CMBS

  • Default rate hits post-crisis low

    The default rate for global structured finance securities rated by S&P fell for the third successive year to 4.2% in 2014, the lowest level since 2008. The downgrade rate also declined to an eight-year low of 10% in 2014, while the upgrade rate increased to 8.4%.

    "Overall global structured finance credit quality declined again in 2014, with the number of .......

    News Round-up 23 June 2015

  • Euro secondary turns positive

    The European securitisation secondary markets are taking a positive turn albeit at a statelier pace than broader markets.

    "Sentiment is a little bit better though our markets are slower to come back than others," says one trader. "Spreads haven't moved much this week so far, but are slightly tighter since Barcelona and there's definitely more liquidity around."

    Activity remains patchy, .......

    SCIWire 23 June 2015

  • Senior delinquencies decline

    The 12-month rolling loan maturity default rate for S&P-rated European CMBS increased to 24.6% from 23.7% at end-May, according to the agency's latest EMEA CMBS monthly bulletin. However, the senior loan delinquency rate decreased to 50.2% from 51.1%.

    The delinquency rate for continental European senior loans decreased slightly to 63.6% from 63.7%. The rate for UK loans decreased to 21.4% .......

    News Round-up 22 June 2015

  • Scratch and dent fund launched

    Värde Partners has announced the final close of its Real Estate Credit Fund with US$500m of committed capital. Described by the firm as a 'scratch and dent' fund, the offering will focus on performing and sub-performing credit in the US$2.8trn US commercial real estate market. Through both secondary purchase and new origination strategies, it will target loans with unpaid principal .......

    News Round-up 22 June 2015

  • Euro ABS/MBS slow return

    The European ABS/MBS secondary market is slowly returning to life following the Barcelona conference.

    Friday was slow with only a few trades going through and a handful of line items on BWIC. Today's open sees most ABS/MBS participants seemingly content to sit on the sidelines awaiting news on the Greece-EU meetings despite the emerging more positive tone in broader markets.

    SCIWire 22 June 2015

  • CMBS 2.0 mod requested

    A 2010-vintage loan securitised in JPMCC 2010-C1 has been unable to refinance on its maturity date and the borrower has requested a modification. The US$13.7m Aquia Office Building loan accounts for 4.37% of the CMBS.

    The loan was unable to refinance at maturity at the start of this month due to its largest tenant - TASC - exercising its lease .......

    News Round-up 19 June 2015

  • Starwood Property promotes CRE pair

    Starwood Property Trust has promoted Adam Behlman and Isaac Pesin each to co-president for its real estate investing and servicing team. They will oversee the CMBS and real estate investment platform and also lead LNR Partners.

    Behlman has served as head of capital markets and chief risk officer for LNR since 2011. He was previously head of real estate finance .......

    Job Swaps 18 June 2015

  • Gap exposure gauged

    Gap has announced that it plans to close 175 Gap branded stores in the coming years, including 140 this fiscal year. Barclays Capital CMBS analysts identify 81 loans with US$6.8bn in conduit CMBS balance that have Gap listed as a top-five tenant (excluding outlet stores and closed stores).

    The store closings will not affect Gap outlet stores or other brands .......

    News Round-up 17 June 2015

  • US CMBS widening

    US non-agency CMBS secondary spreads are heading wider.

    "Spreads are generally backing up and the market feels weaker overall," says one trader. "However, it's not universal and there are no fire sales going on."

    Market sentiment is also being impacted by activity in primary. "The new issue market is only really limping along at the moment," says the trader. "For .......

    SCIWire 16 June 2015

  • Appeals ruling 'credit negative'

    Moody's says that the recent New York Court of Appeals ruling that representations and warranties in most RMBS and CMBS transactions have a life span of only six years, beginning on the closing date of the securitisation (SCI 12 June), is credit negative. This is because some R&W breaches may only be apparent much later than six years after a .......

    News Round-up 16 June 2015

  • CRE pro poached

    Jonathan Pollack has joined Blackstone as a senior md in its real estate group. He will be the cio for Blackstone Real Estate Debt Strategies (BREDS), reporting to global head of BREDS Mike Nash. Pollack was previously md and global head of CRE for Deutsche Bank, as well as head of risk for structured finance.

