CMBS

  • Euro secondary picks up

    After a lull for a holiday in many European jurisdictions yesterday, the European securitisation secondary market is picking up again today, at least in terms of BWICs.

    "We saw a pick-up in activity on Tuesday, but it slowed again yesterday as a lot of people were away," says one trader. "I expect flows to remain fairly quiet overall today as .......

    SCIWire 7 January 2016

  • Sukuk market to shrink

    The global sukuk market will remain below peak levels in 2016, says S&P, as the market's historic largest issuer has ceased issuing. Total annual issuance is expected to be US$50bn-US$55bn.

    Issuance in 2015 was US$63.5bn, which was down sharply from the US$116.4bn issued in 2014. The decrease can largely be attributed to the central bank of Malaysia - Bank Negara .......

    News Round-up 6 January 2016

  • US CMBS loss severities examined

    While a US CMBS special servicer's expertise may be the main factor in determining the recovery on a defaulted loan, other factors also contribute to the ultimate loss severity. S&P has identified the three fundamental factors as the originator and size of their origination portfolio, the time spent with the special servicer after a loan default and the geographical location .......

    News Round-up 6 January 2016

  • Euro secondary constructive

    A constructive tone is generating a good start to the year for the European securitisation secondary market.

    "The past few days have been relatively constructive, especially given weaker broader markets," says one trader. "We've seen quite a bit of activity across the board with investors coming back in to the market, especially real money."

    Buying interest has emerged in most .......

    SCIWire 6 January 2016

  • North Dakota loans eyed

    Morningstar Credit Ratings is monitoring nearly US$340m of CMBS exposure to the oil-drilling hubs of North Dakota, where drillers have been scaling back in the wake of plunging oil prices. Over the past 24 months, the agency has placed 13 loans - totalling nearly US$125m of this exposure - on its watchlist.

    The loans - originated in 2013 and 2014 .......

    News 5 January 2016

  • CMBS 2.0 remits reviewed

    The balance of delinquent and specially serviced US CMBS 2.0 loans more than doubled year-over-year, while paid-off loans quadrupled, according to Morgan Stanley figures. Over 40% of 2010- to 2014-vintage loans reported 2014 year-end NOIs less than underwritten, although DSCRs remain high.

    The number of delinquent 2.0 loans rose to 35 in December 2015, compared to 17 the year prior, .......

    News 5 January 2016

  • Survey foresees good year for CRE

    Conditions in the US commercial real estate market are expected to remain favourable in 2016, suggests a CREFC survey. Responses to the survey identify ample credit and capital available to meet borrower demand for new loans and refinancings.

    Incrementally rising interest rates are not seen as a significant concern. Rising rates will result in slightly higher borrowing costs, with capitalisation .......

    News Round-up 5 January 2016

  • CMBS delinquencies inch up

    The Trepp US CMBS delinquency rate increased by 4bp to 5.17% in December, following three straight months of improvement. However, the rate remains 58bp lower than last year's final level of 5.75%.

    Over US$1.6bn in loans became newly delinquent last month, which put 32bp of upward pressure on the delinquency rate. About US$450m in loans were cured last month, which .......

    News Round-up 5 January 2016

  • Euro secondary eases in

    The European securitisation secondary market is easing in to the New Year despite broader market volatility.

    The first trading day of 2016 saw thin liquidity but strong market tone as securitisation asset classes remained insulated from the weakening in wider credit yesterday. Secondary spreads held up across the board as levels echoed those seen at the end of December and there .......

    SCIWire 5 January 2016

  • ED hires for growth

    The European DataWarehouse (ED) has appointed Christian Thun as coo and deputy ceo, effective from the start of this year. He takes responsibility for key operational areas such as data management, customer account management and research.

    Thun previously spent 14 years at Moody's Analytics while he has also worked at Baetge & Partner and was also involved in structured finance .......

    Job Swaps 4 January 2016

  • Rating agencies making progress

    The US SEC has issued its two annual staff reports on credit rating agencies registered as nationally recognised statistical rating organisations (NRSROs). The reports show the NRSROs have made operational improvements and have enhanced process accountability, controls and governance.

    The SEC says that its reports show that all NRSROs have enhanced their understanding of their obligations as regulated entities and .......

