CMBS

  • CMBS spreads stay steady

    US CMBS BWIC supply was over US$200m yesterday as spreads stayed mostly unchanged. CMBS 2.0 and 3.0 single-A rated securities tightened in slightly.

    Much of the bid-list supply consisted of agency paper, with SCI's PriceABS data recording a number of covers. There was also significant derivatives activity.

    In the agency space, the FHMS K017 X1 tranche .......

    Market Reports 2 May 2014

  • CMBS market continues to stabilise

    April marks the eleventh straight month of improvement in the delinquency rate for US commercial real estate loans in CMBS, says Trepp. The rate fell 10bp to 6.44% and is now 259bp lower than it was a year ago.

    The delinquency rate has consistently fallen 15bp-50bp over recent months and Trepp attributes the relative slow-down last month to the completion .......

    News Round-up 2 May 2014

  • Coterminous lease issues eyed

    Coterminous leases could be problematic for 2005-2007 vintage US CMBS loans that are scheduled to mature in 2015-2017. Loans with coterminous leases have typically experienced lower refinancing rates, according to a recent Barclays Capital analysis.

    Barclays Capital CMBS analysts estimate that about 15% of the office, retail and industrial loans maturing during 2015-2017 have significant exposure to coterminous leases. Over .......

    News 1 May 2014

  • Call for change in delinquency reporting

    DBRS proposes that the reporting of delinquency statistics in CMBS be amended to include 'DPO', 'note sale' and 'other or TBD', given the prevalence of loss experienced by loans under these work-out strategies. A new study undertaken by the agency - which measures the historical frequency of default and loss severity of CMBS loans that experience different depths of delinquency .......

    News Round-up 1 May 2014

  • Loan resolutions to 'remain stable'

    US CMBS loss severities ticked up slightly year-over-year, while the pace of loan resolutions fell, according to Fitch's latest annual CMBS loan loss study. The agency expects the pace of loan resolutions to remain constant this year and average loss severities to remain stable, compared to 2013.

    Average loss severities rose to 51.2% in 2013 from 50.5% in 2012. Special .......

    News Round-up 29 April 2014

  • Real estate group grows strategic unit

    The Carlton Group has appointed Kevin Swill to lead its crowdfunding platform alongside Navish Chawla (SCI 25 April). Bill Ohlsen has also joined Carlton Strategic Ventures (CSV).

    Chawla serves as cio of the CSV. He was previously at Madison International and BlackRock.

    Swill becomes coo and takes responsibility for institutional equity distribution and managing relationships with broker dealers, family offices .......

    Job Swaps 29 April 2014

  • Landmark CMBS ruling issued

    A judgement has been delivered on directions sought by US Bank as trustee with respect to the Titan Europe 2007-1 (NHP) CMBS. The judgement provides guidance on the termination without cause of the appointment of a servicer and confirms that a contrary disclosure in an offering circular should not modify the terms of contractual securitisation documents.

    US Bank sought direction .......

    News 29 April 2014

  • Open plans hamper office rebound

    The increasing introduction of open-plan offices will contribute to vacancies and reduce the ability of some landlords to re-lease their entire spaces, says Fitch. Although the performance of the sector improved in 2013, office properties led US CMBS defaults for the third year in a row.

    Fitch recorded 141 loans totalling US$2.6bn in 2013 versus 172 office loans totalling US$3.3bn .......

    News Round-up 28 April 2014

  • First Indian CMBS rated

    CRISIL has rated the first Indian CMBS, which is being issued by DLF Emporio and DLF Promenade. The transaction represents a milestone in the increasing sophistication of India's corporate bond market and should open a new fundraising avenue for the real estate sector.

    CRISIL has rated the CMBS at double-A. The DLF subsidiaries operate malls in south Delhi and CRISIL's .......

    News Round-up 25 April 2014

  • CRE crowdfunding platform launched

    The Carlton Group has launched a major real estate crowdfunding platform and website which will provide investors with an opportunity to invest in large, high-yielding commercial real estate investments. The platform further underlines the importance of online technology to the market (SCI 23 April).

    The website will give qualified, accredited investors access to proprietary real estate investment opportunities. Deposit monies .......

    News Round-up 25 April 2014

  • TAURS 2006-1 option exercised

    An assignee of the controlling class representative for Taurus CMBS (Germany) 2006-1 has unexpectedly exercised a purchase option under the €114.19m Bewag Berlin loan. The senior tranche of the loan has consequently been acquired from the issuer for €78.3m.

