CMBS

  • BAML preps single-sponsor CMBS

    Details have emerged on the BAMLL 2014-ICTS single-sponsor CMBS. The US$188m transaction is backed by a non-recourse mortgage loan secured primarily by a first mortgage on the borrower's fee simple interest in a luxury hotel in New York City.

    The interest-only loan has an initial term of 25 months but allows for four one-year extensions. Interest is accrued at a .......

    News Round-up 9 July 2014

  • Stable outlooks dominate APAC

    Fitch affirmed 195 Asia-Pacific structured finance (SF) tranches in 2Q14. The agency also upgraded seven tranches and downgraded three others.

    Of the total affirmations, 77 were from Australia, which also contributed five of the upgrades during the quarter. The upgrades were made to prime RMBS and unsecured consumer loan ABS bonds, where a build-up of credit enhancement supports the higher .......

    News Round-up 8 July 2014

  • Location boosts CRE performance

    Over 26,000 loans collateralising US conduit CMBS deals issued since 2005 - representing US$363bn or about 80% of the conduit universe - have so far reported full-year 2013 cashflow data. Bank of America Merrill Lynch CMBS analysts have aggregated this data across vintages, property types and property locations to glean a better understanding of commercial real estate performance over the .......

    News 7 July 2014

  • Pricing in prepayment protection

    Tightening loan margins and note spreads have increased the likelihood of European CMBS 2.0 prepayments. However, prepayment protection appears not to have been fully priced in for certain bonds.

    CMBS prepayment protection affects how much bond prices can rise above par when spreads tighten. Barclays Capital CMBS analysts note that deals have employed various ways to treat early redemptions at .......

    News 4 July 2014

  • CMBS pay-offs drop

    The percentage of US CMBS loans paying off on their balloon date slipped noticeably in June to 67.3%, about 10 points lower than the May reading of 77.1%, according to Trepp. In comparison, the 12-month moving average stands at 71.7%.

    By loan count as opposed to balance, 74.1% of loans paid off last month - marking a slight decrease from .......

    News Round-up 4 July 2014

  • Green light for ABS, RMBS ratings

    Morningstar Credit Ratings' designation on the NAIC credit rating provider (CRP) list has been extended to cover all ABS and MBS. Previously the designation only covered CMBS.

    The amendment became effective last month and provides insurance companies with an extra option among rating providers for determining risk-based capital under NAIC guidelines. Investors using a designated CRP are exempt from making .......

    News Round-up 3 July 2014

  • German MFH performance to remain strong

    German multifamily (MFH) CMBS performance has been strong since transaction origination in 2012 and 2013, Fitch notes. The agency expects this trend to continue in the coming quarters, due to the stable economy in Germany.

    "The collateral performance of the largest MFH transactions has remained stable to positive over the last 12 months, visible through increasing rental levels, stable vacancy .......

    News Round-up 3 July 2014

  • Hedge fund assets top US$3trn

    Total assets in hedge funds surpassed US$3trn for the first time in May, according to eVestment. The US$22bn of new capital added brings year-to-date flows to US$93.3bn, the largest five-month total to begin a year since 2007.

    Performance gains added US$37.8bn to total AUM for an estimated asset-weighted return of 1.28% in May. This compares to the 1% the industry .......

    News Round-up 3 July 2014

  • Maturity repayment index inches up

    Fitch reports that six of the 10 EMEA CMBS loans maturing in 3Q14 have a Fitch loan-to-value ratio above 100%. The agency further observes that the percentage of loans formally in default and/or special servicing continues to increase as loans hit maturity.

    "Among the loans maturing in the third quarter, losses will likely be incurred, barring restructuring or injection of .......

    News Round-up 3 July 2014

  • Auction.com sales continue apace

    US$477m in US CMBS loan allocated balance is slated for sale on Auction.com in July and early August. Unlike previous auctions, most deals have only 1-2 loans up for bid.

    The largest loan up for sale is the US$67m HSA Memphis Industrial Portfolio securitised in MLCFC 2007-5, with the final nine assets in the portfolio listed (see SCI's CMBS loan .......

    News Round-up 3 July 2014

  • FirstKey set up CRE platform

    FirstKey Lending has established a commercial real estate lending programme - FirstKey Commercial. The new unit will offer bridging loans of up to US$25m to clients looking to purchase, refinance or reposition commercial properties and will be led by ceo Randy Reiff.

