CMBS

  • CMBS delinquency improvements continue

    The Trepp US CMBS delinquency rate improved for the twelfth consecutive month in May, with a 17bp decline. It now stands at 6.27%, 280bp lower than the May 2013 rate. The delinquency rate has fallen by 407bp since the all-time high of 10.34% in July 2012.

    Loan resolutions totalled over US$1bn in May, up from about US$850m in April. Removing .......

    News Round-up 30 May 2014

  • Euro ABS policy options outlined

    The Bank of England and the ECB have published their joint discussion paper on the revitalisation of European securitisation, building on the report published last month (SCI 14 April). The paper discusses the reasons for the shortcomings and the opportunities for improvement of the ABS market, and is designed to stimulate discussion among stakeholders on the impediments identified and the .......

    News Round-up 30 May 2014

  • CMBS liquidations, loss severity up

    US CMBS liquidated loan volume reached US$1.02bn in May, up from US$844.16m the previous month, according to Trepp. Of the loans that were liquidated, 84% by balance fell into the greater than 2% loss severity category.

    Loss severity registered 48.94% in May, up by nine percentage points from April's 39.77% and just above the 12-month moving average of 47.62%. The .......

    News Round-up 29 May 2014

  • BPO assessments examined

    Moody's notes in its latest ResiLandscape publication that broker price opinions (BPOs) can provide fair assessments of home values for single-family rental (SFR) securitisations, if BPO providers follow detailed and thorough processes and procedures. An analysis undertaken by the agency of data from two BPO providers showed that, on average and in the current environment, BPO values approximated the eventual .......

    News Round-up 28 May 2014

  • APAC positive rating actions continue

    Fitch says that over 99% of Asia-Pacific structured finance (SF) tranches maintained their ratings, were upgraded or paid in full (PIF) last year, compared with the 95% reported in 2012. The ratio of ratings maintained, upgraded and PIF in 2013 was higher than the average over 1998-2013 for all rating categories.

    Asia-Pacific SF upgrades outnumbered downgrades by a ratio of .......

    News Round-up 28 May 2014

  • Pre-crisis losses decline

    The turnaround of the US housing market has led to a sizeable decline in pre-crisis global securitisation losses, Fitch reports. At the same time, loss expectations for pre-crisis EMEA securitisations have remained constant.

    Total losses on US bonds issued between 2000 and 2008 fell to 5% from the 5.4% recorded in Fitch's study last year. Total losses include both realised .......

    News Round-up 28 May 2014

  • Further CMBS auctions listed

    A further 64 properties backed by US$403m in US CMBS loans have been added to the Auction.com sales listed for June (see also SCI's CMBS loan events database). A large portion of these loans are from a few deals on which CWCapital is the special servicer, according to Barclays Capital CMBS analysts.

    They note that the largest deal .......

    News Round-up 27 May 2014

  • New issuance dampens default rate

    Fitch's US CMBS cumulative default rate declined by 20bp in the first quarter to 13.5%, due to US$8.3bn in new issuance. In 1Q14, 91 loans totalling US$1.1bn were newly defaulted, up considerably from 42 loans (US$340.3m) in 4Q13 and 72 loans (US$781.2m) in 1Q13.

    The increase in the quarterly default amount was driven by larger loans over US$20m, according to .......

    News Round-up 23 May 2014

  • SFR criteria released

    Kroll Bond Ratings has published its single-family rental (SFR) securitisation methodology. Given the hybrid nature of the underlying collateral, KBRA will employ elements from both its CMBS and RMBS methodologies to analyse SFR transactions.

    When considering the probability of default of a SFR loan, KBRA determines the estimate of sustainable net cashflow, known as KBRA Net Cash Flow (KNCF). KNCF .......

    News Round-up 22 May 2014

  • CMBS chief makes move

    Goldman Sachs has hired Jonathan Strain as an md in its commercial mortgage bond business. He will become co-head of the US real estate finance group, alongside Ted Borter, and be based in New York.

    Strain joins from JPMorgan, where he was head of CMBS capital markets. He has also worked at Dillon Read Capital Management, UBS and Morgan Stanley.

    .......

    Job Swaps 22 May 2014

  • LEMES 2006-1 offer enhanced

    IEF, the sponsor of Dutch CMBS Leo-Mesdag, has offered noteholders an enhanced restructuring proposal. The new proposal includes an additional equity contribution of €15m, to be paid out either as additional interest to the class A notes or as loan amortisation.

