CMBS

  • Japanese market outlook 'positive'

    Strong credit quality and good collateral performance will remain features of Japanese securitisation markets in 2015, despite the contraction in the country's GDP, says Moody's. Performance will be underpinned by ongoing strict underwriting standards and supportive labour market conditions.

    Default rates for consumer ABS are expected to be stable at low levels, owing to already low unemployment and government policies .......

    News Round-up 27 November 2014

  • REIT promotes risk md

    Robert Rush has taken the role of chief risk officer at Two Harbors Investment Corp. Paul Richardson, who has served in that role over the past several years, will remain in his role as partner and chief risk officer for Pine River Capital Management, the parent of the company's external manager.

    Rush has served as Two Harbors' md for risk .......

    Job Swaps 27 November 2014

  • Paper trades ahead of Thanksgiving

    The US secondary markets have not shut down just yet, with SCI's PriceABS data picking up price talk and cover prices for US ABS, CLOs, CMBS and RMBS yesterday. In ABS there was more than US$100m out for the bid on BWICs, with supply divided between autos, credit card, equipment and student loan ABS.

    Each of .......

    Market Reports 26 November 2014

  • Still no big ABSPP trades

    European ABS/MBS spreads are holding firm as the market continues to wait on significant ECB buying.

    "Spreads are staying stable as the market continues to expect the ECB to start buying in size, but every day seems to bring with it another day's delay," says one trader. "They bought some Arena in the primary market yesterday, but we haven't seen .......

    SCIWire 25 November 2014

  • New broom

    Mount Street managing partner and ceo Ravi Joseph and director Jonathan Banks answer SCI's questions

    Q: How and when did Mount Street become involved in the securitisation market?
    RJ: Mount Street is an amalgam of a couple of different businesses. We began taking on servicing assignments about two years ago and this business has grown quickly around the emergence of non-bank lenders, most of whom choose to outsource their servicing requirements.

    We then acquired the Frankfurt .......

    Provider Profile 24 November 2014

  • Transferred loan sizes increasing

    While the dollar volume of US CMBS loans transferring into special servicing has remained stable year-over-year, loan sizes are increasing, according to Fitch. Approximately US$6.8bn transferred into special servicing in the Fitch-rated universe through October 2014, consistent with year-to-date October 2013. However, by count 2014 had less transfers at 441 loans compared to 573 in 2013.

    The average loan size .......

    News Round-up 24 November 2014

  • European CMBS sees selective trading

    After the flurry of BWICs in the first half of last week the European CMBS market has quietened down. However, there is still selective activity off-BWIC.

    "It's very quiet overall, particularly today," says one trader. "But we're seeing renewed interest from end-accounts in putting on trades in the CMBS space that are attractive from a yield perspective versus what can .......

    SCIWire 24 November 2014

  • Euro ABS/MBS wants more

    The ECB began ABSPP buying on Friday, but the European ABS/MBS market is still waiting for more action.

    "The ECB bought some Dutch RMBS on Friday, but thus far there's been no follow up trading," says one trader. "No volume has yet been reported on the Dutch RMBS purchases, but our sense is they weren't huge, so the market is .......

    SCIWire 24 November 2014

  • Sears closures hit loss severity

    Sears Holdings is set to close over 100 underperforming Sears and Kmart stores in the US - on top of more than 100 that were shut during 1H14 - after a net loss attributable to shareholders of US$573m for 2Q14. Of the 107 store closure announcements since late August, Trepp has identified loans in CMBS deals on about a fourth .......

    News Round-up 21 November 2014

  • US CMBS resurgent

    The US non-agency CMBS market is seeing a resurgence in activity this week.

    "Last week was very quiet, but this week we're seeing plenty of activity in both the primary and secondary market," says one trader. "BWIC volume is strong, so there's definitely an element of people taking money off the table. We've $300m out for bid already scheduled for .......

    SCIWire 20 November 2014

  • CRE initiative established

    Pine River Capital Management has hired Jack Taylor to serve as global head of CRE. The company has also added Stephen Alpart and Steven Plust to each serve as mds.