    The proceeds will be deposited into the transaction account, with no further amounts collected on the loan. The special servicer has .......

    News Round-up 24 April 2014

  • New paper in secondary CMBS

    US CMBS secondary market spreads were generally unchanged yesterday, although legacy conduit fixed AMs and AJs did tighten in. A few decent sized lists circulated as BWIC volume passed US$220m.

    SCI's PriceABS data shows a wealth of pre-crisis paper, but there were also a few 2014-vintage names out for the bid yesterday. By contrast, the earliest-vintage .......

    Market Reports 24 April 2014

  • Online revolution for CMBS market

    US CMBS special servicers were instrumental in generating acceptance for online auctions as distressed loans and REO assets flooded the market in 2009. The volume of US CMBS distressed assets may now be shrinking but the legacy of online CRE brokerage tools will live on, says S&P.

    The rating agency believes that the commercial real estate (CRE) finance industry will .......

    News Round-up 23 April 2014

  • Retail spin-off planned

    Vornado Realty Trust is set to spin off its shopping centre business - consisting of 81 strip shopping centres and four malls - into a new publicly traded REIT, the 2014 net operating income of which is estimated to be approximately US$200m. Three of the malls and a large number of the strip centres back CMBS, but no credit fall-out .......

    News Round-up 23 April 2014

  • SFR leader appoints pair

    Blackstone's real estate portfolio company Invitation Homes has appointed John Schissel as cfo and Leslie Fox as evp and coo. Last year the company named Bryce Blair as a member of the board and Gary DeLapp as president.

    Schissel joins from BRE Properties, where he served as evp and cfo until its recent merger with Essex Property Trust. He has .......

    Job Swaps 23 April 2014

  • TRIPRA changes could hurt CMBS

    The US Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) expires at end-2014. Although Congress is expected to renew it, S&P notes that the new version might contain significant changes, including what is expected to be scaled-back coverage.

    "If history is any guide, CMBS credit and liquidity issues could develop if TRIPRA is not renewed or is cut back substantially," S&P .......

    News Round-up 22 April 2014

  • CMBS loan disposals examined

    US CMBS loan disposal volume has reached US$76.6bn over the past four quarters, according to Trepp. Many of these loans (43%) fell into the prepayment category, the majority of which prepaid in the open period before the note's maturity date.

    Disposed loans fell into two major categories: prepayment/paid at maturity (accounting for 58%); and paid post-maturity/disposed of with loss (42%). .......

    News Round-up 22 April 2014

  • Record high for CMBS 2.0 leverage

    US conduit CMBS loans had an average Moody's loan-to-value (MLTV) ratio of 107.3% in 1Q14, a record high for CMBS 2.0 deals, according to Moody's. In addition, the share of conduit loans that receive a Moody's cashflow haircut of greater than 10% has jumped from the low single-digits to the mid-teens. This is partly due to the inclusion of income .......

    News Round-up 22 April 2014

  • CMBS property auctions due

    Properties backing US$188m of distressed CMBS loans are scheduled for sale via Auction.com in May and early June. The largest loan with assets out for the bid is the US$113m Trinity Hotel Portfolio, securitised in BACM 2006-5, according to Barclays Capital CMBS analysts.

    From the Trinity portfolio, the Price Holiday Inn and the Renton Holiday Inn Select are scheduled for .......

    News Round-up 22 April 2014

  • Heavy hedge fund allocations continue

    Investors continued to allocate heavily into hedge funds in March. The US$18.3bn influx of new capital during the month lifted 1Q14 net flows to US$55.1bn, a level last surpassed in 2Q07, according to eVestment.

    Credit fund flows continue along an uneven, albeit positive path. Inflows of US$9.6bn in Q1 were higher than in 4Q13, although directional credit fund flows were .......

    News Round-up 17 April 2014

  • Unusual refi strategy highlighted

    Simon Property Group recently refinanced West Ridge Mall via a US$53.9m loan securitised in the COMM 2014-CCRE16 CMBS. The property was one of the first to be identified as part of the company's spin-off and had been expected to be difficult to refinance.

    West Ridge Mall was previously encumbered with nearly US$65m of outstanding debt securitised in BACM 2004-4. Morgan .......

    News Round-up 17 April 2014
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