CMBS

  • 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

  • Euro secondary still slow

    Despite hopes for a post-August spike, volumes in the European securitisation secondary market are still only growing slowly.

    "It's still pretty quiet and could take a while to really get going," says one trader. "This week has been slower than we hoped as broader market volatility continues and people are also waiting on the ECB today and the growing primary schedule .......

    SCIWire 3 September 2015

  • Ground lease venture formed

    Anika Equities has partnered with David Eyzenberg, principal at Avison Young, to form a subsidiary called Anika Equities GLF. The new entity will create and purchase ground leased fee positions.

    The aim is to acquire the ground under select quality-stabilised commercial real estate assets valued at US$15m and over at a premium cap rate. The ground is then leased back .......

    Job Swaps 2 September 2015

  • CMBS properties acquired

    CALCAP Advisors has acquired two Las Vegas apartment properties in an Auction.com sale. The seller for both properties was an LNR Partners entity, which purchased the assets via a CMBS foreclosure in January.

    The two properties are El Pueblo de Los Arboles Apartments and El Pueblo de Las Brisas Apartments, which were acquired for US$9.77m and US$4.75m respectively. The purchase .......

    News Round-up 2 September 2015

  • Japanese CMBS RFC issued

    Moody's is requesting comment on proposed enhancements to its approach to rating Japanese large loan and single-asset/single-borrower (SASB) CMBS, with the proposals likely to result in rating upgrades. The rating agency sought comment on similar CMBS in other jurisdictions last month (SCI 7 August).

    The rating agency's proposals are broadly the same as its proposed approach to rating large loan and .......

    News Round-up 2 September 2015

  • Retail therapy

    Store closures spur CMBS reassessment

    US CMBS players are keeping a cautious eye on struggling retailers with exposure to the asset class. Against this backdrop, asset diversity and the ability of loans to refinance are key differentiators.

    "The retail exposure in US CMBS is certainly plentiful," says Manus Clancy, senior md at Trepp. "The major worries currently lie with Sears and K-Mart, particularly where they .......

    News Analysis 2 September 2015

  • Euro ABS/MBS struggles back to life

    The European ABS/MBS market is slowly struggling back to life after the summer lull.

    Secondary market tone remains generally weaker and liquidity is still thin across the board. Euro-denominated prime assets continue to be the main focus for the market, but some buying interest has returned for peripheral paper, particularly Italian and Portuguese bonds.

    There are four BWICs on the .......

    SCIWire 2 September 2015

  • CMBS delinquencies, losses rise

    The Trepp US CMBS delinquency rate continued its summer trend of oscillation and inched up slightly in August. The delinquency rate for US CRE loans in CMBS moved up 3bp in August to 5.45%, undoing July's 3bp  improvement. The rate is now 65bp lower than the year-ago level and 30bp lower year-to-date.

    In August, US$1.3bn in loans became newly delinquent, which .......

    News Round-up 1 September 2015

  • Earliest peak vintage paying down

    The earliest of the peak US CMBS vintages is coming to the end of its ten-year life. Fitch rated 34 conduit transactions totalling US$79bn in 2005 and the transactions have so far paid down approximately 15% since issuance, including 4% in realised losses.

    Fitch's expected losses for this vintage total 7.6% of the original balance. Much of the remaining expected .......

    News Round-up 1 September 2015

  • A&P sell-off underway

    A&P is set to auction its remaining 153 stores in October after the bankrupt grocer received bids for 118 of its 296 stores. Bids have come in from competitors Albertsons, Royal Ahold and Key Food.

    A&P initially announced in July that 25 stores would close while the company reorganised (see SCI's CMBS loan events database). However, reports suggest .......

    News 28 August 2015

  • Term default risk 'not a concern'

    Morgan Stanley's latest review of CMBS 2.0 remittance reports shows a wide variety of activity. This month the first-ever 2015-vintage loans turned delinquent, a borrower requested an A/B-note modification and multiple loans were watchlisted as a result of vacancies.

    In total, eight loans with a balance of US$69.5m became delinquent in August, including the US$23.9m La Gran Plaza (securitised in .......

