CMBS

  • 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

  • Mixed day so far

    The US structured finance markets are taking a while to find their feet today while off-BWIC Europe appears to be building up a head of steam - strong trading is continuing in European RMBS now including non-peripheral bonds.

    On the BWIC front, both sides of the Atlantic aren't seeing many new lists circulating. The CLO market has not so far .......

    SCIWire 2 September 2014

  • Euro markets hit re-set

    The European ABS market appears to have hit the re-set button this morning to signal the true end of summer with the return of the US today and in anticipation of the ECB meeting on Thursday - most ABS sectors are better bid but peripherals are once more leading the way.

    Meanwhile, a €5m slice of Dutch CMBS MESDG DELT .......

    SCIWire 2 September 2014

  • LEMES 2006-1 refinancing underway

    IEF Capital, the sponsor of the €1.05bn Dutch CMBS transaction Leo-Mesdag, has completed the first refinancing under the restructuring terms agreed with noteholders in June (see SCI's CMBS loan events database). The amount refinanced is €218.6m, which exceeds the €200m target amount.

    Berlin Hyp and Helaba reportedly provided €197.8m for a term of eight years to finance 18 .......

    News 1 September 2014

  • Patchy activity in Euro MBS

    The summer lull in European MBS secondary markets looks set to continue this week. However, pockets of activity remain.

    Notwithstanding a month-end flurry that saw three RMBS BWIC lists circulating last Friday, European RMBS and CMBS bonds are expected to carry on trading sporadically for now. "Investors will largely stay sitting on the sidelines because there's not enough juice in .......

    SCIWire 1 September 2014

  • Mixed CMBS supply seen

    At around US$72m, US CMBS BWIC volume remained light yesterday ahead of the Labor Day holiday, although up from the previous session. A mixed bag of bonds across a variety of vintages was out for the bid.

    The vintage appearing most often in SCI's PriceABS data for the session was 2006. For example, CD 2006-CD3 AM was talked .......

    Market Reports 29 August 2014

  • Japanese, US CMBS enforcement weighed

    Japanese CMBS enforcement mechanisms (EMs) are weaker when compared with US CMBS in instances where representations and warranties (R&Ws) are breached, Moody's says in its latest Structured Thinking: Asia Pacific publication. While R&W conditions in Japanese and US CMBS transactions are similar, there is greater variation between deals in Japan, partly because the US CMBS industry has adopted standardised R&Ws.

    News Round-up 28 August 2014

  • Acropolis Gardens liquidation scrutinised

    The liquidation last month of the US$19.5m Acropolis Gardens Realty Corp loan, securitised in WFRBS 2013-C15, is being seen as an unwelcome precedent for the CMBS market. The loan was resolved with a 1.3% loss, while repaying US$1.5m of prepayment penalties to the XA tranche - about half of the US$3.2m yield maintenance penalty due, according to Barclays Capital CMBS .......

    News Round-up 28 August 2014

  • Staples exposure 'fairly limited'

    Staples confirmed in its 2Q14 earnings results that it expects to close approximately 140 stores in North America this year, 80 of which have already been closed during the second quarter. An official list of the affected properties has not been published, but Bank of America Merrill Lynch CMBS analysts have identified 83 Staples stores that have been or will .......

    News Round-up 27 August 2014

  • SFR securitisations surveyed

    Five firms have so far completed eight transactions for US$4.4bn in the single-family rental (SFR) securitisation market's first year. Growth in the sector is slowing, however, as the stock of distressed properties lessens and foreclosure timelines in judicial states lengthen.

    Deutsche Bank ABS strategists note that the eight SFR deals issued so far have structurally been quite similar, with a .......

    News 27 August 2014

  • Minimal impact from Napa earthquake

    Barclays Capital CMBS analysts estimate that US$620m of US CMBS loan allocated balance is located around Sunday's earthquake zone, just south of Napa, California. The area has a high concentration of hotel and retail properties due to its popularity as a tourist destination.

    Significant damage was reported to several buildings and homes in and around the Napa area, following the .......

    News Round-up 26 August 2014

  • BWIC 'interface' launched

    DealVector has launched a central repository for daily BWIC information, which aims to improve liquidity in structured markets. Dubbed BWIC Board, it is a single interface that provides a simple overview of the entire market and notification linkages based on investor preferences.

    The platform says that brokers who contribute BWIC list data will maintain control of their relationships while receiving .......

    News Round-up 22 August 2014

  • Credit funds hit by redemptions

    Hedge fund assets declined by 0.49% in July, according to eVestment, with performance accounting for the majority of the dip. Though positive for the seventh consecutive month at US$4.9bn, investor flows were below the last twelve-month inflow average of US$14.6bn.

    The primary reason for muted net inflows in July appears to be redemptions from credit strategies, which saw US$2.4bn redeemed .......

    News Round-up 20 August 2014

  • CMBS 2.0 loan prepays

    The US$19.5m Acropolis Gardens Realty Corp loan, securitised in WFRBS 2013-C15, has paid off with a prepayment penalty (see SCI's CMBS loan events database). The building is a multifamily property in Queens, New York, that consists of condominium and cooperative units dependent on maintenance payments to pay debt service.

    This led to a low underwritten LTV of 14.1%, .......

    News Round-up 18 August 2014

  • CMBS resolutions hit lows

    US CMBS delinquencies were unchanged in July at 4.87%, bringing an end to 15 consecutive months of declines in which the rate dropped by 276bp from 7.63%, according to Fitch's latest index results for the sector. Resolutions of US$462m and new delinquencies of US$398m last month marked post-recession lows, with the overall rate unchanged due to a decrease in the .......

    News Round-up 18 August 2014

  • Servicing 'hubs' identified

    The top seven cities for US commercial servicing operations are Kansas City, Charlotte, Dallas, Miami, Washington, New York and Hyderabad (India), according to S&P. The findings are based on data from the agency's ranked commercial mortgage loan servicers, pinpointing major geographic locations for commercial mortgage servicing.

    "We believe Hyderabad is the newest servicing hub," S&P notes. "It represents a key .......

    News Round-up 15 August 2014

  • Second 2.0 loan liquidated

    The US$6.2m Langtree Ventures Portfolio loan - securitised in GSMS 2013-GCJ14 - has been resolved with a 1% loss severity, becoming the second-ever CMBS 2.0 loan to liquidate. Morgan Stanley CMBS strategists note that the payment distribution was consistent with their understanding of the CMBS 2.0 waterfall, in contrast to the first 2.0 liquidation - The Cove at Southern, securitised .......

    News Round-up 14 August 2014

  • Strongest recovery seen for apartments

    US major market apartment prices have risen above their pre-crisis peak by 32%, according to the latest Moody's/RCA CPPI national all-property composite index. The CPPI itself increased by 1.2% in June and is now 64.1% above its January 2010 trough and only 2.4% below its November 2007 peak. The apartment component rose by 2.7%, while the larger core commercial component .......

    News Round-up 13 August 2014

  • Euro markets unexpectedly busy

    Weakness in the broader financial markets brought volatility to the European ABS sector last week. An unseasonably high number of ABS bid-lists were observed, while activity is building in RMBS and the focus on CMBS has been on the unexpected postponement of a new issue.

    "The last week and a half has seen activity picking up strongly. It was quiet .......

    Market Reports 13 August 2014
×