CMBS

  • CMBS defaults at six-year low

    Fitch says that new US CMBS defaults continued a trend of declines, with the annual default rate falling to 0.6% in 2014 from 0.9% in 2013, a level not seen since 2008. The agency projects new CMBS term defaults to hold steady this year, with the cumulative CMBS default rate - currently at 13.3% - to decline slightly in 2015.

    News Round-up 14 April 2015

  • Walgreens lease expiries eyed

    Walgreens Boots Alliance plans to close 200 drugstores in the US, under a US$500m cost-cutting measure. The retailer is believed to be a tenant in 401 properties encumbered by 249 CMBS 2.0 loans with an allocated balance of US$1.5bn across 105 deals.

    US$383m of the exposure is concentrated in 2013-vintage deals and US$378m in 2015-vintage deals, according to Morgan Stanley .......

    News Round-up 14 April 2015

  • Sears JV exposure gauged

    Sears is set to form another real estate joint venture, with Simon Property Group (SCI 7 April), involving 10 properties valued at US$228m. Under the transaction, the retailer will receive US$114m and a 50% interest in the JV, while SPG will contribute US$114m in cash for its 50% interest and separately agreed to acquire a Sears property at the La .......

    News Round-up 14 April 2015

  • Euro ABS/MBS static

    The European ABS/MBS secondary market remains quiet but well-supported.

    "Secondary ABS/MBS is still static and very quiet post-Easter," says one trader. "Levels are pretty much unchanged and despite the Street feeling long they appear well-supported."

    The primary market is also dragging attention away from secondary trading. "There is a lot of investor interest focused on new issues including the latest .......

    SCIWire 14 April 2015

  • CMBS pay-offs fluctuating

    Trepp says the percentage of US CMBS loans paying off on their balloon date increased in March to 64.8% from the February rate of 59.5%. The March rate is slightly below the 12-month moving average of 65.4%. The highest rate in the last five years was in November 2013, when pay-offs totalled 81.3%.

    By loan count as opposed to balance, .......

    News Round-up 13 April 2015

  • Regional bank settlement agreed

    First Tennessee, the regional bank for First Horizon National, has agreed in principle with the US Department of Housing and Urban Development and the US Department of Justice to settle claims related to the bank's underwriting and origination of FHA-insured mortgage loans from 1 January 2006 through to 31 December 2008. Under the agreement, First Tennessee has committed to pay .......

    News Round-up 13 April 2015

  • Euro secondary stays slow

    The light BWIC volumes seen in European securitisation markets throughout the much of the Easter holidays look set to continue into today.

    It was a quiet day on- and off-BWIC on Friday with spreads for the most part unchanged and a similar pattern appears to be forming at today's open. CLOs, Dutch and UK prime continue to garner the most .......

    SCIWire 13 April 2015

  • Work-out pro moves

    Pepper UK has hired Alison Higgs as head of commercial loan servicing. She arrives from Irish Bank Resolution Corporation, where she was a property investment banker, managing CRE portfolios for loans in performing, sub-performing and non-performing categories. In her new role, Higgs will report to Pepper UK md Mark Caplan.

    .......

    Job Swaps 10 April 2015

  • GE divestment inked

    Blackstone and Wells Fargo have agreed to purchase most of the assets of GE Capital Real Estate in a transaction valued at approximately US$23bn. Closing of the acquisition is expected to occur in stages beginning in 45-60 days.

    As part of the transaction, Wells Fargo will purchase performing first mortgage commercial real estate loans valued at US$9bn in the US, .......

    Job Swaps 10 April 2015

  • Euro secondary flow holds sway

    The European secondary securitisation market is currently focused on flow trading.

    Securitisation markets are continuing to move independently of the rally in broader markets. Instead, spreads are being driven by technicals amid healthy if patchy flow trading.

    Autos, CLOs, CMBS, UK non-conforming, UK and Dutch prime are all either tighter or staying firm this week thanks to continued investor demand .......

    SCIWire 10 April 2015

  • Property prices, dept capital aligning

    US commercial property price changes have closely lined up with changes in CRE debt capital flows, reports Moody's. The agency says the price decline from the peak to the trough is now coinciding with a contraction of outstanding commercial debt capital.

