CMBS

  • Defeasance firm expands

    Waterstone Defeasance has opened a new office in Irvine, California, to better meet the needs of its clients in the region. Director Addison McMillan has relocated from the firm's Charlotte office and will focus on business development activities, specifically in connection with CMBS defeasance transactions. He reports to John Felter, md, who will continue to oversee the firm's presence in .......

    Job Swaps 17 September 2015

  • Euro secondary stalemate

    The European securitisation secondary market stalemate is continuing as participants stay on the sidelines apart from for selected assets.

    "Things haven't changed much despite the better tone in global markets," says one trader. "In particular, off-the-run assets, such as CMBS and UK non-conforming, remain difficult to move, though UK non-conforming liquidity has slightly improved on the back of further pricing details .......

    SCIWire 17 September 2015

  • Liquidations lead to CMBS losses

    September remittance shows seven liquidated loans for JPMCC 2006-LDP7. The loans had US$133.7m in total balance and were liquidated at a severity of 63%, with losses wiping out the deal's G and H tranches.

    The largest property to be liquidated was the US$50.7m Shoreview Corporate Center, which was liquidated with a 96% severity. Barclays analysts note that the loan's performance .......

    News 16 September 2015

  • Capital markets group adds three

    Wilmington Trust has expanded its global capital markets structured finance group with three new hires. Rick D'Emilia has been hired as business development officer, Ben Jordan as head of transaction management and Steve O'Neal as asset servicing manager.

    D'Emilia will seek to develop new client relationships, while maintaining existing relationships in the structured finance industry. Prior to joining Wilmington Trust, D'Emilia was .......

    Job Swaps 16 September 2015

  • Euro secondary lull continues

    The European securitisation secondary market's summer lull has morphed into a September one with liquidity still very thin across the board.

    "There's still very little going on other than a few BWICs," says one trader. "For September it's bad and we can't even blame the summer anymore."

    The trader continues: "What little secondary activity there's been has focused around prime .......

    SCIWire 16 September 2015

  • NAIC MBS assumptions 'mixed'

    The NAIC's structured securities group (SSG) last week released recommendations for macroeconomic assumptions, scenarios and probability weightings for use in this year's annual surveillance of insurer-owned CMBS and RMBS. Morgan Stanley analysts believe these are mixed for CMBS but positive for RMBS.

    For CMBS, the probability weights across the four modelled scenarios remain consistent in 2015 with those used in .......

    News 15 September 2015

  • CMBS pay-offs dip

    Trepp reports that the percentage of US CMBS loans paying off on their balloon date slid modestly last month. The August reading stands at 73.8%, less than one point below the July percentage, but above the 12-month moving average of 67.1%.

    By loan count as opposed to balance, 61.7% of loans paid off in August. On this basis, the pay-off .......

    News Round-up 15 September 2015

  • Loan-level data reveals GSE differences

    The loan-level data recently disclosed by Fannie Mae (SCI 4 August) reveals similarities between historical loss severities for liquidated Fannie Mae mortgages and fixed loss severity schedules used in Connecticut Avenue Securities (CAS) risk transfer deals, notes Fitch. However, there are still differences in the loss severities among Fannie Mae and Freddie Mac loans.

    All CAS risk-sharing transactions issued so .......

    News Round-up 15 September 2015

  • Mixed outlooks for Dutch CMBS

    Recoveries from remaining Dutch CMBS 1.0 loans are expected to be limited. Dutch 2.0 loans are expected to perform better and risks are skewed toward prepayment.

    There remains high structural vacancy across the country, with vacancy rates of 13%-24% across the four major cities, according to CBRE. Deutsche Bank analysts note that there is also a significant number of old buildings .......

    News 15 September 2015

  • Euro ABS/MBS keeps BWIC focus

    The European ABS/MBS secondary market is continuing to revolve around BWICs

    "We've been fairly busy with a quite a few BWICs going through last week and this," says one trader. "Most seem to have traded reasonably well even though the macro backdrop remains challenging."

    The trader continues: "As with other markets we've softened a little but paper is still going .......

    SCIWire 15 September 2015

  • CMBS vintage delinquencies vary

    US CMBS delinquencies were nearly unchanged again in August, while rates varied widely by vintage, according to Fitch's latest index results for the sector. Loan delinquencies inched down to 4.52% from 4.53% a month earlier and the dollar balance of late-pays fell US$224m to US$16.9bn last month from US$17.1bn in July.

