CMBS

  • European CMBS picks up

    Activity in the European CMBS secondary market is picking up albeit from relatively low levels.

    With little primary issuance and low BWIC volumes in recent days European secondary market trading has been focused on bilateral trading. There, there has been healthy activity, with interest chiefly focused round Italian and UK paper, which has held spreads tight.

    Such activity combined with .......

    SCIWire 10 October 2014

  • RFC issued on CMBS enhancements

    Moody's is requesting feedback on proposed enhancements to its approach to rating North American conduit/fusion CMBS. The enhancements are based in part on an analysis of historic CMBS loan and transaction performance and aim to help Moody's further differentiate credit quality among transactions.

    If implemented, the changes are expected to have an impact on less than 1% of the ratings .......

    News Round-up 10 October 2014

  • Small multifamily loan programme launched

    Freddie Mac Multifamily has unveiled a new initiative to purchase and securitise small multifamily loans of US$1m-US$5m and with at least five apartment units. The initiative is the company's newest effort to support affordable rental housing and provide the underserved small rental property borrower with access to long-term debt capital.

    "We believe our initiative will increase liquidity in the small .......

    News Round-up 10 October 2014

  • CMBS opportunities sought

    US CMBS investors are seeking out fresh secondary market opportunities as the sector's BWIC machine rumbles on.

    US CMBS BWICs are continuing to trade strongly albeit at a slightly lower volume than earlier in the week - the $400m out for bid seen on Tuesday, for example. By late this morning around $264m was scheduled for auction throughout the day.

    SCIWire 9 October 2014

  • CMBS supply stays steady

    US CMBS BWIC volume climbed a little yesterday to just over US$320m. CMBS 2.0 and 3.0 double-As widened slightly, with other levels remaining largely unchanged. Vintages on offer ranged from 2002 to 2013.

    SCI's PriceABS data captured a lot of price talk for the session, as well as successful covers. One tranche to be covered was also from .......

    Market Reports 9 October 2014

  • Areas for improvement remain

    There are many favourable aspects to the general health of the US CMBS sector, but some areas could still be improved, Fitch says. This is according to its US CMBS progress report, the first in a series that the agency plans to publish globally, discussing significant changes a sector has undergone since the financial crisis.

    Underwriting declines have been in .......

    News Round-up 8 October 2014

  • Sears exposure tallied

    Morningstar estimates that about US$373.3m in loans across nine US CMBS could potentially be affected by Sears' most recently announced store closures. The effect on more recent CMBS deals is expected to be minimal, but three malls backing pre-2010 loans will face increased default risk, as these loans are already on the Morningstar watchlist for performance issues.

    Sears is closing .......

    News Round-up 8 October 2014

  • Agency vet joins originator

    American Financial Resources has hired Timothy Yanoti as president and appointed him as a board member. He will assist with the mortgage originator's overall strategy, strategic partnerships and regulatory oversight.

    Yanoti was previously at Fannie Mae, where he was head of securitisation and worked on the common securitisation platform. He has also served as head of global securitisation for GE .......

    Job Swaps 8 October 2014

  • Downgrades expected on sovereign update

    S&P has updated its methodology for rating single-jurisdiction securitisation tranches above the underlying sovereign rating, following a year-long consultation process (SCI 15 October 2013). The main change from the previous criteria is the reduction of the maximum rating differential between securitisations and sovereign to four notches from six notches, unless the tranches meet certain conditions based on structural features and .......

    News Round-up 7 October 2014

  • Call to revisit PACE provisions

    US CMBS loan documents currently do not have explicit prohibitions barring borrowers from taking out property-assessed clean energy (PACE) loans without the lender's prior consent. Moody's suggests that this could negatively affect the credit profile of the property, given the risks posed by PACE loans.

    "PACE loans can materially increase a loan's leverage and risk profile," says Moody's svp Daniel .......

    News Round-up 7 October 2014

  • Portuguese RMBS flash BWIC circulating

    A BWIC of €12.5m of Portuguese RMBS ATLAM 2 A has begun circulating for trade at 17:00 London today. The bond hasn't traded on PriceABS before and price talk is yet to be seen for this auction.

