CMBS

  • 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

  • Lack of TRIPRA sparks CMBS worry

    The failure of the US Congress to renew government-sponsored terrorism reinsurance could have repercussions for commercial real estate (CRE) in 2015, according to Fitch. The Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) is slated to expire at the end of this year.

    TRIPRA is an important component of the CMBS market and has become common in many transactions. If it is not .......

    News Round-up 19 December 2014

  • Economy spurs CMBS on

    The macro economy and low interest rates contributed to continued growth in the commercial real estate (CRE) and securitisation markets this year, according to Kroll Bond Rating Agency. Property fundamentals for most CRE segments improved, fuelling the appetite for CMBS investment.

    The agency notes that credit standards continued to ease as demand increased, with competition between loan originators progressing throughout .......

    News Round-up 19 December 2014

  • CMBS origination metrics deteriorate

    Differences among US CMBS originators are continuing to emerge in recent months as IO loans proliferate and leverage metrics deteriorate, according to Fitch. In addition, collateral mix and loan quality continue to show declines.

    The agency's latest sample analysis of CMBS conduit loans shows a 42.4% increase in partial IO loans, while originators are also increasing leverage. Fitch says the .......

    News Round-up 19 December 2014

  • Euro ABS/MBS close to shut down for the year

    The European ABS/MBS secondary market has all but shut down for year-end as from today.

    "This look like it's pretty much it for the year," says one trader. "Spreads haven't moved this morning, but that's theoretical anyway as there has been no visible trading."

    A few very small clips in recently popular names are understood to have changed hands, but .......

    SCIWire 18 December 2014

  • Stable outlook for APAC

    Fitch expects the ratings and asset sector performance of Asia-Pacific structured finance (SF) transactions to remain stable over the course of 2015. Most public long-term ratings for the sector are likely to remain at their current level throughout next year, largely similar to the situation in 2014. Of the 12 outlooks that were not stable at end-3Q14, six were positive .......

    News Round-up 17 December 2014

  • US CMBS keeps calm

    Healthy BWIC volumes in US non-agency CMBS are continuing into this week and appear to be driven by year-end activity rather than macro volatility.

    "For the most part the selling we're seeing is from money managers and it's high quality assets, which suggests re-balancing rather than forced selling," says one trader. "We have seen some hedge funds selling a little .......

    SCIWire 16 December 2014

  • CMBX.8 credit quality examined

    Markit has released a preliminary list of constituents for the CMBX.8 index. The sub-indices for CMBX.8 comprise AAA, AS, AA, A, BBB- and BB, each of which will reference 25 bonds from the same 25 most recently issued conduit CMBS that meet inclusion criteria.

    Bank of America Merrill Lynch CMBS strategists note that it makes most sense to analyse the .......

    News Round-up 16 December 2014

  • Euro secondary slows further

    European secondary markets are getting ever closer to a Christmas standstill.

    "It's definitely slowed right down today," says one trader. "There's nothing going on in the Street and no real client activity - there are a couple of BWICs due today, but that's it."

    Spreads have largely stayed steady. However, the trader notes: "On the few BWICs we've seen of .......

    SCIWire 16 December 2014

  • ABSPP volume drops again

    The ECB has announced its latest total settled ABSPP volume as €788m .

    Last week's drop in volume to only €187m is likely to increase traders' complaints over the pace of ABS purchasing by the central bank. However, some market participants remain less surprised at ECB activity levels given the internal approval difficulties that ABS purchases present, as well as .......

    SCIWire 15 December 2014

  • Euro CRE activity strong

    Increased activity in the CRE lending and investment markets is positive for European CMBS, says Moody's. Strong investment activity in Europe - up by 24% year on year to 3Q14 - has supported the workout of defaulted loans, with high investment levels reflecting the relative attractiveness of the CRE markets for investors seeking higher yields.

    "We expect an overall stable .......

