CMBS

  • Daily returns index launched

    FTSE Group and the National Association of Real Estate Investment Trusts (NAREIT) have launched the FTSE NAREIT PureProperty index series, which provides daily real estate price and total returns at the level of both property and equity investments. The index series' values are inferred from price appreciation and income distributions generated by portfolios of properties owned by listed US equity REITs.

    Values .......

    News Round-up 2 June 2015

  • CMBS upgrades turn the corner

    The annual number of upgrades among S&P-rated North American CMBS exceeded the number of downgrades in 2014 for the first time since 2007. The upgrade-to-downgrade ratio reached 1.28, which is up from 0.79 in 2013.

    In total, of the North American CMBS ratings that were outstanding at the beginning of 2014, S&P lowered 244 during the year and raised 312. .......

    News Round-up 2 June 2015

  • CMBS delinquencies brake sharply

    The Trepp US CMBS delinquency rate dropped dramatically in May after six months of hovering within a 23bp band. From the start of 2015 through April, the rate inched down from 5.66% to 5.57%, but the delinquency rate for US CRE loans in CMBS is now at 5.4% in May and down by 17bp.

    In the last 25 months, the delinquency rate .......

    News Round-up 2 June 2015

  • Euro ABS/MBS searches for direction

    With low levels of activity and spreads range-bound the European ABS/MBS secondary market is looking to new issuance for a direction.

    "Yesterday was very slow with most players sitting on the sidelines waiting for news on Greece," says one trader. "There is good activity in primary however and most people are looking there for some direction."

    The trader continues: "With .......

    SCIWire 2 June 2015

  • CMBS losses shift up

    Trepp reports that 105 US CMBS loans totalling US$1.25bn were liquidated with a loss in May, following three months of relatively few loans being disposed of with losses. However, the results were somewhat skewed by the US$80m Schron Industrial Portfolio's B-note that was written off in full, while the US$220m A-note paid off without loss.

    Another six loans totalling US$57.46m took .......

    News Round-up 1 June 2015

  • Lodging CMBS growing strong

    Trepp expects the volume of US CMBS backed by lodging assets to grow over the next several years as new loans are issued and maturing loans are refinanced. However, the sector faces several challenges, including slower global growth and a stronger US dollar, which could reduce hotel room demand in the US.

    Trepp estimates that US$11bn in lodging sector CMBS loans will mature in .......

    News Round-up 1 June 2015

  • Euro ABS/MBS stays positive

    The European ABS/MBS secondary market ended last week quietly and looks to be starting the month in a similar fashion, but market tone remains positive.

    In Friday's quiet as anticipated session core prime paper was the main focus for buying interest. The few BWICs there were, mainly revolving around UK bonds, also traded reasonably well.

    Meanwhile, peripherals seem to have .......

    SCIWire 1 June 2015

  • SFR market moves east

    While the single-family rental securitisation market continues to grow, the profile of the underlying properties is changing. Where earlier deals were overwhelmingly backed by properties from the western US, more recent deals contain heavier concentrations of eastern properties.

    SFR issuance this year has passed US$4.3bn and is on course to surpass last year's total, say Morgan Stanley analysts. It is .......

    News 29 May 2015

  • CMBS originations head named

    Wells Fargo has promoted Eric Gunderson to regional manager of US CMBS originations for the southwest US. He replaces Brad Wilmot, who has moved to Goldman Sachs in an undisclosed role.

    Gunderson is a director at Wells Fargo and was a senior commercial originator for the bank, prior to his new appointment. He has previously held senior roles at JPMorgan, RBS and Credit Suisse, .......

    Job Swaps 29 May 2015

  • Euro secondary subdued

    A distracted European securitisation secondary market looks to be closing the week in subdued manner.

    With traders distracted by a busy primary market and the large CDO liquidation, for which the results are yet to be released, yesterday's European secondary market was relatively quiet. Month-end today should ensure more of the same.

    Away from the big list the large ABS .......

    SCIWire 29 May 2015

  • Corinthian Colleges exposure gauged

    Corinthian Colleges recently announced closures for the remainder of its 28 campuses (see SCI's CMBS loan events database). Morgan Stanley CMBS strategists identify five CMBS 2.0/3.0 loans totalling US$94m with exposure to the closures, potentially representing idiosyncratic risk.