    Elsewhere, aside from some patchy bilateral trading the European markets have stayed quiet today, as is the case with US ABS, CMBS and .......

    SCIWire 6 October 2014

  • Servicer workloads increasing

    The workload of European CMBS servicers has increased significantly so far in 2014, with around half of the loans maturing in 2013 and 2014 still awaiting resolution, according to Fitch's latest EMEA commercial mortgage market index report. Although the number of loans being watchlisted has begun to slow down, the agency expects that most loans will require special servicer intervention .......

    News Round-up 6 October 2014

  • Euro ABS settles down

    European ABS and MBS secondary markets have started to settle down this morning after the heightened activity seen last week.

    "It's been quiet this morning - we've only done a few trades," says one trader. "It looks like following on from the price movements around the ECB last week the market is settling down and looking through every detail of .......

    SCIWire 6 October 2014

  • Peripherals trade strongly

    The majority of both peripheral BWIC lists today traded at or above talk and covers were high on two bonds that DNT.

    Three of the bonds traded with prices on the 13:30 €40m list, covering as follows: AEOLO 1 A at 94.46, GRIF 1 A at 90.02 and TDAC 1 B at 94.55. CORDR 2 C was just reported to .......

    SCIWire 3 October 2014

  • RMBS seniors up after ECB update

    The market has reacted cautiously to yesterday's ABSPP update from the ECB. Peripheral RMBS has been most active, although the CMBS market is quiet.

    "Most of the activity over the last 24 hours or so has been in Spanish and Italian RMBS. Really people are looking to get whatever Spanish and Italian paper they can, but mainly that has been .......

    Market Reports 3 October 2014

  • Liquidations drive losses higher

    Average US CMBS loss severity measured 55.69% in September, up from 37.56% in August, according to Trepp. Loss severity was almost seven percentage points higher than the 48.83% 12-month moving average and 11 points above the 44.27% average since January 2010.

    Liquidated loan volume was almost double August's US$994m and triple July's lull of US$605.47m. Of the loans that were .......

    News Round-up 3 October 2014

  • Colony IV returns to special servicing

    Fitch reports that the modified US$56.8m Colony IV A-note (securitised in JPMCC 2006-LDP9) has been transferred to special servicing, but Barclays Capital CMBS analysts believe the entire US$144m Colony IV portfolio has been moved into special servicing, based on cross-default and modification terms. Together with the A-note, the portfolio comprises a US$37.5m B-note and US$49.8m C-note, which modified in 2012 .......

    News Round-up 3 October 2014

  • Post-ECB peripheral test

    Yesterday saw spread volatility across peripheral secondary markets surrounding the ECB meeting, but two BWICs circulating today will provide a clearer test of investor demand after the ABSPP announcement.

    Peripheral ABS spreads compressed across the board in the run up to the ECB meeting, but afterwards there were diverse intra-market, -country and even -deal moves leaving Spanish seniors the winners .......

    SCIWire 3 October 2014

  • SF impairments hit post-crisis low

    The global structured finance 2013 new impairment count declined to 1,138 from 2,189 in 2012, according to Moody's. This marks the lowest number of new impairments observed since 2007.

    Moody's findings are based on ratings, impairment and loss information for over 72,000 global structured finance tranches from roughly 11,500 deals. "The performance of structured finance securities, as measured by impairment .......

    News Round-up 2 October 2014

  • Repeat loan trends examined

    DBRS has identified a sample of approximately 3,700 US CMBS properties that were collateral for loans that have been securitised in multiple transactions over the past 20 years. Based on the data available from these repeat loans, the agency compared leverage trends and other financial metrics for CMBS loans through time.

    Broadly the results show that since the near collapse .......

    News Round-up 2 October 2014

  • CMBS delinquency rate slides

    The Trepp US CMBS delinquency rate fell by 7bp in September to 6.03% and is now 211bp lower than the year-ago level. Year-to-date delinquencies have fallen by 140bp from 7.43%, as of 31 December 2013.

    Loans that became delinquent totalled almost US$1.4bn in September, putting 26bp of upward pressure on the delinquency rate. The largest loan that became delinquent during .......

    News Round-up 2 October 2014
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