CMBS

  • Tesco CMBS hit

    Moody's has downgraded from Baa3 to Ba1 the ratings of seven classes of notes issued by Tesco-linked CMBS. Approximately £3.89bn of debt (initial outstanding) is impacted by the move.

    The affected transactions are Delamare Finance and Tesco Property Finance 1-6. The move reflects Moody's downgrade from Baa3 to Ba1 of the long-term senior unsecured rating of Tesco. The CMBS are .......

    News Round-up 12 January 2015

  • CRE prices, employment correlated

    The recent increase in US commercial property prices closely corresponds to the national increase in employment, with the strength of the price-employment relationship lasting for over a decade, according to the latest Moody's/RCA Commercial Property Price Indices (CPPI) national all-property composite index. This correlation is also strong in the six metro areas that Moody's designates 'major', although the closeness of .......

    News Round-up 12 January 2015

  • CMBS pay-offs plunge

    The percentage of US CMBS loans paying off on their balloon date plunged in December to 49.6%, according to Trepp. The latest reading is 26 points lower than the November rate of 75.6% and is the lowest reading since July 2012.

    "A downward trend in the rate in 2015 would not be all that surprising," the firm notes. "Most of .......

    News Round-up 12 January 2015

  • SFR methodology clarified

    Moody's has finalised its methodology for rating single-family rental (SFR) securitisations in the US, following a request for comment on its approach to single-borrower and multi-borrower transactions in the sector (SCI 7 March 2014). The report clarifies certain aspects of the RFC.

    "In the RFC, we mentioned that there could be variations if the SFR transaction included more than one .......

    News Round-up 12 January 2015

  • European ABS/MBS stays firm

    Despite a volatile end to the week in broader markets, European ABS/MBS is staying firm into this morning.

    Activity levels across secondary are continuing to edge higher albeit with a little to see on the BWIC schedule for now. The main focus remains on UK and Dutch prime, where spreads have tightened over the last week, as well as UK .......

    SCIWire 12 January 2015

  • Relief at TRIA renewal

    The US Senate voted yesterday to re-authorise the Terrorism Risk Insurance Act (TRIA) for an additional six years, bringing an end to uncertainty in the CMBS market over whether the programme would be renewed. The bill now moves to the White House for final signature before becoming formal law.

    CREFC president and ceo Stephen Renna comments: "This quick action from .......

    News Round-up 9 January 2015

  • Boost for Indian real estate

    KKR has established a non-banking financial company (NBFC) that will provide structured credit solutions to the real estate sector in India, with an investment from Singapore's sovereign wealth fund GIC. The firm has so far structured and participated in three transactions, with an aggregate amount of approximately US$190m.

    KKR says that while many lenders provide debt to the real estate .......

    Job Swaps 9 January 2015

  • Looking for levels

    European ABS/MBS secondary market activity continues to increase slowly but participants are still trying to determine clearing levels, particularly around Greek bonds.

    "Activity continued to pick up a bit yesterday and into today," says one trader. "However, competing factors are at work - expectations over QE and the Greek elections. There is less conviction about direction in the broader space, .......

    SCIWire 9 January 2015

  • CMBS indices unveiled

    Trepp and Markit have launched of a number of CMBS indices that aim to provide independent and transparent performance coverage to CMBS market participants. The offering is designed to leverage the combination of Trepp's CMBS Deal Library and Markit's global index coverage.

    The Markit iBoxx Trepp CMBS index family includes two benchmark indices and a liquid index. The CMBS Benchmark .......

    News Round-up 8 January 2015

  • GCM backs new investment manager

    A new global structured products investment management firm, Hollis Park Partners, has launched with significant investment capital from GCM Grosvenor and other institutional investors. Hollis Park was founded by cio and managing partner Troy Dixon.

    "We believe today's environment presents attractive and rapidly changing opportunities across a wide spectrum of structured products, including agency and non-agency mortgage-backed securities, CLOs, CMBS .......

    Job Swaps 8 January 2015

  • Euro ABS/MBS activity continues to rise

    Trading activity in the European ABS/MBS secondary market is slowly but surely increasing as the week continues.

    "Today looks to be a bit better again," says one trader. "We're seeing more prices and more enquiries, but the market is slow to come back."

    Yesterday's positive tone has continued into this morning on the back of improved macro sentiment. RMBS remains .......