    The largest of the loans is the US$47.4m Netpark Tampa Bay (securitised in COMM 2014-UBS4), where Corinthian Colleges is the .......

    News Round-up 28 May 2015

  • CMBS workouts exceed transfers

    Moody's reports that a total of 122 European CMBS loans were in special servicing at the end of April, securitised within 45 large multi-borrower and 36 single-borrower CMBS transactions. One European loan was newly transferred into special servicing in April, while six loans were worked out.

    The pace of workouts continues to exceed new transfers, with the Government Income Portfolio .......

    News Round-up 28 May 2015

  • Euro ABS/MBS sees weak peripherals

    While broader markets have been boosted overnight by news on Greece, the European ABS/MBS secondary market is still showing signs of peripheral weakness.

    "It's been a slow week but we are bit weaker in Portuguese and Greek names," says one trader. "As a result of peripheral concerns we're seeing customers bringing out more and more paper."

    At the same time, .......

    SCIWire 28 May 2015

  • Euro secondary stays stable

    European securitisation secondary markets are staying stable despite the broader credit market weakness of the past couple of days.

    "Macro noise is keeping investors on the sidelines and there's quite a bit of new issuance to distract from secondary too," says one trader. "However, the general tone remains unchanged and we're still experiencing the status quo of the past couple .......

    SCIWire 27 May 2015

  • Specially serviced loan values rising

    The average appraised value for specially serviced US CMBS loans has increased slightly by 1%, according to Fitch. While the increase is marginal, there is a considerable range between the average for increases in appraisal values and the average for decreases.

    Approximately 51%, or 330 of the 641 loans in Fitch's study, experienced an increase in appraised value from the previous appraisal, .......

    News Round-up 26 May 2015

  • Euro secondary starts settled

    Last week ended quietly as anticipated for European secondary securitisation markets and, following the long weekend either side of the Atlantic, looks likely to begin this in settled form barring any interference from macro-driven volatility.

    Secondary spreads ended last week broadly unchanged on the day on the back of continued light flows. Meanwhile, the few BWICs there were on Friday .......

    SCIWire 26 May 2015

  • Performing maturity wave projected

    The US$64.2m Watergate loan - the fourth-largest in GSMS 2006-GG6 - is among some US$40.21bn of performing CMBS loans maturing this year, according to Morningstar. The agency says that this marks the start of a wave of loans securitised during 2005 to 2007 that are now approaching their maturity dates.

    Over an expected three-year wave, Morningstar says that US$264.63bn worth of performing CMBS loans .......

    News Round-up 22 May 2015

  • Financing portal debuts

    Auction.com has introduced its CRE Financing Portal, which enables investors to apply for financing on qualified assets via the Auction.com site. The portal provides investors with the opportunity to complete financing applications, view their loan application status in real time, upload documents from their desktop, laptop or tablet, access their term sheet and communicate with lenders directly.

    Financing options will be .......

    News Round-up 22 May 2015

  • CMBS 2.0/3.0 watchlistings continue

    US$1.2bn across 92 US CMBS 2.0/3.0 loans were newly watchlisted this month, mostly from the 2013 and 2014 vintages, according to Barclays Capital figures. The first 2015-vintage watchlisting also contributed to the overall balance.

    MSBAM 2013-C8 has the largest exposure to May's watchlistings at 10%, or US$120m, primarily from the largest watchlisted loan this month - the US$115m The Crossings .......

    News Round-up 22 May 2015

  • Euro BWICs ease

    The BWIC-led week in European securitisation secondary markets is easing to a close today.

    BWICs dominated ABS/MBS secondary trading once again yesterday and the bonds that traded did so in line with expectations. Flow trading was patchy once more, but broadly spreads remained unchanged though Italian and Portuguese paper continued to weaken.

    At the same time, European CLO secondary activity .......

    SCIWire 22 May 2015

  • Euro ABS/MBS holds up

    European ABS/MBS secondary spreads are mostly holding up despite a heavy BWIC calendar and a general risk-off attitude.

    "There were a lot of BWICs yesterday and nearly all line items traded well," says one trader. "The calendar is quieter today, but overall volume in BWICs significantly up."

    This contrasts with the rest of the secondary market, the trader adds. "Elsewhere .......

    SCIWire 21 May 2015
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