CMBS

  • 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

  • Euro secondary mixed

    Activity in the European securitisation secondary market continues to be mixed.

    For the most part ABS/MBS is still being hampered by very thin liquidity and prices are softening across the board. Prime assets continue to benefit from a buying bias albeit only in pockets. Unsurprisingly autos remain the main focus and are seeing reasonably healthy two-way flows, though spreads continue .......

    SCIWire 5 October 2015

  • Underwriting push-back?

    Concerns over the US$115m Prudential Plaza loan are believed to be behind COMM 2015-CCRE26 pricing this week at a significant concession across the capital structure. Morgan Stanley CMBS strategists suggest that underwriting of the loan, the largest in the deal, provides little margin for error and that it may be a future modification candidate under certain scenarios.

    The COMM 2015-CCRE26 .......

    News 2 October 2015

  • ESMA reports on rating agencies

    ESMA has published two sets of technical advice and a report on the regulation of credit rating agencies in the EU. These papers consider measures to provide stronger controls around credit ratings for structured finance instruments and to reduce reliance on credit ratings.

    The report finds that regulation has improved the governance and operation of rating agencies but that it .......

    News Round-up 2 October 2015

  • Delinquencies drop lower

    After four months of negligible movement, the Trepp US CMBS delinquency rate dropped significantly lower in September, falling by 17bp to 5.28%. The rate is now 75bp lower than the year-ago level and 47bp lower year-to-date.

    US$1.4bn in loans became newly delinquent last month, which put 26bp of upward pressure on the delinquency rate. Almost US$700m in loans were cured, .......

    News Round-up 2 October 2015

  • Agency seeks above-currency comments

    S&P is requesting comments on proposed changes to its methodology for assigning ratings above the foreign currency ratings on the sovereigns in a multijurisdictional structured finance transaction. The proposed criteria would constitute a global framework.

    Few rating changes are expected if the proposed criteria are adopted. From a test on CDOs, CMBS, ABS and covered bonds, the rating agency expects .......

    News Round-up 2 October 2015

  • SCI conference line-up unveiled

    Panellists have been confirmed for SCI's 8th Annual Securitisation Pricing, Trading and Risk Seminar, which is being held on 7 October in New York. The event is being held at Bank of America's offices at 250 Vesey Street (formerly Four World Trade Center).

    The conference programme consists of a series of roundtables and panel debates focusing on issues affecting the .......

    News Round-up 1 October 2015

  • New fund targets SF investment

    Franklin Templeton Investments has launched the Franklin K2 Long Short Credit Fund, which will invest in a variety of credit strategies. It aims to provide investors with access to a select group of hedge fund managers in a single diversified portfolio, while providing daily liquidity.

    Franklin Templeton acquired hedge fund solutions provider K2 Advisors in 2012. The new fund aims .......

    News Round-up 1 October 2015

  • Agency proposes new rating type

    S&P has issued a request for comment on its proposed criteria for assigning a new rating type. It would be specific to the financial obligations which structured finance special-purpose entities enter into with banks or other entities on the issuer's credit risk under a contract such as a swap or liquidity facility.

    The new counterparty instrument rating (CIR) would address an .......

    News Round-up 1 October 2015

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving in line with broader market sentiment, but activity remains limited away from VW.

    "Yesterday was very quiet again, but that is typical of quarter-end," says one trader. "However we did start to see bids back in VW ABS and it had stabilised at its wides by the close. This morning it .......

    SCIWire 1 October 2015

  • CMBS liquidations move back up

    Trepp reports that US CMBS loan liquidation volume rose back above US$1bn after lower summertime totals in July and August. In total, US$1.02bn across 70 loans were liquidated with losses in September, with the majority of the increase due to a jump in average loan size to US$14.56m from US$11.48m and US$9.44m in August and July respectively.

    Seven loans totalling .......

