CMBS

  • 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

  • New benchmark needed?

    Meaningful shifts in cashflow, structure and collateral performance for GSMS 2007-GG10 may mean that consideration of other transactions as the benchmark US CMBS is warranted. Although the GG10 duper is still the largest in the sector, recent loan liquidations have seen a number of other tranches being written down.

    In fact, Interactive Data notes in its Monthly Market Insight publication .......

    News 17 April 2014

  • Second wave?

    NPL securitisation opportunity may be ending

    As legacy non-agency RMBS yields have largely dried up, investors have had to look elsewhere. Attractive absolute returns can be found in the non-performing loan (NPL) market, although the opportunity may be overplayed.

    Yield is undoubtedly a primary driver of investor interest in NPL securitisations. While US single-family rental transactions are achieving unexpectedly tight pricing for such a new asset .......

    News Analysis 16 April 2014

  • Key vet to lead real estate group

    KeyCorp has appointed Angela Mago to lead KeyBank Real Estate Capital and Community Development Lending. She will report to Christopher Gorman, Key Corporate Bank president.

    Mago has been at Key for 26 years, most recently leading the real estate capital markets team which has responsibility for originating, underwriting and distributing permanent mortgage financing through Fannie Mae, Freddie Mac and CMBS. .......

    Job Swaps 16 April 2014

  • Stable rating outlooks for APAC

    Fitch reports that over 97% of its Asia-Pacific structured finance rating actions in 1Q14 were affirmations, with eight upgrades and two downgrades accounting for the remaining rating actions. Of the 364 affirmations, 347 were from Australia and New Zealand.

    Australia also contributed all eight of the upgrades - to auto loan ABS, prime RMBS and non-conforming RMBS bonds - during .......

    News Round-up 16 April 2014

  • CBD office prices outperform

    The growth of central business district (CBD) office prices outpaced that of suburban office prices post-crisis in major US metro areas. CBD office prices appreciated by 106.5%, compared with 54.2% for suburban office prices, according to the latest Moody's/RCA CPPI report.

    "After hitting their post-crisis troughs, central business district office prices far outperformed prices of their suburban office counterparts by .......

    News Round-up 16 April 2014

  • Housing reform bill weighed

    Several provisions in the comprehensive housing finance reform bill introduced by US Senators Tim Johnson and Mike Crapo would help spur issuance of private-label RMBS (SCI 12 March), according to Moody's. At the same time, the bill is expected to modestly dampen prices of multifamily properties and increase CMBS refinance risk.

    Under the framework proposed in Johnson-Crapo, fewer residential mortgage .......

    News Round-up 15 April 2014

  • CMBS criteria updated, back-tested

    Fitch has published a criteria exposure draft for rating CMBS and loans in EMEA secured on investment property, including multifamily apartment blocks. The exposure draft includes a widening of criteria to include loan ratings, enhanced disclosure on the setting of key real estate assumptions, guidance ranges for those key assumptions and greater insight into Fitch's analysis of contracted income.

    The .......

    News Round-up 15 April 2014

  • Loan defaults hit post-2008 lows

    US CMBS loan defaults dropped for the fourth consecutive year and to their lowest level since 2008, according to Fitch's annual US CMBS loan default study. The agency reported an annual default rate of 0.9% for CMBS in 2013, compared with 1.2% in 2012.

    "The broader commercial real estate markets are stabilising and healthy new CMBS issuance volume is providing .......

    News Round-up 15 April 2014

  • 'Cheap' Euro CMBS lacks buyers

    There was a lot of price talk on European CMBS tranches in the secondary market yesterday, but a lack of trades as the market winds down for Easter. CMBS looks cheap compared to RMBS but investors remain reluctant to get involved.

    "The Street has been a bit more active over the last couple of weeks but we are still seeing .......

    Market Reports 15 April 2014

  • Asset sales drive delinquencies lower

    US CMBS delinquencies fell sharply again last month as more CWCapital bulk asset sales were booked and delinquency rates for the major property types converged, according to Fitch's latest index results for the sector. CMBS late-pays fell by 27bp in March to 5.16% from 5.43% a month earlier, while just 1.59 percentage points separated the property type with the lowest .......