    Loans from legacy transactions continue to dominate the index, .......

    News Round-up 14 September 2015

  • US, European issuance forecast

    S&P projects that US securitisation issuance levels for 2015 and 2016 will experience moderate year-over-year growth, but will not reach the pre-crisis levels of 2006 and 2007. The agency forecasts issuance of US$474bn and US$537bn in 2015 and 2016 respectively, up from a total of US$462bn in 2014.

    "Although many securitisation products are benefiting from an improving economy and are likely to see increased issuance, .......

    News Round-up 14 September 2015

  • Euro secondary stays stable

    The European securitisation secondary market closed out Friday fairly quietly but with spreads still appearing stable after a mixed week.

    Transparency was hampered by a higher than normal proportion of DNTs or colour not released on BWICs, but overall market tone remains positive and secondary spreads are broadly unchanged at this morning's open. CLOs and prime ABS/MBS continue to be the main .......

    SCIWire 14 September 2015

  • CMBS loans enter special servicing

    The US$61.8m Phoenix Airport Marriott loan has returned to special servicing, having previously gone into special servicing last year (see SCI's CMBS loan events database). The loan is securitised in BACM 2006-3.

    The Phoenix Airport Marriott loan has enjoyed improved performance. It is now covering debt service - DSCR NOI is 1.21x in the 12 months .......

    News 11 September 2015

  • Servicer integration announced

    Värde Partners has acquired Trimont Real Estate Advisors as it plans to integrate operations between Trimont and subsidiary FirstCity Financial (FCSC). Värde will create a new Dallas office for Trimont as part of the process, and will retain the brand name for the acquired firm.

    Under the agreement, Värde will be majority owners while Trimont will hold a minority investment .......

    Job Swaps 11 September 2015

  • SFR servicing scarcity underlined

    The limited number of special servicers available to administer US single-family rental (SFR) properties in the event that the operator defaults is a risk to SFR securitisations, says Moody's. The limited near-term incentive for other servicers to enter the market presents an added issue.

    There are 22 SFR transactions outstanding with two entities, Midland Loan Services and Situs Holdings, assigned .......

    News Round-up 10 September 2015

  • CRE outlook 'tempered'

    Moody's is advocating caution for the European CRE sector against the backdrop of a nascent recovery on the continent. The agency warns of potential headwinds in the form of market volatility, interest rate hikes and rising development costs.

    Following the rise in CRE activity, Moody's has rated €1.5bn of European CMBS this year so far. "Commercial property companies have also .......

    News Round-up 10 September 2015

  • Real estate legal pro tapped

    Allen & Overy has appointed Lucy Oddy to its real estate finance group. Joining from Latham & Watkins, Oddy is a structured finance specialist who advises on a broad range of transactions, with a particular focus on CMBS and RMBS.

    Oddy's clients include financial institutions, funds and private equity firms. She focuses on employing new funding structures for real estate assets across .......

    Job Swaps 9 September 2015

  • CRT rating upgrades begin

    Moody's is the first rating agency to upgrade CRT bonds after taking action on CAS 2014-C01 M1, STACR 2013-DN2 M1 and both STACR 2014-DN1 M1 and M2. Upgrades for a wave of newer deals are also anticipated.

    The bonds were upgraded this month as a result of recent performance of the underlying pools and because of updated loss assumptions and .......

    News Round-up 4 September 2015

  • Euro secondary ticks up

    Broader market improvement on the back of the message from the ECB and the Chinese holiday has extended into the European securitisation secondary market with a slight uptick in activity and some improvement in pricing levels.

    Flows continued to revolve around the usual suspects with sterling-denominated prime and peripherals, especially Italy, benefitting the most. At the same time, the CLOs .......

    SCIWire 4 September 2015

  • CMBS barbelling rises

    US CMBS deals are increasingly including meaningful exposures to lower leverage loans that skew a pool's overall credit metrics. While investment grade exposure is also growing, there has been a sevenfold increase in high leverage loans since 2013, leading to increased barbelling.

    Kroll Bond Rating Agency examined the 101 conduits it rates to identify which underlying loans have credit characteristics consistent .......

    News Round-up 3 September 2015
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