CMBS

  • 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

  • Post-crisis performance issues highlighted

    US$1.9bn of post-crisis CMBS loans were newly watchlisted in March, according to Barclays Capital figures. The major contributing vintage for watchlisted loans last month was 2014, while new 2011 vintage watchlists decreased month-on-month.

    WFRBS 2013-C15 and WFRBS 2013-C12 face the highest new watchlist exposure, each with 10% of current balance watchlisted in March. A property in the US$116m RHP Portfolio .......

    News Round-up 7 April 2015

  • Seritage spin-off prepped

    Sears has filed an S-11 Registration for Seritage Growth Properties, its REIT spin-off (SCI 4 March). The transaction will be sold through a rights offering that is expected to close by end-Q2.

    Including possible debt issued by the REIT, the transaction is anticipated to generate proceeds of over US$2.5bn. The sale includes 254 Sears-owned anchor pads, 158 of which have .......

    News Round-up 7 April 2015

  • Quiet start for European secondary

    It looks set to be a reasonably quiet start for European secondary securitisation markets after the long weekend, but the overall tone remains positive.

    Broader credit has started the week strongly and secondary ABS/MBS spreads have opened this morning unchanged on last Thursday's broadly firm levels. Unsurprisingly this week's European BWIC calendar is currently very limited with only two small .......

    SCIWire 7 April 2015

  • Oil causes Canada CMBS concerns

    The negatives of a sustained period of low oil prices seem likely to outweigh the positives for assets in Canadian CMBS, notes Fitch. Canadian CMBS conduit performance could diverge sharply between oil-focused areas in Alberta, such as the cities of Calgary, Edmonton and Fort McMurray, and the rest of the country.

    This is in contrast to US CMBS, where Fitch .......

    News Round-up 2 April 2015

  • CMBS delinquency rate flattens

    The Trepp US CMBS delinquency rate was unchanged in March, interrupting the recent string of falling delinquencies which saw the rate fall four consecutive months and for 20 months in the last two years. The delinquency rate for US CRE loans in CMBS remains 5.58% and is 96bp lower than a year ago.

    Almost US$1.1bn in loans became newly delinquent .......

    News Round-up 2 April 2015

  • Euro BWICs busy

    European secondary securitisation markets are closing out the holiday shortened week with a busy BWIC calendar.

    "The market is continues to be generally positive, though we've mostly traded sideways this week," says one trader. "Flows have primarily been from BWICs and today looks to be the same and a busy one going into the Easter break."

    Today's current BWIC schedule .......

    SCIWire 2 April 2015

  • Irish multifamily faces challenges

    Fitch says high ratings on CMBS backed by Irish multifamily housing (MFH) assets will be difficult to achieve, given the lack of investment track record and the limited historical data on the sector. In the agency's view, bonds rated above single-A need to survive stresses significantly above those experienced in the recent residential downturn, including a slowing economic recovery.

    MFH .......

    News Round-up 1 April 2015

  • Broadening the field

    Diverse issuance signals deepening primary market

    The European securitisation market has witnessed an influx of diverse primary issuance in recent weeks. Supply has bumped Q1 volumes up by nearly 50% over the same period last year and underlines the increasing depth of the sector.

    Notable recent transactions include Australian RMBS, UK buy-to-let RMBS, Dutch RMBS, Italian consumer ABS, Portuguese future flow ABS, European CLOs and the .......

    News Analysis 1 April 2015

  • Euro ABS/MBS sees pockets of activity

    Despite a generally quiet week the European ABS/MBS secondary market is continuing to see pockets of activity.

    "As you would expect for quarter-end, yesterday was quiet with most people busy with valuations and so on," says one trader. "However, we did see a couple of portfolio rebalancing BWICs from real money that mainly consisted of Dutch names and traded tight."

    SCIWire 1 April 2015

  • Euro ABS/MBS keeps quiet

    Month-end and a lack of substantial BWIC volume are keeping the European ABS/MBS secondary market quiet, but there are still patches of activity.

    "It was very quiet yesterday as you'd expect with month-end and a short week and today looks to be more of the same," says one trader. "That said, we got quite a bit done yesterday around the .......