    News Round-up 15 December 2014

  • Liquidations drive loss severities up

    The weighted average loss severity for US CMBS loans liquidated at a loss rose to 42.6% in 3Q14 from 42.1% in 2Q14, according to Moody's. This was driven by two new loans that were liquidated at high losses.

    The World Market Center II loan liquidated with a US$235.8m loss, for a loss severity of 71.8%, while the Solana loan liquidated .......

    News Round-up 15 December 2014

  • Resolutions outpace delinquencies

    The US CMBS delinquency rate declined for a fourth straight month as it edges closer to the 4.5% mark, according to Fitch's latest index results for the sector. CMBS delinquencies fell by 6bp in November to 4.64% from 4.70% a month earlier. November resolutions of US$539m outpaced new delinquencies of US$384m, while Fitch-rated new issuance volume of US$4.5bn edged out .......

    News Round-up 15 December 2014

  • European secondary continues to wind down

    The European ABS, MBS and CLO markets look set for another quiet day today.

    "The markets are coasting as people check out for year end," says one trader. "That combined with continued frustration over the lack of speed of ECB purchases makes for a very quiet market - there are only a couple of BWICs in ABS and CLOs today .......

    SCIWire 12 December 2014

  • Enhanced CMBS approach finalised

    Moody's has finalised an enhanced approach to rating North American conduit/fusion CMBS, which further differentiates credit quality among transactions (SCI 10 October). The agency has also unveiled its approach to sustainable net cashflow and value for CMBS and CRE CDO collateral in the Americas and Asia.

    Moody's says the methodologies complement each other, with the conduit/fusion methodology detailing its approach .......

    News Round-up 11 December 2014

  • Euro ratings outlook positive

    Fitch says that its rating outlook for European structured finance (SF) transactions is stable, with 86% of its rating outlooks across the region being stable or positive. Performance in the large majority of asset market sectors across the region also has a stable outlook.

    Fitch's expectations for stability for both SF ratings and the underlying asset markets have improved substantially .......

    News Round-up 11 December 2014

  • European ABS/MBS patchy

    European ABS/MBS secondary continues to see patchy trading as year-end and broader macro concerns reduce risk appetite.

    Major UK and European names continue to see two-way interest, but elsewhere bids are weaker. Even Italian RMBS is generally quiet despite the talk of ABSPP buying in the sector.

    Meanwhile, the highlight of the BWIC schedule today is a four line €119.5m .......

    SCIWire 11 December 2014

  • Underwriting slippage to continue

    Weaker US CMBS underwriting standards will cause the credit quality of new loans to slip in 2015, according to Moody's. However, loan quality should remain above its pre-crisis peak.

    "Issuers have loosened underwriting standards as the recovery in the commercial property markets has advanced, increasingly securitising loan pools of poorer credit quality with higher credit enhancement," says Tad Philipp, director .......

    News Round-up 10 December 2014

  • Dutch prime outperforms

    The European ABS/MBS markets are remaining quiet with Dutch prime the only highlight.

    "Client activity is close to zero and that may be it for the year," says one trader. "There are a few sellers here and there and consequently some BWICs, but volumes and liquidity are quite low."

    Except for ECB-eligible assets prices are weaker across deal types, with .......

    SCIWire 10 December 2014

  • RFC issued on CRE loan approach

    Moody's is seeking feedback on a proposed approach for rating CRE loans that are not part of a securitisation structure in EMEA. Under the proposal, the rating agency will apply in the CRE loan analysis the same approach as applied for loans securitised in EMEA CMBS transactions.

    In addition, Moody's will consider in its rating analysis the differences between CRE .......

    News Round-up 9 December 2014

  • CMBX ratings eligibility broadened

    A rules change regarding the eligibility requirement for Markit CMBX reference obligations has been approved. The new language changes the applicable rating definition to only require ratings from at least two of Fitch, Moody's, S&P, DBRS, Kroll or Morningstar.

    The prior language stipulated that a bond must have a Fitch, Moody's or S&P rating. Bank of America Merrill Lynch CMBS .......

    News Round-up 9 December 2014
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