    News Round-up 14 April 2014

  • Pay-offs decline further

    The percentage of US CMBS loans paying off on their balloon date was 64.6% in March, according to Trepp, marking the fourth straight month in which the rate declined. The March pay-off percentage was also lower than the 12-month moving average of 69.5%.

    By loan count as opposed to balance, 64.8% of loans paid off last month. March's rate was .......

    News Round-up 11 April 2014

  • CRE CDO embraces flexibility

    H/2 Asset Funding 2014-1, which closed last month, could represent a watershed for the CREL CDO market. The transaction harks back to the flexibility seen in legacy deals, which is expected to become increasingly prevalent in future issuances.

    There have been 15 CREL CDOs issued since the start of 2012, with eight of those coming since June 2013. Specialty finance .......

    News 11 April 2014

  • Japanese credit quality improving

    S&P reports that it raised 9.41% of its outstanding ratings on Japanese structured finance securities in 2013, exceeding its downgrade rate of 5.1% for the year. The ratio of upgrades to downgrades stood at 1.85 in 2013.

    The downgrade rate had consistently exceeded the upgrade rate from 2008 through 2010, but that pattern reversed in 2011 and continued to improve .......

    News Round-up 9 April 2014

  • Multifamily tops originations

    US commercial and multifamily mortgage bankers closed US$358.5bn of loans in 2013, according to MBA's latest commercial real estate/multifamily finance annual origination volume summation. Multifamily rental properties drew the most financing, while banks and thrifts were the largest source of commercial real estate lending.

    Commercial bank and savings institutions were the leading investor group for whom loans were originated in .......

    News Round-up 9 April 2014

  • MBS funds lead returns

    Hedge fund performance was negative in March - returning -0.11% for the month and 1.22% for the quarter - but credit exposures remained a bright spot, according to eVestment. Credit funds were up by 0.59% last month and by 2.22% for Q1.

    MBS-focused funds were a leading sub-sector of the industry in March and Q1, returning 1.11% and 3.37% during .......

    News Round-up 9 April 2014

  • CMBS market awaits A1A list

    US CMBS BWIC volume reached US$287m yesterday, with activity skewed towards AM and AJ bonds. Supply is set to jump today, as a US$677m list of 2006- and 2007-vintage multifamily-directed A1A tranches is scheduled to hit the market.

    Among the AM tranches that were out for the bid yesterday, SCI's PriceABS data picked up the CWCI 2006-C1 AM .......

    Market Reports 9 April 2014

  • Appraised values examined

    The average appraised value for US CMBS specially serviced loans has declined by 1% year-over-year, according to Fitch. This finding is based on its analysis of 738 loans, with a total original loan balance of US$12.6bn.

    Approximately 48%, or 356, of these loans experienced a decline in appraised value from the previous appraisal; for those loans experiencing a decline, values .......

    News Round-up 7 April 2014

  • Troubled mall sold

    The Southlake mall outside Atlanta, Georgia, has been bought by Vintage Real Estate. The mall backs a US$100m loan in REO, of which US$70m was securitised in BSCMS 2007-PW18.

    The company has pledged to commit capital to replacing an adjacent anchor pad with new fashion stores and restaurants. The loan was originally modified as part of the GGP bankruptcy in .......

    News Round-up 4 April 2014

  • Euro CMBS losses as expected

    European CMBS has performed better than its reputation might suggest. The principal loss rate to date is an estimated 0.8% of the initially issued note balance and all of that comes from 2005- to 2007-vintage transactions.

    Barclays Capital CMBS analysts calculate that €78bn of European CMBS remained outstanding at end-March, of which €44bn was UK CMBS and €34bn was Continental .......

    News 3 April 2014

  • Spring in the step

    The European RMBS market has been consistently busy in recent weeks. This healthy level of activity has fuelled a rally in Dutch bonds in particular.

    "The first quarter of the year has seen a big rally for the Dutch market and secondary spreads are evidence of that. The strong tightening on Cartesian Residential Mortgage 1 shows that investors are still .......

    Market Reports 3 April 2014
×