    SCIWire 31 March 2015

  • US lodging fundamentals supported

    Fitch suggests that accelerating US GDP growth and low levels of new supply will support strong US lodging industry fundamentals during 2015. Robust demand has boosted occupancy rates, providing hotels with material pricing power, while US RevPAR is expected to increase by 6% this year based on a 1% occupancy gain and 5% average daily room rate growth.

    Trailing 12-month .......

    News Round-up 30 March 2015

  • Euro ABS/MBS slows

    The European secondary securitisation market appears to be slowing into month- and quarter-end.

    Friday saw a late flurry of activity after a sizeable mixed BWIC went through at 15:00 and drove some activity off the back of it. This went some way to redressing the slightly softer tone that had been emerging in ABS/MBS secondary, albeit without any major spread .......

    SCIWire 30 March 2015

  • US CMBS delinquencies just up

    The 60-plus day US CMBS delinquency rate for pre-2009 vintages increased slightly to 8.6% in March, according Barclay Capital securitisation research analysts. Increasing payoffs of 2005 vintage loans may push up pre-2009 delinquencies in the coming months.

    Liquidations continued to fall to a multi-year low as liquidations with losses larger than 3% measured only US$261m, while those with losses below .......

    News Round-up 27 March 2015

  • Eastland auction to increase LBUBS losses

    The US$38.5m Columbus, Ohio, Eastland Mall in LBUBS 2007-C1 has been bid at US$9.25m at auction. The mall was previously listed in auction last May (SCI 22 April 2014) but failed to meet the reserve price.

    The property appears to have been sold well below its most recent appraisal of US$18.6m in June 2014. This follows recent deterioration in the .......

    News Round-up 27 March 2015

  • CMBS underwriting causing concerns

    US CMBS underwriting has been moderately weaker in 2015 than in 2014, particularly considering the low rate environment, say Barclays Capital analysts. As a result, they believe that single-A and double-A rated tranches offer the best risk/return value, amid continued deteriorating credit quality.

    As issuance has increased, one trend that has remained consistent is the growing share of hotel properties .......

    News Round-up 26 March 2015

  • Hills sale loss projected

    The US$14.7m The Hills property in Dallas, Texas, has been bid at auction to a high level of US$18.1m, according to Barclays Capital securitised products analysts. Should that bid be accepted, CMBS losses would follow.

    While the property does not appear to have met a reserve price set by the seller, the bid was within range of the US$20.1m appraisal .......

    News Round-up 26 March 2015

  • Euro ABS/MBS supply keeps coming

    The European ABS/MBS secondary market is continuing to see healthy BWIC supply and to absorb it well.

    "We've seen plenty of supply from BWICs every day this week including today, but secondary ABS tone is still firm," says one trader. "Primary has been active too, but we're seeing no real softening as a result."

    ABS/MBS secondary has also remained insulated .......

    SCIWire 25 March 2015

  • Euro ABS/MBS themes continue

    Recent themes in the European ABS/MBS secondary markets are continuing.

    "Overall yesterday was very quiet, but where there was activity we saw a continuation of recent trading themes," says one trader. "For example Dutch prime moved in another 1-2bp, so it's very tight now - we're heading towards the mid-to-high teens for three-year bonds."

    Elsewhere, activity was patchy, the trader .......

    SCIWire 24 March 2015

  • First Irish CMBS since crisis

    Deutsche Bank is in the market with the first Irish CMBS to be issued since the financial crisis began. €174.98m DECO 2015-Harp has four classes of notes and will be rated by S&P and Moody's, marking the first time Moody's has rated a conduit style CMBS in Europe since 2007.

    The €90m class A notes have an advance rate of .......

    News 23 March 2015

  • REO liquidations could rise

    While losses on REO liquidations have been declining in recent months, the trend may reverse later in 2015, says Fitch. This is due to US CMBS servicers holding on to these assets for longer periods of time.

    In a year-over-year comparison, declines in REO portfolios have levelled off moderately, compared to a more rapid increase in the number of CMBS .......

    News Round-up 23 March 2015
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