CMBS

  • Euro secondary unchanged

    The European securitisation secondary market continues to see light flows and only pockets of activity.

    Yesterday saw another day of broadly directionless trading and limited activity away from BWICs. Consequently, spreads across the board were unchanged at the close.

    Once again, UK non-conforming was one of the few sectors to see above average activity on the day and pricing levels .......

    SCIWire 15 October 2015

  • Cap rates projected

    Given investor concern over the impact of higher interest rates on capitalisation rates and CRE values, S&P has developed a cap rate simulation over a 10-year horizon for the five major property types. The tool utilises future interest rate projections from the agency's term structure model and a regression that was created from historical CMBS loan data.

    "In the current .......

    News Round-up 14 October 2015

  • Euro secondary consolidates

    Yesterday was primarily about consolidating recent gains in the European securitisation secondary market, though pockets of activity remain.

    "After a few days of market strength, yesterday saw some stabilisation," says one trader. "At the same time, away from BWICs flows reduced again."

    However, there continue to be strong pockets of activity. "We again saw activity in autos with DRVON bid .......

    SCIWire 14 October 2015

  • Euro ABS/MBS keeps impetus

    Despite a quiet day yesterday thanks to the US holiday, the European ABS/MBS secondary market is still heading in the right direction.

    "We're seeing more flows and there's generally more impetus to get things done," says one trader. "Stability in broader markets for the last six or seven days, though they have opened weaker this morning, is bringing people back .......

    SCIWire 13 October 2015

  • Retail late-pays trend up

    US CMBS delinquencies fell last month, despite retail late-pays trending slightly higher, according to Fitch's latest index results for the sector. Loan delinquencies dropped by 6bp in September to 4.46% from 4.52% a month earlier. The dollar balance of late-pays fell by US$87m to US$16.8bn from US$16.9bn in August.

    Resolutions of US$688m in September edged out new delinquencies of US$624m. .......

    News Round-up 12 October 2015

  • Cross-asset conviction

    Renaud Champion, head of credit strategies for La Fran&#...

    Q: How and when did La Française Global Investment Solutions (LFGIS) become involved in the securitisation market?
    A:     LFGIS is the solutions business line of the La Française Group. LFGIS was established in late 2012 and is 35% owned by its founders - Sofiene Haj Taieb and Arnaud Sarfati - and key personnel; La Française is .......

    The Structured Credit Interview 12 October 2015

  • Euro secondary settled

    The European securitisation secondary market is continuing in the settled pattern seen of late.

    There were no surprises on Friday as a relatively quieter day, though flows continue to improve slowly, saw spreads close broadly unchanged overall. Today looks set to follow a similarly settled pattern especially given the US public holiday.

    Peripherals continue to benefit the most from buying .......

    SCIWire 12 October 2015

  • German multifamily stability expected

    German multifamily housing (MFH) transactions should continue their trend of stable to positive collateral performance over the coming quarters, says Fitch. Rental levels have increased while vacancy rates are stable and cost ratios over the last 12 months have been within expectations.

    The rating agency expects the MFH sector to also continue to consolidate, following a series of mergers over .......

    News Round-up 9 October 2015

  • CMBS pay-offs slide

    The percentage of US CMBS loans paying off on their balloon date slid sharply last to 60.4%, according to Trepp, more than 13 points below the August percentage. The rate is also below the 12-month moving average of 67.7%.

    By loan count as opposed to balance, 65.3% of loans paid off in September. On this basis, the pay-off rate was .......

    News Round-up 9 October 2015

  • Euro secondary stays on track

    Ever-improving broader markets are driving increasingly positive sentiment in the European securitisation secondary market and its revival over the past few days remains on track.

    Yesterday again saw an uptick in overall activity though flows were slightly down as the heavier BWIC calendar took precedence. There was buying interest across the board, albeit still restricted to selected names in each .......

    SCIWire 9 October 2015

  • FHSL 2006-1 resolution eyed

    Both the RPI and interest rate swap providers for the Fairhold Securitisation CMBS are set to exercise their rights to terminate the hedges. A period of lengthy discussion is now expected between the borrower (ultimately the Tchenguiz brothers), bondholders and swap counterparties with a view to a resolution.

