CMBS

  • CMBS delinquency drop continues

    Trepp's US CMBS delinquency rate in October fell by 5bp, marking the ninth month of improvement in the past year. The next big move for the delinquency rate could come as early as November, with a forthcoming resolution expected on the US$3bn Stuyvesant Town/Peter Cooper Village loan (see SCI's CMBS loan events database).

    The loan defaulted in 2009 .......

    News Round-up 4 November 2015

  • Loan misuse confirmed, refinanced

    Further details have emerged regarding a mortgage loan securitised in Velocity Commercial Capital 2015-1, which was thought to have been misused by the borrower (SCI 22 September). That loan has now been repaid in full.

    The borrower was contacted on Velocity's behalf and confirmed that it was indeed occupying the property as a primary residence, in violation of the loan .......

    News Round-up 4 November 2015

  • Rating agency targets expansion

    A partnership has been formed between Kroll Bond Rating Agency, the Kroll family and Wharf Street, effective immediately. It will provide permanent capital for the rating agency to grow.

    Kroll Bond Rating Agency says it will use the additional capital to develop other sectors beyond the structured finance, public finance and financial institution spaces. It will particularly look to accelerate .......

    Job Swaps 4 November 2015

  • Euro secondary strengthens

    The positive tone in the European securitisation secondary market continues to build.

    "Overall, we're strengthening, but still lagging the positive tone in broader markets," says one trader. "We're seeing something of a pick-up and flows are better especially in some of the recently quiet sectors."

    The trader continues: "We're not seeing much in prime, but Portuguese RMBS and UK non-conforming .......

    SCIWire 4 November 2015

  • Regulation threatens market viability

    Banks' market making ability in securitised products is set to be severely affected by the Basel Committee's proposed Fundamental Review of the Trading Book (FRTB). JPMorgan ABS analysts have joined a growing chorus (SCI 15 June) in warning that FRTB would make secondary trading in securitised products unprofitable.

    The final FRTB ruling is expected to be published next month, before .......

    News 3 November 2015

  • Automated lender launches

    Aries Capital has launched an automated mortgage banking platform that specialises in non-recourse, permanent and bridge loans from US$3m to US$75m for hotel, multifamily, self-storage, retail and other commercial properties in the US. Headquartered in Chicago, LendingCap Commercial is headed by Neil Freeman, Aries chairman and ceo, and Rushi Shah, Aries svp and president of LendingCap.

    LendingCap's originators are expected .......

    Job Swaps 3 November 2015

  • Euro secondary refocuses

    After a couple of quiet sessions the European securitisation secondary market looks set to refocus in the days ahead.

    "After a very busy week last week on our side at least it was pretty quiet yesterday and one or two data points were enough to distract the market," says one trader. "However, there are a couple of big BWICs today, .......

    SCIWire 3 November 2015

  • CMBS criteria updated

    Moody's has updated its methodology for rating multi-borrower large loan and single-asset/single-borrower (LL/SASB) CMBS. The changes incorporate previous proposals from two request for comments that the agency sent out in August and September (SCI passim).

    The main changes to the methodology include updated LTV targets for US, Canadian and Japanese LL/SASB CMBS. The agency has also refined adjustments that it makes to .......

    News Round-up 2 November 2015

  • CMBS defaults dip

    Fitch's US CMBS cumulative loan default rate for fixed-rate CMBS fell slightly to 13.2%, as of 3Q15, from 13.3% at end-2Q15. The agency suggests this is due to fewer new defaults and strong new issuance levels.

    In 3Q15, 38 loans totalling US$779.1m were newly defaulted during their term. This represents a decrease from 3Q14, when 77 loans totalling US$1.11bn defaulted. .......

    News Round-up 2 November 2015

  • Euro secondary rolls on

    The bulk of the European securitisation secondary market took month end in its stride and continues to roll on at a solid if unremarkable pace.

    Friday was quieter than earlier in the week, but saw relatively healthy flows for month-end. Overall, tone remained positive and spreads were little moved.

    The main area of buying focus was once again UK prime .......

    SCIWire 2 November 2015

  • Drug store deal CMBS impact weighed

    Walgreens Boots Alliance is set to acquire Rite Aid for US$17.2bn, in a move which will impact almost US$10bn of CMBS conduit loans. There is slightly more 'high risk' exposure in legacy CMBS than in 2.0 deals.

