CMBS

  • SFR rent trends examined

    Property managers in single-family rental securitisations appear to have been steadily driving rents higher, according to a recent Morningstar Credit Ratings analysis. The study shows that these increases have come from renewals more often than new tenants for vacant properties.

    "It is in the interest of single-family rental securitisations for property managers to keep properties occupied by maintaining high renewal .......

    News Round-up 1 March 2016

  • Euro secondary positive

    The European securitisation secondary market continues to stay positive in line with sentiment in wider markets.

    "Market tone is pretty constructive after a few stable sessions in broader markets," says one trader. "Consequently we're seeing a few people now looking to add."

    However, the trader continues: "Liquidity remains pretty thin and we're not seeing many BWICs. What action there is .......

    SCIWire 1 March 2016

  • Apollo merger questioned

    Apollo Commercial Real Estate Finance (ARI) is set to buy Apollo Residential Mortgage (AMTG) for a combination of cash and stock which values AMTG at US$14.59 per share, representing a premium of around 44%. The transaction values AMTG at approximately US$641m.

    The transaction has been approved by both boards of directors, but law firm Harwood Feffer is investigating potential claims .......

    Job Swaps 29 February 2016

  • Five-year CMBS 2.0 loans eyed

    Fitch says it is closely monitoring five-year US CMBS loans originated in 2011 that are slated to mature this year. The agency suggests that underperforming assets will have a difficult time refinancing in the face of interest rate and bond spread uncertainty, as well as new regulatory requirements that continue to pressure liquidity.

    Approximately 11% of Fitch's universe of loans .......

    News Round-up 29 February 2016

  • Euro secondary flurry

    The European securitisation secondary market saw a flurry of activity on Friday.

    After declining volumes throughout the week the final session saw an uptick thanks to impending month-end and anticipation of a quiet week ahead. The sectors that saw most activity were the usual suspects - prime assets and higher quality peripherals - with trades going through both on- and .......

    SCIWire 29 February 2016

  • Euro secondary slips

    Activity and pricing levels have slipped further in the European securitisation secondary market.

    Yesterday saw further weakness in Portuguese paper as the aftermath of the BCP tender pushed bonds out further during the session after they had opened wider on the previous day's close. Also in peripherals, yesterday's Spanish seniors BWIC only partially traded.

    Meanwhile in core assets spreads are .......

    SCIWire 26 February 2016

  • Brexit implications weighed

    The UK will hold a referendum on 23 June to decide whether to stay within the EU. Uncertainty about a potential 'Brexit' is expected to cause technical weakness in UK securitisation markets in the meantime.

    JPMorgan European ABS analysts expect investors to demand increased risk premia to hold UK risk between now and June. Benchmark anchor markets are already pricing .......

    News 25 February 2016

  • Loan mods hit seven-year low

    The overall share of specially serviced US conduit CMBS loans decreased by 3bp to 6.77% in Q4 from 6.80% in Q3, according to Moody's latest CMBS and CRE CDO surveillance review. The share of specially serviced loans remains 595bp below the April 2011 peak of 12.72%, while only five loans totalling US$342.7m were modified last quarter, the fewest since 1Q09.

    News Round-up 25 February 2016

  • Change in use eyed

    Kroll Bond Rating Agency says it is monitoring the third largest loan in the US$830.7m JPMBB 2015-C27 CMBS, due to a potential change in use of the building. The loan - The Branson at Fifth - currently represents 8.8% of the aggregate transaction balance.

    Substantive renovations are reportedly slated for the property that are suggestive of a change in use .......

    News Round-up 25 February 2016

  • Euro ABS/MBS softens

    Weaker wider markets have softened the tone across the European ABS/MBS secondary market.

    Broader market volatility continues to keep liquidity thin and investors for the most part are only appearing as sellers. Consequently, secondary tone weakened again yesterday. Nevertheless, light flows and selective buying from the Street, albeit in very low volume, was enough to keep most secondary spreads unchanged.

    SCIWire 25 February 2016

  • Drifting out

    High-beta spread dislocation continues

    As markets sell off and become increasingly volatile, European high-beta securitised paper has widened considerably. This has been driven by several factors - not least regulation - and has concerning implications for liquidity and the future health of the market.