    A proposal made last month failed to gain sufficient approval from class A noteholders (see SCI's CMBS loan events .......

    News 22 May 2014

  • CMBS property set for condemnation

    The property securing the US$22.8m Cahuenga Mixed Use loan in COMM 2012-CR1 has been watchlisted due to the threat of condemnation by the City of Los Angeles. Morgan Stanley CMBS strategists note that it is highly unusual for CMBS properties to be condemned or seized via eminent domain.

    The move is in connection with a major redevelopment of Universal Studios, .......

    News Round-up 21 May 2014

  • Idiosyncrasies drive CMBS 2.0 defaults

    The first US CMBS 2.0 loan defaults have surfaced. However, Fitch notes that they were driven by idiosyncratic events and do not appear to be the start of prolonged rising defaults.

    Nine loans totalling US$74.9m defaulted last year in CMBS deals issued between 2010 and 2013. Eight of the defaults were on loans for multifamily properties. The causes were largely .......

    News Round-up 20 May 2014

  • LDPX delinquencies drop

    May remittance reports indicate that 11 loans totalling US$284.5m were liquidated from the JPMCC 2007-LDPX CMBS by LNR, a portion of which is likely due to Auction.com sales. The resolutions resulted in an overall loss severity of 52%, according to Barclays Capital figures.

    The largest liquidated loan was the US$103.5m Long Island Marriott and Conference Center loan (see SCI's loan .......

    News Round-up 19 May 2014

  • Stuy Town mezz interest discussed

    Further analysis of the mezzanine loan encumbered by Stuyvesant Town-Peter Cooper Village has emerged, following reports that CWCapital plans to foreclose on the asset (SCI 15 May). CMBS strategists at Morgan Stanley found that US$1.4bn of mezzanine debt was tranched into various components, with Mezz 1-3 accounting for US$300m, Mezz 4-9 totalling US$600m, Mezz 10 totalling US$300m and Mezz 11 .......

    News Round-up 16 May 2014

  • CRE info firms unite

    Trepp has bought CRE Direct, providing mutual clients with streamlined access to additional CRE information and analysis. Trepp will deliver authorised access to CRE Direct through its TreppTrade, TreppCMBS and TreppLoan products and CRE Direct will continue to operate independently.

    .......

    Job Swaps 16 May 2014

  • Turning tide?

    ECB attitude shift provides securitisation lift

    The re-emergence of the European securitisation market has been helped by initiatives like the European DataWarehouse (SCI passim). This process could be set for greater impetus from the ECB, particularly if a high quality securitisation (HQS) label is introduced.

    The build-out of the European DataWarehouse (ED) has been a key development in the market post-financial crisis. Despite some initial scepticism, .......

    News Analysis 16 May 2014

  • Stuy Town news sparks rally

    US CMBS bonds with exposure to the US$3bn Stuyvesant Town-Peter Cooper Village loan rallied yesterday on reports that Fortress is readying a US$4.7bn bid for the asset, while CWCapital may initiate a mezzanine foreclosure. If these moves materialise, the five transactions in which the loan is securitised are expected to take little - if any - A-note losses upon its .......

    News Round-up 15 May 2014

  • Rates encourage CMBS prepays

    US CMBS loans have experienced an increase in the number of early prepayments with defeasance or yield maintenance recently. Forward rate expectations are a strong driver of such activity, but higher penalty payments have dampened cash-out refinancings.

    Early prepayment volumes are still a long way off the levels seen in 2005-2007, when the gross WAC for new CMBS originations increased .......

    News 15 May 2014

  • Hedge fund AUM hits highs

    Investors allocated heavily into hedge funds in April, the third consecutive month of elevated inflows, according to eVestment. The US$17.9bn of new capital added offset the slight asset-weighted performance declines and pushed the industry's AUM to an all-time high of US$2.94trn.

    Credit fund flows were positive but near flat for the second consecutive month, albeit AUM remains at an all-time .......

    News Round-up 15 May 2014

  • Multi-borrower SFR concerns outlined

    Credit concerns related to single-family rental (SFR) securitisations backed by loans to multiple borrowers will differ in several important respects from the single-borrower SFR transactions that have recently been issued, according to Moody's. Such deals - especially when backed by loans to many small borrowers, each of which owns only a few properties - will likely exhibit less default volatility .......

    News Round-up 15 May 2014
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