CMBS

  • US CMBS returns

    After an extended summer lull the US CMBS market at last appears to be on its way back to full functionality.

    BWIC volume exceeded $300m yesterday and Wednesday for the first time since summer began. However, generic spreads remain primarily unchanged, excepting some legacy AMs and double-As, albeit inside the wides of mid-summer.

    Over the next few weeks secondary supply .......

    SCIWire 12 September 2014

  • Healthcare tops severity rankings

    Healthcare edged out all other property types as the worst-performer in 2Q14, according to Moody's latest quarterly US CMBS loss severities update. The 57.4% weighted average loss severity for loans backed by healthcare properties included the 105% loss severity on the Senior Living Properties Portfolio, which liquidated with a US$117.7m loss to the GMACC 1998-C1 transaction (see SCI's CMBS loan .......

    News Round-up 12 September 2014

  • Further Sanchez sales inked

    CR Investment Management has sold a further ten properties located across Germany from the Sanchez Portfolio, resulting in approximately €55m of sales proceeds. Many of the properties are located in non-prime locations and had a number of technical complexities associated with them, such as fire protection issues, 100% vacancy and part-ownership structures.

    The Sanchez Portfolio originally consisted of 107 properties .......

    News Round-up 12 September 2014

  • European CMBS picks up

    Activity has picked up in the European CMBS secondary market over the past few days with decent two-way flows at the top end and now a few BWICs are beginning to appear.

    "First pays are trading fairly well," confirms one trader. "But it's more challenging with the distressed stuff - sellers want higher prices in this market environment, but with most .......

    SCIWire 11 September 2014

  • Euro ABS/MBS softer

    European ABS and RMBS markets opened softer this morning following the direction seen into the close last night and, in turn, broader credit trends. CMBS spreads are still unchanged, but the tights seen over the past week look set to be tested in all three deal sectors over the next two days as BWIC supply is on the increase and .......

    SCIWire 10 September 2014

  • ABS strategies outperform

    Hedge funds returned an average of 1.4% in August, with average gross market exposure across the industry lower in the month than any point in the last two years, according to eVestment. Credit strategies posted their second consecutive negative month in August, declining by 0.03%, for the first time since the height of the European sovereign debt crisis in 2011.

    News Round-up 10 September 2014

  • Caution ahead?

    Intermediate direction of US CMBS spreads unclear

    US CMBS credit metrics continue to slip, but are seemingly yet to give investors pause. Nevertheless, while the positive reception for WFRBS 2014-C22 this week marks a departure from recent pricing weakness in the sector, caution remains regarding the intermediate direction of new issue spreads.

    The US$1.5bn WFRBS 2014-C22's triple-A rated class A5, single-A plus class C and triple-B minus .......

    News Analysis 10 September 2014

  • Hope note recoveries examined

    As the use of hope note CMBS modification wanes in the US, more information is becoming available on their performance in a liquidation. Although many hope notes have posted 100% loss severities, some have seen meaningful recoveries.

    Based on a recent Barclays Capital study, B-notes on smaller balance loans and multifamily-backed loans, as well as thinner B-notes and those with .......

    News 9 September 2014

  • Weaker bounce for CMBS

    The European CMBS market remains fairly quiet, despite the better than expected announcement from the ECB yesterday (SCI 5 September). However, prices have been creeping up since last week and further moves are expected.

    "CMBS has not been very active over August but we started to see a little more last week. Prices have moved up but there has not .......

    Market Reports 5 September 2014

  • CMBS pay-off rate drops

    The percentage of US CMBS loans paying off on their balloon date sank sharply in August to 59.3%, the lowest reading since June 2013, according to Trepp. The 12-month moving pay-off average is 70.2%.

    Trepp suggests that the lower August reading - and the lower trend over the last few months - may reflect the fact that many borrowers have .......

    News Round-up 5 September 2014

  • Reg AB 2 to increase data integrity

    Moody's says that the US SEC's adoption of Regulation AB 2 will enhance transparency in publicly offered ABS, which is credit positive for RMBS and auto ABS but credit neutral for CMBS. Overall the agency expects the requirement for loan-level data to result in more scrutiny by sponsors, thereby increasing data integrity.

    Third-party diligence firms currently review key loan-level data .......