    News Round-up 4 January 2016

  • SF lawyer appointed in London

    Lisa Cargill has joined the structured transactions team at Morgan Lewis. She brings extensive structured finance experience across numerous jurisdictions and asset classes.

    Cargill will be based in London but will also partner with the firm's US team to help clients there with their European business dealings. She was previously at Sidley Austin.

    .......

    Job Swaps 4 January 2016

  • Concentration risk for Japanese CMBS

    The prepayment rates of underlying loans backing Japanese apartment loan CMBS remain high, which could lead to concentration risk in the loan pools, says Fitch. However, strong credit enhancement should act to mitigate this risk.

    The rating agency believes that the high prepayment rates are driven by refinancing. The outstanding balance of bank loans extended to individuals who manage rental-housing .......

    News Round-up 4 January 2016

  • 'No hope' for hope notes

    Despite the recovery in many US CMBS subsectors, Fitch continues to expect no recoveries from hope notes. This is because their structures do not provide sufficient incentive for borrowers to repay.

    The usage of hope notes peaked in 2011, with dispositions taking approximately 3.5 years from special servicing transfer to ultimate disposition. Loans totalling US$3.5bn were modified into hope notes .......

    News Round-up 4 January 2016

  • CMBX rule updates expected

    The Markit CMBX.9 index is expected to launch on 25 January 2016. Similar to the previous CMBX series (SCI 16 December 2014), CMBX.9 will likely include some modifications to the index rules to accommodate new trends seen in conduit deals in 2015.

    Morgan Stanley CMBS strategists highlight three notable CMBX index rule amendments for CMBX.9, the outcomes of which depend .......

    News Round-up 23 December 2015

  • Class A share added to fund

    Semper Capital Management has added a class A share to its Semper MBS Total Return Fund. Class A shares are retail shares that are charged a front-end sales load of up to 2%.

    The shares are charged a 0.25% Rule 12b-1 distribution and servicing fee, but do not have a contingent deferred sales charge. However, redemptions within 18 months of purchase of .......

    News Round-up 22 December 2015

  • RMBS, CLO fraud admitted

    A former co-head of US ABS, RMBS and CMBS trading at RBS Securities has waived his right to indictment and pleaded guilty to participating in a multimillion dollar securities fraud scheme. Adam Siegel admitted that he and colleagues conspired to increase RBS's profits on CLO and RMBS trades at the expense of customers.

    Siegel held the role at RBS from .......

    Job Swaps 22 December 2015

  • Conduit NOI trends assessed

    While US commercial property prices have now topped pre-crisis peak levels, NOI for collateral backing CMBS conduit loans has not yet fully recovered, notes Moody's. An analysis of NOI trends shows collateral NOI is up 9% from its 2004 baseline level, but 2% down from its pre-crisis peak.

    The rating agency analysed year-over-year changes in property financials between 2004 and .......

    News Round-up 21 December 2015

  • CMBS defaults edge up

    The 12-month rolling maturity default rate for European CMBS increased slightly in November to 10.5% from the previous month, according to S&P's latest index results for the sector. The delinquency rate for continental European senior loans decreased to 60.3% from 61.3%, while the rate for UK loans remained stable at 20%. Meanwhile, the overall delinquency rate for senior loans decreased to 48% from 49%.
     

    .......

    News Round-up 21 December 2015

  • Italian regs boost ABS

    The Bank of Italy's regulatory framework enacted in 2015 for financial intermediaries carrying out servicing activities is credit positive for all Italian structured finance deals, says Moody's. Certain types of consumer ABS deals - Cessione del Quinto (CDQ) and Delegazione di Pagamento (DP) - will benefit the most.

    Moody's notes that organisational and risk-control requirements for servicers will become stricter .......

    News Round-up 18 December 2015

  • Euro secondary stalls

    Activity in the European securitisation secondary market has stalled.

    Year-end illiquidity was fully in evidence yesterday with an extremely slow day across the board and secondary spreads closed unchanged. Italian and Dutch paper did garner some interest, but saw negligible trading.

    There is currently one BWIC on today's European schedule - a single €1.9m line of QUADF 2011-1 A1 due .......

    SCIWire 18 December 2015
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