged only 60bp wider over the past few years, note Citi analysts. Single-A spreads pick up more than 200bp over corporates, despite a .......

    News 18 March 2016

  • Euro secondary upswing

    The European securitisation secondary market is seeing an upswing in activity once again.

    Yesterday saw an uptick in activity after a quieter Wednesday, although focus remains very patchy. Peripherals fared well as did UK non-conforming, which began to reverse recent widening amid strong execution across the session's MBS BWICs. However, it was CLOs that once again led the way with .......

    SCIWire 18 March 2016

  • Euro secondary partly pauses

    The bulk of the European securitisation secondary market took a pause yesterday, but CLOs continue to outperform.

    "Yesterday was a bit quieter after the pick-up in activity that followed the ECB last week and into the start of this," says one trader. "BWICs have been the main focus but supply dropped as many people used the excuse of the FOMC .......

    SCIWire 17 March 2016

  • Airbnb threat to CMBS 'minimal'

    Moody's suggests that the supply and demand imbalance from overbuilding in the hotel sector poses a greater threat to US lodging sector CMBS than peer-to-peer home renting platforms such as Airbnb. This is in spite of the latter's continued growth.

    "Airbnb has had a remarkable growth trajectory," says Moody's vp and senior analyst Jay Rosen. "But the company competes for .......

    News Round-up 16 March 2016

  • Resi, CRE auction platforms launched

    Ten-X, formerly known as Auction.com, has launched two new transaction platforms for buying and selling residential and commercial real estate. Ten-X Homes has been created for move-in ready homes, while Ten-X Commercial is the next iteration of the firm's CRE offering.

    Ten-X Homes will offer homes from a wide range of sellers, including banks, investors, institutions, homebuilders and agents. It .......

    News Round-up 16 March 2016

  • Euro secondary mixed

    The European securitisation secondary market is seeing mixed activity and results as the wider credit rally runs out of steam.

    "Overall, the secondary market continues to normalise, but it is highly sector-dependant," says one trader. "Yesterday was active, but that was mainly off the back of BWICs, while customer flows were slower thanks to softening in wider credit."

    Those BWICs yielded mixed .......

    SCIWire 16 March 2016

  • ECB suggests regulatory tweaks

    The ECB has suggested changes to the new securitisation package proposed by the European Commission and adopted by the European Council in December. The package contains the new overarching European securitisation regulation - including STS - as well as the CRR amendment that sets banks' risk weights to securitisation exposures.

    On the topic of supervision, Rabobank credit analysts note it .......

    News Round-up 15 March 2016

  • Euro maturity defaults dip

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe increased slightly to 10.3% from 10% at end-February. Overall, the senior loan delinquency rate decreased to 46.5% from 47.8%, however.

    The delinquency rate for continental European senior loans decreased to 58.8% from 59.8% during the month. But the rate for UK loans increased slightly to .......

    News Round-up 15 March 2016

  • Indian distressed opportunities targeted

    The Canada Pension Plan Investment Board (CPPIB) and Kotak Mahindra Group have signed an agreement to invest in stressed assets in India. The agreement allows for a total investment of up to US$525m, with CPPIB able to invest up to US$450m.

    The flexible investment mandate seeks to take advantage of the growing opportunity arising from the current stress in the Indian banking .......

    News Round-up 15 March 2016

  • Italian SPV rules amended

    The Bank of Italy has updated its supervisory instructions for banks and financial intermediaries concerning loans granted by securitisation vehicles. There are now six key requirements.

    First, borrowers must be selected by a bank or financial intermediary registered under article 106 of the Italian Banking Act. The securities issued are reserved for qualified investors only, and the bank or intermediary must .......

    News Round-up 14 March 2016

  • Delinquencies continue to decline

    US CMBS delinquencies declined by 2bp in February to 2.91% from 2.93% a month earlier, according to Fitch's latest index results for the sector. In total, resolutions of US$980m outpaced new delinquencies of US$751m. Fitch-rated new issuance volume of US$703m (one transaction) in January was far outpaced by US$4.8bn in portfolio run-off, causing a decrease in the index denominator.

    The .......

    News Round-up 14 March 2016

  • Euro secondary sluggish

    Despite last week ending strongly in wider credit the European securitisation secondary market remains sluggish.

    Market sentiment continues to be increasingly positive and there are selective buyers in evidence, but for the most part flows and BWIC supply are patchy and liquidity is thin as investors look likely to stay on the sidelines until the wider credit rally has been .......

    SCIWire 14 March 2016

  • MassMutual affiliates to merge

    Babson Capital Management, its subsidiaries Cornerstone Real Estate Advisers and Wood Creek Capital Management, and Baring Asset Management are set to combine under the Barings brand. The combination creates a global multi-asset investment management firm with over US$260bn of assets under management, offices in 20 countries and over 1,700 professionals.

    The firm will be led by Tom Finke, current chairman .......

    Job Swaps 11 March 2016

  • ECB looks to provide boost

    A new set of measures announced by the ECB could boost ABS supply. The central bank is launching a second TLTRO programme, expanding QE and cutting rates.

    The ECB's deposit rate has been cut by 10bp to -0.4%. Its main refinancing rate has been cut by 5bp to zero.

    The TLTRO 2 programme will - in contrast to the first TLTRO .......

    News 11 March 2016

  • AnaCap makes Dutch purchase

    AnaCap Financial Partners and Arrow Global have acquired a portfolio of Dutch residential and commercial mortgages with a face value of €127m. AnaCap also recently acquired a pair of Italian NPL portfolios (SCI 4 March).

    The Dutch portfolio has been acquired by vehicles owned by AnaCap Credit Opportunities III and Arrow Capital. It is AnaCap's first such transaction in the .......

    News Round-up 10 March 2016

  • Pay-off percentage slips

    Trepp reports that the percentage of US CMBS loans paying off on their balloon date slipped modestly in February. Last month's reading is 65.4%, slightly below the January number of 67.2% and close to the 12-month moving average of 68.4%.

    By loan count as opposed to balance, 73.2% of loans paid off in February. On this basis, the pay-off rate .......

    News Round-up 10 March 2016

  • Euro secondary stable

    The European securitisation secondary market remains stable despite signs of an uptick in volume.

    "Yesterday the market was more or less stable despite an increased number of lists," says one trader. "Notably, the large prime RMBS list traded quite well with most of the 24 bonds involved going through in line with recent levels."

    At the same time, the trader .......

    SCIWire 10 March 2016

  • US CMBS still split

    The divergence in synthetic and cash spreads continues to pre-occupy the US non-agency CMBS secondary market.

    "The big story remains CMBX continuing to tighten significantly while cash keeps going wider," says one trader. "Over the last three weeks triple-A CMBX has come in 35bp and triple-B minus by more than 100bp, whereas triple-A cash spreads have gone out by eight .......

    SCIWire 9 March 2016

  • Euro secondary sidelined

    The improving macro picture has so far failed to encourage the majority of participants back into the European securitisation secondary market.

    "Yesterday was mainly dominated by BWICs, which went through OK but a lot of clients are still on the sidelines," says one trader. "While market tone keeps improving in line with broader markets liquidity hasn't moved in tandem with .......

    SCIWire 9 March 2016
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