    News Round-up 4 September 2014

  • CMBS delinquencies inch up

    The US CMBS delinquency rate stands at 6.10%, 6bp above July's reading, according to Trepp. August's rate is 228bp lower than the year-ago level, however. Year-to-date, delinquencies have fallen by 133bp from 7.43%, as of 31 December 2013.

    The largest newly delinquent loan is the US$240m Westfield Centro Portfolio, securitised in JPMCC 2006-LDP7. This note alone put almost 5bp of .......

    News Round-up 4 September 2014

  • Reimbursements due on Solana liquidation

    Blackstone has reportedly purchased Solana Business Park - which secured a US$360m loan securitised in JPMCC 2007-LDPX (US$140m) and BACM 2007-1 (US$220m) - for US$180m. The liquidation is expected to result in interest shortfall reimbursements and a write-down reimbursement for the former transaction.

    Morgan Stanley CMBS strategists anticipate a 66% loss severity on the loan, resulting in significant losses to .......

    News Round-up 4 September 2014

  • CMBS secondary activity climbs

    US CMBS secondary market activity picked up yesterday, with BWIC volume more than doubling to over US$80m. CMBS 2.0 and 3.0 junior triple-As tightened a little, but otherwise spreads were generally unchanged.

    SCI's PriceABS data recorded several covers from the session, such as the COMM 2006-C8 AM tranche which was talked in the 80 area and .......

    Market Reports 4 September 2014

  • Real estate group adds multifamily pro

    Greystone Bassuk Group has added Jeffrey Levien in New York. He becomes an md and will assist in the development of creative structured finance products for owners and developers of multifamily assets, reporting to Richard Bassuk.

    Levien has more than 20 years of real estate experience. He was previously a partner at Street-Works Development and co-founded Scott-Lawrence Realty & Development. .......

    Job Swaps 4 September 2014

  • US BWIC activity picks up

    As the US BWIC markets got back up and running yesterday most activity was concentrated in ABS, but supply was also seen in the CMBS and non-agency RMBS segments.

    Bid-list volume for US ABS reached over $250m yesterday, with credit card bonds providing the majority of the paper. In addition, some auto paper was circulating during the session.

    Meanwhile, generic .......

    SCIWire 3 September 2014

  • Sunrise II/Treveria II disposals progressing

    CR Investment Management has sold three properties backing the Sunrise II/Treveria II loan, securitised in the EMC 6 and DECO 2006-E4 CMBS. All retail assets, the properties are located across Germany in Duderstadt, Kempten and Ranstadt.

    The Duderstadt property comprises four freehold retail units with an occupancy rate of 95%, while the Kempten property is a department store with a .......

    News Round-up 3 September 2014

  • Weakening credit metrics eyed

    Competition among originators in the US conduit CMBS market has continued to weaken loan credit metrics in the past few months, S&P says. The most recently priced deals have seen a higher percentage of loans with an interest-only (IO) component and a growing share of lodging collateral, both signs of increased future credit risk, according to the agency.

    S&P has .......

    News Round-up 3 September 2014

  • SFR maturity risk underestimated?

    Elevated cashflow leverage, refinance risk and dependence on property liquidation for debt repayment remain key reasons for a single-A rating cap on single-borrower single-family rental securitisations, according to Fitch. The agency believes that the justification in presale reports for recent SFR transactions of elevated leverage with current property values and the likelihood of repayment through the foreclosure and sale of .......

    News Round-up 3 September 2014

  • Loss severities drop

    Aggregate loss severity for US CMBS loans dropped significantly in August from July's record high, according to Trepp. The move is despite large losses on the US$116m Bethany Roll-up Portfolio and US$68.7m SilverCreek Portfolio Phase I loans (see SCI's CMBS loan events database).

    The average loss severity came in at 37.56% in August, down from July's 60.80%. Liquidated .......

    News Round-up 3 September 2014

  • US secondary activity picks up

    The US secondary markets were back up and running yesterday after the Labor Day holiday. Most activity was concentrated in ABS, but supply was also seen in the CMBS and non-agency RMBS segments.

    Bid-list volume for US ABS reached over US$250m yesterday, with credit card bonds providing the majority of the paper. A number of names were captured by SCI's .......

    Market Reports 3 September 2014
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