    SCIWire 8 January 2015

  • Decline in delinquency rate continues

    The Trepp US CMBS delinquency rate fell by 5bp in December to 5.75%, down by 168bp from 7.43% in December 2013. CMBS loans that were liquidated with losses totalled almost US$700m last month.

    Removing these previously distressed assets from the numerator of the delinquency calculation helped move the rate down by 13bp. Over US$700m in loans were cured last month, .......

    News Round-up 7 January 2015

  • Servicer acquisition agreed

    Stone Point Capital is set to acquire Situs from Ranieri Partners and WL Ross & Co, subject to regulatory approvals. The transaction is expected to close in 1Q15.

    Situs has over US$100bn of assets under management, with operations in North America, Europe and Asia. The acquisition will provide funding to capitalise on growth opportunities.

    As part of the transaction, Situs .......

    Job Swaps 7 January 2015

  • Agency examines CMBS prospects

    Meaningful growth in the US economy through 2014 bodes well for CRE fundamentals, says Kroll Bond Rating Agency. Improving property fundamentals have fuelled CMBS appetite and the trends of increased leverage and decreased debt service are expected to continue in 2015.

    Total US CMBS issuance for 2014 is expected to fall around US$10bn short of Kroll's initial prediction of US$100bn, .......

    News Round-up 7 January 2015

  • Robust CRE market expected

    Commercial real estate (CRE) lenders see a strong year ahead with ample credit and capital available to meet borrower demand, according to a survey of CREFC members. Loan volumes in 2015 are expected to top those in 2014 as loan maturities rise, property fundamentals improve and investor demand remains strong.

    While 74% of survey respondents expect benchmark interest rates to .......

    News Round-up 7 January 2015

  • CMBS data tool debuts

    Fairview Real Estate Solutions has introduced a new tool designed for CMBS traders and investors. The tool will attempt to provide immediate access to verified loan data, 24/7 analysis and local market intelligence.

    Fairview says its new trader tool expects to complement existing systems such as Bloomberg, Intex and Trepp by delivering an easy-to-use interface that features comprehensive data on .......

    News Round-up 7 January 2015

  • Euro ABS/MBS picks up positively

    Activity in the European ABS/MBS secondary market is finally beginning to pick up with a slightly positive tone emerging today.

    "It's been relatively quiet since the New Year, but it was a little busier yesterday," says one trader. "We've been somewhat insulated from the broader market volatility over the last few days, but ABS spreads have been softer."

    That looks .......

    SCIWire 7 January 2015

  • CMBS delinquencies down

    The delinquent unpaid balance for US CMBS fell to US$30.92bn in November, says Morningstar. This is down 3.5% from the prior month and 25.79% from a year ago.

    Meanwhile, liquidations, at US$775.6m across only 70 loans, experienced an average loss severity of 40.58%. This is significantly lower than the US$1.3bn in liquidations by balance across 83 loans in October, which .......

    News Round-up 24 December 2014

  • Hiring logjam?

    Waiting game leaves recruitment on hold

    Recruitment in the structured finance space remains somewhat stagnant. While market players await regulatory clarity in the US, positive sentiment in Europe is yet to translate into increased hiring activity.

    The European securitisation market has provided a mixture of both disappointment and rational caution in terms of hiring trends, according to one London-based headhunter. "The market may not have picked .......

    News Analysis 24 December 2014

  • CMBS maturity spike expected

    US CMBS loan maturities will spike in 2Q15 following a measured start to the year, says Fitch. The agency notes US$3.7bn of US CMBS loans in Fitch-rated transactions are scheduled to mature in 1Q15, jumping to US$9.7bn in 2Q15 and to US$12bn in each of 3Q15 and 4Q15.

    In addition, US$64.6bn worth of loans in 2016 is expected to mature, .......

    News Round-up 22 December 2014

  • Treveria portfolio acquired

    Sunrise Properties has acquired the Treveria Silo E Portfolio, also known as Project Sunrise. The portfolio includes 127 mainly commercial real-estate (CRE) assets across prime locations in Germany.

    The portfolio was underpinned by the Orange Loan within the Talisman 6 CMBS, which had an unpaid whole loan balance of approximately €380m. BNP Paribas Real Estate valued the portfolio at €394.9m .......

    News Round-up 19 December 2014
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