CMBS

  • 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

  • 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
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