    Morgan Stanley analysts note that there are an estimated 12,674 Walgreens and Rite Aid stores across the US, with 3,248 of these located .......

    News 30 October 2015

  • Law firm expands in California

    Baker Botts is opening an office in San Francisco. It will be the firm's second office in California and it is expected to work closely with the team already established in Palo Alto.

    Patricia Stanton, chair of the firm's real estate practice, will move from its Dallas office to take the role of partner-in-charge in San Francisco. The firm expects to grow .......

    Job Swaps 30 October 2015

  • APAC ratings 'stable'

    Fitch affirmed a total of 133 APAC structured finance tranches in 3Q15. No ratings were upgraded, downgraded or withdrawn during the quarter.

    Of the affirmed tranches, 53 were prime and non-conforming RMBS bonds backed by Australian or New Zealand properties, while 47 were CMBS backed by Japanese properties and 14 were ABS backed by loans in New Zealand. The remaining affirmations include: .......

    News Round-up 30 October 2015

  • Euro secondary mixed

    The European securitisation secondary market continues to experience mixed fortunes, though tone continues to improve overall and some sectors are getting ever-more active.

    UK non-conforming continues to lead the way with healthy activity on- and off-BWIC yesterday. Flows are strong in both directions, so spreads for now remain broadly unchanged.

    The pick-up in peripherals is continuing with trades going through .......

    SCIWire 30 October 2015

  • RFC on triple-net lease approach

    S&P is requesting comments on its proposed methodology for rating North American single-tenant real estate triple-net lease-backed securitisations. The proposed criteria would apply to all new and outstanding triple-net lease securitisations backed by commercial properties in North America.

    S&P explains that a triple-net lease is a lease agreement between a lessor and a lessee where the lessee is generally responsible .......

    News Round-up 29 October 2015

  • CMBS loan repeat use to grow

    Over US$17bn of loans from prior securitisations has returned to US CMBS in the form of acquisition and refinance loans so far in 2015. Repeat borrowers are running at around 36% of total 2015 conduit issuance, although the figure is expected to grow over the next two years.

    Deutsche Bank analysts cross-checked prior securitisation lists against various market sources to ensure .......

    News 29 October 2015

  • Euro secondary stays slow

    The European securitisation secondary market saw another slow session yesterday, but tone continues to slowly improve.

    Activity remains patchy across secondary markets but most sectors are now seeing a buying bias. Consequently, spreads are broadly flat to slightly tighter over the past day or so.

    Primary activity is continuing to distract participants, but secondary supply continues to tick over. For .......

    SCIWire 29 October 2015

  • Euro secondary pauses

    The nascent revival in the European securitisation secondary market has come to a halt once again.

    "The last few days have been a bit better in line with global markets and the impact of Draghi's comments was finally trickling through to ABS," says one trader. "However, yesterday broader markets took a pause and that immediately fed through to us and .......

    SCIWire 28 October 2015

  • Concerns rise for recent CMBS

    October remittance indicates that US$2.3bn of US CMBS 2.0 loans were newly watchlisted, including a concerning number of recent-vintage loans. The 2015 vintage accounted for almost US$200m of these watchlistings, which is the highest amount yet for the new vintage.

    The 2014 vintage contributed the highest watchlistings total at US$726m, although the 2011 vintage was not far behind at US$720m. .......

    News 27 October 2015

  • Underwriting duo poached

    Kirk Meyers and Randy Newman have joined Wells Fargo's securitisation underwriting team. Both are working on ABS and MBS transactions, arriving from Hilltop Holdings.

    Meyers has held a number of senior roles where he has worked in ABS, including at Southwest Securities and Banc of America Securities. Newman's previous roles have included a number of positions at Bank of America .......

    Job Swaps 27 October 2015

  • Euro secondary edges up

    Activity and some prices are edging up in the European securitisation secondary market, but trading remains patchy and could prove to be short-lived.

    Despite another slow session yesterday, where spreads were once again primarily unchanged there are signs of some small increases in secondary activity and prices. Trading continues to be highly selective but the sectors attracting investors are broadening.

    SCIWire 27 October 2015

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