    Taylor was previously md and head of the global real estate finance business for Prudential Real Estate Investors. He was also a member of the global management committee and chaired .......

    Job Swaps 20 November 2014

  • Euro ABS/MBS holds steady

    Despite the lack of news about ABSPP, the European ABS/MBS markets have held steady.

    "Spreads are holding firm this morning," says one trader. "We're seeing the Street trading some eligible paper, a few asset managers are starting to show bonds and there are a number of BWICs today, but it's really just a waiting game for the ECB."

    He continues: .......

    SCIWire 20 November 2014

  • IO loans underperforming

    Partial interest-only loans represented 41% of US CMBS 2.0 conduit loans through 3Q14, up from 20.1% at end-2012, according to Fitch. Full interest-only loans represented 18.6% of conduit loans, up from 13% at end-2012.

    The agency notes that interest-only loans demonstrated noticeably higher default, severity and loss rates than amortising loans. This relationship held true even when controlled for vintages: .......

    News Round-up 20 November 2014

  • Eclectic list fails to trade again

    A large proportion of the re-issued large eclectic BWIC of European assets from a bad bank (SCIWire passim) has failed to trade.

    The 37 line €276.502m auction was due at 14:00 London time today. However, 29 lines did not trade, including all of the SME CLOs on the list and all bar one of the CDOs.

    The bonds that did .......

    SCIWire 19 November 2014

  • AQR spur

    Stress-test boost for non-core asset disposals

    European CRE loan sales are set to rise steadily in light of the ECB's recent asset quality review (AQR) and stress tests, with a fair portion likely to be securitised. Italy is expected to become the next jurisdiction to enter the fray, with non-core asset disposal rates catching up with more established markets.

    Federico Montero, head of loan portfolio transactions .......

    News Analysis 19 November 2014

  • Strong forecast for Asia

    Credit quality across the Asian securitisation and covered bond markets will remain strong overall in 2015, says Moody's. This is due to relatively healthy economic growth levels and falling corporate default rates in the region.

    Chinese auto loan ABS default and delinquency rates are expected to rise from 7.3% in 2014 to 7% in 2015, due to projected slower GDP .......

    News Round-up 19 November 2014

  • Losses to rise on A/B mods?

    Overall loss severities on US CMBS A/B loan modifications liquidated to date have been low. However, this trend may change for many highly leveraged loans utilising this strategy, according to Fitch.

    Special servicers have argued that A/B note modifications allow for improved performance and value, which can help reduce losses to the trust. However, some investors suggest the hope note .......

    News Round-up 19 November 2014

  • Greystone adds in CMBS

    Gregory Krafcik has joined Greystone as md, based in Atlanta and reporting to Robert Russell, head of production for the firm's CMBS Group. Krafcik will focus on originating new loans and establishing a stronger CMBS presence for Greystone in the Southeastern US.

    He arrives from Prudential Mortgage Capital Company, where he led the Southeast commercial mortgage originations team across the .......

    Job Swaps 19 November 2014

  • Euro ABS/MBS BWIC focused ahead of the ECB

    A healthy supply of BWICs is focusing the European markets' attention today, but the expected ABSPP announcement will inevitably cause some distraction.

    "The tone is generally positive this morning across secondary markets, but it's going to be mainly a BWIC day today," says one trader. "There are quite a few auctions attracting everyone's attention, but this afternoon's big eclectic list .......

    SCIWire 19 November 2014

  • CMBS maturities present challenges

    Over the next three years, more than US$300bn in conduit CMBS loan balance will mature, which is more than two and half times the amount that matured from 2012 to 2014. Office and retail loans make up 63% of the loan balance maturing in the next three years with multifamily accounting for 14%.

    Trepp believes that with 2014 issuance set .......

    News Round-up 18 November 2014

  • Large lists lift Euro CMBS

    European CMBS secondary supply is being boosted by sizeable bid-lists, with paper trading today and set to trade tomorrow as well. A degree of weakness seems to have set in, with enhanced supply likely to exacerbate that.

    "There is hardly any client activity and right now it feels pretty weak, but the BWICs keep coming in decent size. Some of .......

    Market Reports 18 November 2014
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