    .......

    Job Swaps 16 June 2015

  • Online CRE loans offered

    RealtyMogul.com says it has received US$250m in direct fincial commitments from large institutional investors. The commitments will allow the online marketplace to offer two new products to CRE borrowers, including a three- to five year-floating rate bridge product priced in the 4% to 6% range.

    The other product is a fixed rate programme - which is priced in the 4% range - .......

    News Round-up 16 June 2015

  • Successful ED project 'requires support'

    While the European DataWarehouse (ED) has continued to make strides over the last 12 months, data shortcomings in the market which are beyond the ED's power to address threaten to derail further progress. For this reason, it may be necessary for the ED's mandate to be expanded.

    The ED tracks loan-level data for 890 deals, backed by more than 40 .......

    News 16 June 2015

  • Euro secondary quiet

    With the Barcelona conference getting fully underway today it is expected to be very quiet in the European securitisation secondary markets over the next couple of days.

    The participants that remain at their desks are likely to maintain the risk-off stance of the past week as Greece and broader credit market volatility continue to dominate attention. However, there is one .......

    SCIWire 16 June 2015

  • More of the same for European ABS/MBS?

    Last week's weaker tone in the European ABS/MBS secondary market looks set to continue.

    Last week saw overall ABS/MBS spread widening on the back of negative market sentiment, poor liquidity and broader rates volatility. This week is likely to see even more of the same with continuing Greek concerns and most market participants away from their desks in Barcelona.

    There .......

    SCIWire 15 June 2015

  • SFR default remedies differ

    Moody's suggests that special servicers will likely pursue different strategies to remedy defaults between single-borrower and multi-borrower SFR securitisations. This is because differences in the size of the borrowers of the loans backing these securitisations will affect the defaulted loan's recovery values under different resolution options.

    "Special servicers will be more likely to forbear or modify defaulted loans in single-borrower .......

    News Round-up 12 June 2015

  • Auction listings spike

    The latest Auction.com listings indicate that a further 44 properties with US$622m in allocated balance across 30 CMBS loans are up for bid in late June and July (SCI 19 May). This is the highest monthly auction volume year-to-date, driven primarily by several large loans, according to Barclays Capital CMBS analysts.

    "The increase in large loans was noticeable, with 13 .......

    News Round-up 12 June 2015

  • Euro ABS/MBS struggles on

    The European ABS/MBS secondary markets continue to struggle with poor liquidity and broader market volatility.

    Market tone continued to be weak on light volumes yesterday and looks unlikely to change today in the penultimate gasp before Barcelona amid further Greek concerns. Prime assets continue to attract what activity there is and spreads there are holding up reasonably well, while peripheral .......

    SCIWire 12 June 2015

  • Euro ABS/MBS drifts

    The European ABS/MBS secondary market is continuing to drift without volume or direction.

    "The combination of Greek headlines and the run up to Barcelona is making for a difficult environment," says one trader. "Liquidity continues to be exceptionally poor with a lot of investors sitting on the sidelines. There are still quite a few BWICs but we're only seeing very limited .......

    SCIWire 11 June 2015

  • CMBS divide emerging

    Fitch reports that a number of recent US CMBS deals have seen credit enhancement levels drop, despite the fact that collateral credit quality did not improve and in some cases declined. The agency notes that this goes against the conventional theory that credit enhancement rises as loan quality slips.

    The transactions in question, not rated by Fitch, are: COMM 2015-CCRE23; CSAIL .......

    News Round-up 10 June 2015

  • Euro ABS/MBS hindered

    The risk-off attitude across the European ABS/MBS secondary market is continuing to hinder activity.

    "Liquidity is pretty terrible at the moment," says one trader. "The tone of the market is generally weak with concerns about Greece hampering broader markets and ABS specific issues around the disappointment over the ABSPP."

    BWICs continue to be churned out however and are going through .......

    SCIWire 10 June 2015
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