    News 28 August 2015

  • Euro secondary lacks conviction

    Despite an improving overall tone, the European securitisation secondary market continues to lack conviction.

    Even though broader market concerns are shelved for now yesterday was extremely quiet thanks to month-end and the summer lull. What small pockets of activity there were revolved around short-dated prime assets, some peripheral paper and a few major CMBS names.

    With a UK bank holiday .......

    SCIWire 28 August 2015

  • US CMBS loss severities normalise

    The weighted average loss severity of US CMBS loans liquidated at a loss rose to 41.6% in 2Q15, up from 24.5% in the prior quarter. Moody's notes that the 1Q15 figure was highly unusual, so last quarter's figure represents a return to historical levels.

    There were 234 loans liquidated with an average disposed balance of US$11.5m in 2Q15, compared to .......

    News Round-up 27 August 2015

  • FHA to provide PACE update

    The FHA will soon issue guidance on residential property-assessed clean energy (PACE) financing. Kroll Bond Rating Agency says there should be no negative credit effect on the senior PACE lien asset class, although borrowers may be encouraged to refinance and subordinate their PACE liens to mortgage liens, in which case prepayments could increase.

    The FHFA has already voiced its opposition .......

    News Round-up 27 August 2015

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving as broader market volatility reduces.

    Market sentiment improved across the board yesterday and consequently secondary spreads edged in slightly, albeit on continuing very low volumes. Yesterday's BWICs all traded at or above expectations with the Italian RMBS auction a highlight, though covers were below recent levels.

    Nevertheless, the summer lull is .......

    SCIWire 27 August 2015

  • Gagfah opportunity identified

    Price tiering for Gagfah CMBS has emerged over the summer, although not in the way that might be expected. These price movements make TAURS 2013-1 appear particularly cheap.

    Deutsche Bank European securitisation analysts initially expected a staggered prepayment throughout 2016 of the three Gagfah transactions, with TAURS 2013-1 the most likely to prepay on a standalone basis. However, the market appears .......

    News 26 August 2015

  • CRE recognition urged

    CREFC Europe has sent a letter to the European Commission, calling for it to include a special mention for CRE debt and CMBS when it releases its securitisation 'package' in accordance with its Capital Markets Union action plan next month. The letter stresses that the current proposals do not accommodate securitised CRE debt, while noting that a healthy CMBS market .......

    News Round-up 26 August 2015

  • Euro secondary struggles on

    The European securitisation secondary market continues to struggle on amid broader market volatility.

    Yesterday's European BWICs covered at reasonably strong levels where the line items did actually trade. However, the overall lack of flows continues to hamper price transparency and is pushing bid-offers still wider.

    Today's BWIC schedule currently sees four lists. At 10:00 London time is a seven line .......

    SCIWire 26 August 2015

  • US secondary slowdown

    US BWIC supply has slowed to a trickle today across asset classes.

    Events in China and the feared knock on impact on the US Fed's rate strategy look to have sidelined the bulk of US securitisation secondary market participants. The resultant absence of sellers is making for a quiet looking day across asset classes even for the fourth week of .......

    SCIWire 25 August 2015

  • US CMBS realise losses

    August remittance data shows a mixed picture for US CMBS. A couple of prominent loans have moved into special servicing, while subordinated notes have realised losses in LBUBS 2008-C1, JPMCC 2006-LDP7 and CSMC 2008-C1.

    The US$64m Chesapeake Square loan securitised in JPMCC 2004-LN2 has been transferred into special servicing, report Barclays analysts. It is the second time the loan has .......

    News 25 August 2015

  • Resurfaced CMBS amended

    Goldman Sachs has restructured its REITALY Finance CMBS transaction by splitting the €109.3m of class A senior notes to include some additional protections. The deal, which provides exposure to leisure properties, had recently been postponed by the bank (SCI 24 July).

    Fitch has assigned single-A plus and single-A ratings to the newly tranched A1 (€70m) and A2 (€39.3m) notes respectively. The .......

    News Round-up 25 August 2015
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