CMBS

  • Default rate inches lower

    Fitch's quarterly US fixed-rate CMBS cumulative default rate dropped slightly to 13.4%, compared to 13.5% in 2Q14, due to relatively stable defaults and strong new issuance levels. In 3Q14, 77 loans totalling US$1.11bn were newly defaulted - an increase from 68 loans (US$974m) in 2Q14, but down from 93 loans (US$1.13bn) in 3Q13. Twelve loans had an original balance over .......

    News Round-up 3 November 2014

  • Special situations group bolstered

    David Ruiz has joined Deutsche Bank's CRE special situations group as a director, where he will report to the group's head Charles Blackburn. Ruiz was previously a partner at Serone Capital Management, where he focused on diversified investment credit strategies, including distressed credit, structured credit and corporate high yield.

    .......

    Job Swaps 3 November 2014

  • US CMBS looks ahead

    The US CMBS market is seeing a flurry of activity today after a quiet week, but attention is already shifting to next week's big BWIC.

    "It's been a very quiet week, but it's a little busier today with quite a few BWICs coming out," says one trader. "There doesn't seem to be an obvious driver other than perhaps a stronger .......

    SCIWire 31 October 2014

  • Risk retention to have mixed impact

    Risk retention regulations that were approved last week by US federal regulators (SCI 22 October) will be credit positive for non-agency RMBS, according to Moody's. The impact on CLOs, on the other hand, is expected to be credit neutral.

    The rules generally require sponsors to retain 5% of the risk in most types of securitisations for the life of the .......

    News Round-up 31 October 2014

  • Peripherals firmer

    Positive ABSPP news has driven buying of peripheral ABS/MBS, but core paper is mixed.

    Following the ECB announcement of four asset managers and a November start for ABSPP, eligible peripheral ABS/MBS spreads firmed up yesterday and into this morning. Equally, interest and activity around select non-eligible peripheral names has seen them tighten as well.

    In core bonds the picture is more .......

    SCIWire 31 October 2014

  • Legacy CMBS stabilising

    Legacy US CMBS performance continues to stabilise, Fitch notes in its latest CMBS quarterly index. The agency adds that leverage has increased along with new deal volume.

    From 2004 CMBS deals, roughly US$2.3bn in loans issued have been repaid, defeased or were otherwise resolved during 3Q14. As a result, the remaining delinquencies and specially serviced loans as a percentage jumped .......

    News Round-up 31 October 2014

  • Credit quality continues to slip

    US conduit CMBS credit quality declined yet again in Q3, aligning it with that of transactions from the first half of 2006, says Moody's. The agency believes this is a result of one of the largest quarter-to-quarter increases in loan leverage in first- or second-generation US CMBS conduits.

    "The use of aggressive and pro forma underwriting, which presents a property's .......

    News Round-up 30 October 2014

  • Recovery supporting resolutions

    The US economic recovery continues to support a decline in delinquency rates and the share of loans in special servicing, according to Moody's 3Q14 US CMBS and CRE CDO surveillance review. The overall share of specially serviced conduit loans fell to 7.4% in 3Q14 from 7.6% in 2Q14, the eighth consecutive quarterly decline. The share of specially serviced loans has .......

    News Round-up 30 October 2014

  • Sears exposure quantified

    A recent Morgan Stanley analysis identifies over 210 Sears and Kmart stores that have closed or have been identified for closure this year. Of these stores, 32 are encumbered by over US$2bn of CMBS debt. Six of these properties are encumbered by nearly US$800m of debt securitised in seven CMBS 2.0 deals, while the remaining properties are encumbered by over .......

    News Round-up 30 October 2014

  • Smaller loans listed for auction

    Auction.com and RealCapitalMarkets.com have 39 properties believed to back US$219m in distressed US CMBS loans listed for auction in November and December. The size of the loans out for bid is smaller than the US$450m on average per month seen in Q3 and early Q4, according to Barclays Capital CMBS analysts.

    They note that the deal with the most exposure .......

    News Round-up 30 October 2014

  • BWIC seller revealed

    BayernLB has confirmed that it was the seller behind Tuesday's large liquidation, in which it divested its remaining portfolio of legacy ABS instruments. The sale ends the bank's guarantee agreement with the Free State of Bavaria that hedged the portfolio against potential losses.