    "This close relationship makes sense, given that CRE is a leverage-intensive business," says Moody's director of CRE research Tad .......

    News Round-up 9 April 2015

  • Mall loss severities pose risk

    Moody's says that legacy US CMBS continue to face credit risk based on regional mall loan loss severities in smaller markets that were more than double those in larger metro areas in 2014. While overall loss severities for mall loans declined last year, they remain elevated relative to loss severities for loans on other CMBS property types.

    In 2014, only .......

    News Round-up 9 April 2015

  • Euro ABS/MBS ploughs its own furrow

    Amid the broader credit market rally the European ABS/MBS market is ploughing its own furrow as activity continues to build slowly this week.

    "Overall ABS/MBS secondary market tone is constructive, but on low volumes," says one trader. "There's a lot of activity in primary, which is distracting many players, but that new issue is slow coming through and we're not seeing .......

    SCIWire 9 April 2015

  • US CMBS shifts longer

    The US non-agency CMBS secondary market is quiet this week so far, but is still seeing a shift towards longer dated paper.

    "While there has been some volume in new issue the holiday has meant it's been relatively quiet in terms of BWICs," says one trader. "The auction calendar isn't currently showing up anything of specific interest either."

    However, the trader .......

    SCIWire 8 April 2015

  • CMBS market cuts froth

    Despite accelerating last month, US CMBS 2.0 B-piece BWIC volumes remain significantly lower than they were this time last year. As demand remains high, this change of pace appears to reflect the secondary market becoming more negotiated.

    Morgan Stanley CMBS analysts welcome this more negotiated nature, noting that an increase in BWIC volumes is often a cautionary signal for frothy .......

    News 8 April 2015

  • Special servicing universe shrinking

    The US CMBS special servicing universe continues to shrink, dropping to levels not seen since 2010, according to Fitch's latest index results for the sector. CMBS loans in special servicing fell to US$38bn through end-2014, less than half the size of the US$91.7bn high-water mark observed in 2010.

    "Transfers out of special servicing are still more than doubling the rate .......

    News Round-up 8 April 2015

  • CMBS liquidations stay low

    For the second consecutive month, Trepp reports that US CMBS liquidation volume was below US$1bn in March and fewer than 50 loans were liquidated with a loss. Overall, nine of the last 12 months have registered less than US$1bn in CMBS liquidations and have averaged US$1.4bn in liquidation volume overall.

    The US$190m Pickwick Plaza, which took a 1% loss, was .......

    News Round-up 8 April 2015

  • Euro secondary slowly picking up

    As expected yesterday was quiet in the European secondary securitisation markets, but there are signs that the market is slowly picking up.

    "Yesterday was very quiet with few flows or many BWICs to give any guidance," says one trader. "Hopefully it will pick up today and there are a few more BWICs circulating; but some people are still out so .......

    SCIWire 8 April 2015

  • Premium recruits for multifamily push

    Premium Point Investments has hired Stephen Jones as md to lead its investments in multifamily opportunities. Jones joins from Capmark Finance, where he led a team that managed over 30 REO properties.

    Prior to this, he was md with RBS Greenwich Capital, where he was involved in the completion of a number of highly leveraged and structured transactions. He also .......

    Job Swaps 7 April 2015

  • CMBS delinquencies dip

    US CMBS delinquencies fell by 4bp in March to 4.73% from 4.77% a month earlier, according to Fitch's latest index results for the sector. Additionally, the dollar balance of late-pays fell slightly to US$17.8bn from US$17.9bn in February.

    New CMBS delinquencies finished March at US$357m, up slightly from US$327m in February. The largest new delinquency was the US$58m Collin Creek .......

    News Round-up 7 April 2015

  • Single-borrower issuance rising

    S&P says that US single-borrower CMBS issuance volumes have been rising over the past few years and will likely continue to do so in 2015. During 1Q15, new issuance in the sector stood at US$12bn, and is on pace to exceed 2014's full-year total of US$26bn.

    Single-borrower offerings accounted for roughly 46% of CMBS issuance through 1Q15, up from just .......

    News Round-up 7 April 2015
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