    Bank of America Merrill Lynch European ABS analysts note that the €888m Driver Espana Three auto ABS, which priced earlier .......

    News Analysis 24 February 2016

  • Maturity wave pay-offs projected

    Morningstar Credit Ratings projects that paying off US CMBS loans on time will become progressively more difficult through 2017, as many of the maturing loans were aggressively underwritten near the peak of the market and remain overleveraged. Based on LTV ratios, debt yields and loan proceeds benchmarks, the agency predicts a decline in the 2016 maturity pay-off rate to 65%-70%, .......

    News Round-up 24 February 2016

  • Euro secondary mixed

    The European securitisation secondary market continues to experience mixed fortunes.

    "Liquidity remains very thin overall," says one trader. "However, there is still demand in the prime area, particularly in Dutch paper and yesterday we also saw some for Italian bonds."

    At the same time, the trader adds: "Sterling sellers have started coming in. There wasn't a big incidence in UK .......

    SCIWire 24 February 2016

  • Delinquencies for oil-boom loans

    Morgan Stanley CMBS strategists have identified eight US CMBS 2.0 loans totalling US$55m - all of which are secured by properties located in oil-boom regions - that turned delinquent this month. A further oil-exposed loan realised an appraisal reduction, according to February remittance reports, suggesting a potential loss.

    The largest of the newly delinquent loans is the US$17.9m Eagle Ford .......

    News Round-up 23 February 2016

  • Euro secondary starts slowly

    It was a slow start to the week for the European securitisation secondary market, but today looks likely to see something of a pick-up.

    "Yesterday was for the most part pretty slow," says one trader. "Primarily there was a just a lot of chatter around Brexit and its broader implications including the potential for people to step away from sterling .......

    SCIWire 23 February 2016

  • Euro secondary solid

    The European securitisation secondary market remained solid on Friday despite broader market weakness.

    Volumes remained generally low as the week closed out, but tone remained firm and most spreads ended the session unchanged. Off-BWIC activity once again revolved around prime assets and eligible peripherals. Meanwhile, BWICs generated a flurry of activity in the afternoon and the bulk of line items .......

    SCIWire 22 February 2016

  • CMBS oil exposure analysed

    Kroll Bond Rating Agency has designated US$684m of CMBS 2.0 oil exposed loans in both KBRA-rated (21) and non-rated transactions (seven) as KBRA loans of concern (K-LOCs). Among the agency's rated transactions, North Dakota and Texas include collateral with oil-exposed K-LOCs. Oklahoma and Colorado have also been identified with oil-exposed K-LOCs in non-KBRA rated transactions.

    K-LOCs are loans that are .......

    News Round-up 19 February 2016

  • Euro secondary fades

    Levels and activity are fading in the European securitisation secondary market as the broader market rally runs out of steam.

    Activity remained patchy across the board yesterday, with prime assets once again leading the way, albeit in lower volumes than in previous sessions. Meanwhile, the appetite for Portuguese paper of recent days has faded somewhat and kept spreads slightly off .......

    SCIWire 19 February 2016

  • SFR operating expenses up

    Net operating expenses for most single-family rental (SFR) securitisations issued in 2013 and 2014 are slightly above underwritten assumptions, which Moody's describes as slightly credit negative for the affected transactions. Exceptions to this trend are the Invitation Homes (IH) and Silver Bay deals.

    The first six months of operating cashflows for 2013 and 2014 SFR transactions suggest that non-contractual costs .......

    News Round-up 18 February 2016

  • Euro ABS/MBS split

    There continues to be a strong split in where activity is taking place in the European ABS/MBS secondary market.

    "Tone over the past few days has been much more positive in line with the macro trend," says one trader. "However, there is still a marked divergence over where activity is centred."

    The trader continues: "Most focus continues to surround prime .......

    SCIWire 18 February 2016

  • Euro secondary improves

    Tone in many European securitisation secondary market sectors continues to improve in line with broader markets.

    "Yesterday, tone was bit better overall in our space as credit in general continued to improve," says one trader. "But the biggest story was Portugal."

    The trader continues: "The tender announcement from BCP for MAGEL 2  and 3 combined with rising sovereign bonds and .......

    SCIWire 17 February 2016
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