    Reiff was previously global head of CRE finance and CMBS at JPMorgan and global co-head of CRE finance .......

    Job Swaps 3 July 2014

  • Italian servicers adapting to NPL increase

    S&P suggests that the recent rise in Italian non-performing loan volumes could create new growth opportunities for Italian loan servicers. The agency reports that the Italian servicers it ranks have positioned themselves well to be able to manage some of the NPLs that banks and financial institutions could either sell to investors or outsource the servicing.

    The volume of NPLs .......

    News Round-up 2 July 2014

  • Continued improvement for CMBS delinquencies

    June marked the thirteenth straight month of improvement in the US CMBS delinquency rate. Dropping by 22bp to 6.05%, the reading is 260bp lower year-over-year and 429bp below the all-time high from 2012, according to Trepp.

    Industrial loans saw the most improvement in June, dropping by 55bp, after being the only property type to worsen in May. The retail segment .......

    News Round-up 2 July 2014

  • Canary Wharf II amendments 'credit neutral'

    Canary Wharf Group (CWG), the sponsor of the Canary Wharf Finance II CMBS, has sold its interest in the 10 Upper Bank Street property. The building - which is Clifford Chance's London headquarters - was recently re-valued at £780m, up from an estimated £685m in June 2013.

    As a result, 130% of the asset allocated loan amount (£577.9m) will be .......

    News Round-up 2 July 2014

  • CMBS liquidations drop

    The volume of US CMBS loan liquidations dropped to US$932.03m in June from US$1.02bn in May, according to Trepp. Of the loans that were liquidated, 90% by balance fell into the greater than 2% loss severity category.

    June loss severity came in at 45.32%, down by 362bp from May's 48.94% and just below the 12-month moving average of 46.8%. The .......

    News Round-up 2 July 2014

  • MBS fraud sentence handed out

    David Higgs, a former md at Credit Suisse, has been sentenced in connection with a scheme to hide more than US$100m in MBS trading losses. He had previously pleaded guilty and agreed to cooperate with the government's investigation into the losses (SCI 17 April 2013).

    The bonds concerned were subprime RMBS and CMBS and contributed to Credit Suisse taking a .......

    Job Swaps 30 June 2014

  • Office targets CMBS opportunities

    Walker & Dunlop has opened an office in Charlotte, North Carolina. The office will contain much of the credit operations for the firm's new CMBS conduit.

    Brett McGuire, vp, will be based in Charlotte, where a large number of commercial real estate loans are set to mature between 2015 and 2017. He has been with Walker & Dunlop since 2008, .......

    Job Swaps 30 June 2014

  • CMBS 3.0 loans enter special servicing

    After The Cove at Southern became the first CMBS 2.0 loan to take a loss this month (SCI 19 June), a pair of CMBS 3.0 loans have also entered special servicing. The US$18m Landmark Building office in COMM 2012-CR3 and the US$16m Oakridge Office Park in MSBAM 2013-C7 moved into special servicing this month.

    Barclays Capital CMBS analysts note that .......

    News Round-up 27 June 2014

  • IO switch could ease CMBS loan woes

    The Westin Falls Church hotel backing a US$62m loan in WBCMT 2006-C28 has been moved into special servicing. The loan switched from IO to amortising payments in November 2012.

    Barclays Capital analysts note that the property's performance fell last year, with DSCR NOI falling to 0.93x, having been 1.43x in 2012. The occupancy rate also fell 2% to 56%.

    "The .......

    News Round-up 26 June 2014

  • Light CMBS supply to start week

    US CMBS secondary market activity was light yesterday, with BWIC volume a little over US$100m. Generic spreads were mostly unchanged with several CMBS 1.0 tranches out for the bid.

    Most of the tranches circulating in yesterday's session were from pre-crisis deals. One of the oldest-vintage tranches available in the session was GEBL 2003-2A A.

    SCI's PriceABS Market Reports 24 June 2014

  • CMBS trader brought on board

    Dan Voloshin has joined Deutsche Bank as a CMBS trading director. He will be based in New York and report to Aaron Greenberg, co-head of CMBS trading.

    Voloshin was previously at Barclays and before that worked at Lehman Brothers. He started his career at PwC.

    .......

    Job Swaps 23 June 2014
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