    BayernLB says it has fulfilled the resulting repayment requirement in full and earlier than planned by paying .......

    News Round-up 30 October 2014

  • Ratings probe settlement sought

    McGraw Hill Financial has disclosed in its 3Q14 results that it recorded a US$60m charge in relation to US SEC and Attorney General investigations with respect to S&P, albeit no definitive settlement agreements have been reached. The firm says that the rating agency is in "active discussions" to resolve matters pending before the SEC, including with respect to the Wells .......

    Job Swaps 30 October 2014

  • European ABS/MBS still in limbo

    The European ABS/MBS markets are continuing to see positive effects following Tuesday's large BWIC, but the market also remains in a pre-ABSPP limbo.

    This morning BayernLB announced that it was behind the big BWIC. However, it confirmed that no details, such as covers, would be released.

    "It's a little difficult to dig out details but it appears the bulk of .......

    SCIWire 30 October 2014

  • Euro rejuvenation

    Yesterday's big list has rejuvenated activity and interest across European securitisation asset classes.

    "We're still waiting on official colour on the big BWIC, but while the market was quiet leading up to the list we've seen trading on the back of it since," says one trader. "Overall, the list has given a much-needed boost to trading and customer interest."

    The .......

    SCIWire 29 October 2014

  • Large loss forecast for Mango

    The €51.75m Mango loan, securitised in the Talisman 6 Finance CMBS, looks set to suffer a loss of over 89% of its outstanding balance. This comes after a sale and purchase agreement was notarised last month to dispose of the last remaining property (Magdeburg) for €5.5m.

    The Mango loan was transferred to special servicing on 28 April 2011 due to .......

    News Round-up 28 October 2014

  • CMBS A4s dominate

    CMBS was the only sector to see much secondary supply yesterday stateside, with many participants focused on the US$4.6bn legacy non-agency RMBS bid-list scheduled to trade today (28 October). BWIC volume reached around US$183m, up from the prior session, and was dominated by A4 securities.

    Among the legacy A4 bonds out for the bid during the session was COMM 2006-C8 .......

    Market Reports 28 October 2014

  • Valuation reporting examined

    In an analysis of US CMBS loans greater than US$2m that became delinquent prior to 2014, Fitch has found that approximately 12% of its sample had stale appraisal values reported by the special servicer, compared to 10% this time last year. As of June, there were 2,541 loans in special servicing with an outstanding balance of US$42.3bn, according to the .......

    News Round-up 28 October 2014

  • QRM provides 'meaningful incentives'

    The final QRM standards provide meaningful incentives for banks to maintain quality underwriting and avoid certain riskier mortgage products, Fitch says. The agency believes that the rule should curb many practices that led to severe bank pressures during and after the financial crisis.

    Nevertheless, the final QRM avoids minimum down payment standards originally proposed by regulators in 2011, thus providing .......

    News Round-up 27 October 2014

  • Large list to dominate

    Tuesday's large liquidation BWIC is set to dominate traders' attention across asset classes either side of the Atlantic in the short-term. Longer term the picture is less clear.

    The previously mentioned list, possibly from a Scandinavian bad bank, amounts to 647 lines and just under 7.5bn of current face when US assets and CDOs/CLOs are included. "This type of legacy .......

    SCIWire 24 October 2014

  • CMBS offering strengthened

    Hunt Mortgage Group has opened a commercial mortgage financing office in Cleveland, Ohio. Daniel Eibler has been hired as a director to lead the effort and to expand the firm's product offering locally and throughout the US Midwest.

    In addition to Fannie Mae DUS, Freddie Mac, FHA and bridge loans, Eibler will concentrate on CMBS and other loan vehicles beyond .......

    Job Swaps 24 October 2014

  • Euro ABS/MBS stay steady

    European ABS/MBS spreads held steady yesterday albeit in relatively quiet markets. More of the same is expected today, but all eyes are on a large liquidation BWIC on Tuesday.

    Currently buyers just edge it over sellers in both core and peripheral ABS/MBS bonds across secondary, with UK RMBS and Italian names seeing the most interest. However, there has been less .......

    SCIWire 24 October 2014
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