    At the last reporting date in May, the aggregated mark-to-market of the .......

    News Round-up 9 October 2015

  • CMBS ruling logic questioned

    A legal ruling has had to fill in the gaps in documentation for yet another pre-crisis transaction - Gemini (Eclipse 2006-3) - as CMBS 1.0 shortcomings continue to cause problems. However, while the court has ruled in favour of what it believes is most in line with the deal's intended economics, its logic has been questioned.

    The court was asked .......

    News 8 October 2015

  • Euro secondary return continues

    Activity and prices in the European securitisation secondary market continue to return to normal, but liquidity is still below usual levels for this time of year.

    "We saw flows across all asset classes yesterday," says one trader. "Even UK non-conforming is taking off having been very quiet recently."

    Peripherals are continuing their rise of recent days. "Prices are up noticeably, .......

    SCIWire 8 October 2015

  • New US property price peak

    Central business district (CBD) office was the best-performing segment of Moody's/RCA Commercial Property Price Indices (CPPI) national composite index in the last three months. CBD office prices rose 6.3%, with suburban office prices rising 3%.

    The CPPI rose 1.6% in August, led by a 1.8% rise in the core commercial segment. It has now topped its pre-crisis peak on a .......

    News Round-up 7 October 2015

  • Euro secondary accelerates

    The pick-up in activity and pricing levels in the European securitisation secondary market is accelerating.

    Yesterday saw a further improvement in sentiment on the back of the same in broader markets. As a result, flows increased, though liquidity is still very patchy, and spreads were broadly flat to slightly tighter. Prime spreads, including autos, continue to hold firm, but it .......

    SCIWire 7 October 2015

  • Synthetic CRE note prepped

    Scope Ratings has assigned a preliminary triple-B rating to an unusual synthetic securitisation. The €10m Herrenhausen Investment - Compartment IV note represents the 10.9% first-loss exposure to a €97m syndicated portion of a €347m commercial real estate loan.

    The loan was issued by a Landesbank, and syndicated with Deutsche Hypothekenbank and another German mortgage lender. It is exposed to the .......

    News Round-up 7 October 2015

  • Limited cap change effect for CMBS

    The capitalisation rate increases likely to follow a move by the Federal Reserve to raise interest rates will have little effect on the ratings assigned to new issue CMBS, says Moody's. Among seasoned transactions, recovery rates for specially serviced loans could decline and the percentage of loans unable to refinance at maturity could increase.

    Moody's expects the 10-year Treasury rate .......

    News Round-up 6 October 2015

  • Euro CMBS leader appointed

    DBRS has appointed Christian Aufsatz to its London office, where he will lead the European CMBS team. He was previously head of European securitised products strategy at Barclays.

    At Barclays, Aufsatz led analysis and research for European securitised products, with a focus on CMBS and CLOs. He previously spent eight years at Moody's, where he became team leader for EMEA .......

    Job Swaps 6 October 2015

  • Euro secondary slowly improves

    Tone and activity are slowly picking up in the European securitisation secondary market.

    Bolstered by stronger broader markets sentiment in most secondary sectors has improved, which is helping to stabilise spreads and encourage participants to return, but liquidity remains generally thin. In prime, autos led the way yesterday notably in VW assets, whereas in peripherals Portuguese bonds saw the biggest .......

    SCIWire 6 October 2015

  • CMBS vintage differences grow

    There are considerable differences between early US CMBS 2.0 transactions and those rated in 2015, says Fitch. The rating agency continues to observe declining underwriting standards and increasing credit enhancement levels.

    Credit enhancement has significantly increased at both triple-A and triple-B minus since 2010. Triple-A credit enhancement has increased from 17.125% in 2010 to 23.625% in 2015, while triple-B minus enhancement .......

    News Round-up 5 October 2015

  • CMBS 2.0/3.0 defeasance tallied

    In a review of US CMBS 2.0/3.0 remit reports, Morgan Stanley CMBS strategists find that 75 loans totalling US$1.5bn have prepaid and 155 loans totalling US$3.4bn have defeased, driven by rising property valuations and falling interest rates. An additional 88 loans totalling US$2.2bn have paid off during their open periods or at maturity.

    As a result of these prepayments, 19 .......

    News Round-up 5 October 2015
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