    News Round-up 30 September 2015

  • First significant Freddie K loss

    A US$5.3m loan securitised in FREMF 2011-K12 has been liquidated at a loss severity of 55%. It is the first Freddie K loan to be liquidated at a significant loss.

    The loan was secured by University Courtyard Apartments and was liquidated at a loss of US$2.92m. Class C notes have been written down from US$90.8m to US$87.9m as a result.

    News 30 September 2015

  • Crowdfunded properties transfer to special

    September remits show that three CMBS 2.0 loans totalling US$71m sponsored by the same borrower - Colony Hills - have been transferred to special servicing. According to Morgan Stanley CMBS strategists, the five properties securing these loans received financing via crowdfunding, which is an untested ownership structure in CMBS.

    The affected loans are the US$25.26m Colony Hills - Sandpiper and .......

    News 30 September 2015

  • Euro secondary drifts

    European securitisation secondary spreads are continuing to drift wider.

    "Yesterday was very quiet and today looks to be the same," says one trader. "Clients are definitely sidelined as market sentiment weakens."

    The trader continues: "There are a number of factors impacting sentiment both internal and external to ABS - there's the broader macro picture obviously, combined with our US equivalent .......

    SCIWire 30 September 2015

  • Fund liquidity proposals weighed

    Last week, the US SEC voted to propose tighter liquidity rules for open-end funds, including mutual funds and ETFs. While the rules would lead to several changes, the most significant one for CLO investors could be regarding liquidity buckets.

    The SEC's proposed rules would formalise the 15% limit on illiquid assets which currently serves as a guideline, classify assets into .......

    News 29 September 2015

  • Bridge resolution exceeds valuation

    Hatfield Philips International has negotiated the successful resolution of the Bridge loan, securitised in the Windermere X CMBS, via a highly targeted marketing process for the underlying properties. The gross disposal proceeds from the sale of the portfolio are in excess of €330m - a price that is greater than the latest public valuation - and net proceeds are expected .......

    News Round-up 29 September 2015

  • CMBS bulk sale planned

    CWCapital Asset Management is marketing US$2.12bn of distressed CRE loans and properties, most of which are from the company's specially serviced CMBS portfolio. There are 15 US CMBS transactions affected.

    The assets are slated to be auctioned in early November, although Bank of America Merrill Lynch analysts believe that the auction date may be updated over the next month. The .......

    News 29 September 2015

  • Euro secondary weakens

    The European securitisation secondary market has weakened further on the back of broader market sell-offs and continuing VW concerns.

    "Equity and credit markets are weaker and so are we," says one trader. "In particular the weakness in VW ABS has filtered through into the whole of the low beta space and with that weak it's extremely difficult to get anything .......

    SCIWire 29 September 2015

  • Euro secondary stays thin

    Liquidity remains thin in the European securitisation secondary market.

    Last week ended as anticipated with many players staying on the sidelines as a selling bias prevailed and bid-offers moved ever wider. Even flows in CLOs diminished as the relatively hectic BWIC schedule saw a flurry of DNTs. Overall, away from prime assets, secondary spreads have edged out further.

    Today currently .......

    SCIWire 28 September 2015

  • Model bail-in clause provided

    AFME has published a model clause for contractual recognition of bail-in. It provides model wording designed to assist banks in complying with obligations under the Article 55 of the EU's Bank Recovery and Resolution Directive (BRRD).

    The directive requires banks to insert clauses in contracts to give effect to bail-in in a very broad range of liabilities governed by non-EU .......

    News Round-up 25 September 2015

  • Colony adds finance chief

    Colony American Finance (CAF) has hired Christopher Hoeffel as cfo. He arrives from Investcorp, where he was head of real estate debt investments, including three high-yield debt funds.

    Hoeffel has also held senior roles at JPMorgan, Bear Stearns, Eastdil Realty and Walker & Dunlop. His duties have ranged from real estate investment banking to originating, underwriting and selling CMBS.

    CAF provides acquisition financing and .......

    Job Swaps 25 September 2015
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