CMBS

  • 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

  • CMBS payments imply unique structure

    The most recent payment report for European CMBS Infinity Soprano shows that the transaction amortised by €31.8m on the May IPD. In an unusual development, proceeds from two EHE loans that failed to pay in January (SCI 28 January) are continuing to be passed through to noteholders.

    Redemption proceeds were applied modified pro-rata, with the pro-rata portion correcting a previous .......

    News 15 May 2014

  • Store closures unlikely to hit CMBS

    A flurry of in-line tenant store closures in the US could further weaken some already underperforming malls, especially those in tertiary locations, Fitch says. However, the store closures are unlikely to have a significant impact on the performance of Fitch-rated CMBS.

    The majority of the store closing announcements made thus far in 2014 are associated with smaller-sized tenants. These retailers .......

    News Round-up 14 May 2014

  • Dodd-Frank to prompt B-piece sales

    The first four months of the year have seen 60 US CMBS B-piece bonds appear a combined 97 times on BWICs. Dodd-Frank risk-retention requirements could accelerate this trend in the near term.

    Morgan Stanley CMBS analysts put the value of those B-piece bonds at US$630m. For 50 out of the 60 bonds, the original B-piece buyer had been either Rialto, .......

    News 14 May 2014

  • Office Depot exposure examined

    Retailer Office Depot is set to close over 400 of its stores, following its merger with OfficeMax. A list of store closures has not yet been made available, but about 380 properties across 355 US CMBS loans are believed to have exposure to Office Depot or OfficeMax.

    The store closures will occur in stages, with 150 scheduled for this year .......

    News Round-up 14 May 2014

  • Core commercial outperforms apartments

    The Moody's/RCA Commercial Property Price Indices (CPPI) national all-property composite index decreased by 0.1% in March and now stands 57.4% above its January 2010 trough and 6.3% below its November 2007 peak. The apartment component increased by 0.3%, while the larger core commercial component decreased by 0.3%.

    However, core commercial prices have increased by 16.3% over the last 12 months, .......

    News Round-up 14 May 2014

  • Incremental changes for the GSEs

    The FHFA has released its 2014 strategic plan for the conservatorship of and the scorecard for the GSEs. Many of the changes are seen as incremental in nature compared with previous strategic plans.

    Under the scorecard, the FHFA has set a US$90bn target for risk transfer in 2014 and each enterprise must utilise at least one transaction type in addition .......

    News Round-up 14 May 2014

  • CMBS supply centres on A4s, AJs

    US CMBS bid-list volume came in at around US$175m yesterday, slightly lower than it had been at the end of last week. SCI's PriceABS data shows a significant amount of A4 and AJ paper out for the bid.

    A large CDO liquidation list of fully written-down legacy subordinated bonds is also said to have traded during the session. .......

    Market Reports 13 May 2014

  • Canadian CMBS platform created

    Trez Capital Group has launched a CMBS platform and appointed Ross Brennan to lead it. Trez Commercial Mortgage will focus on providing long-term financing on stabilised income producing commercial properties across Canada.

    Brennan joins as a partner and md. Before he joined Trez he was president and ceo of Otera Capital and prior to that he started the CMBS conduits .......

    Job Swaps 13 May 2014

  • Aussie reporting requirements enhanced

    The Reserve Bank of Australia (RBA) has published updated and more detailed information on how its new reporting requirements for repo-eligible ABS will be implemented. In particular, all data for each securitisation must now be provided on a monthly basis, no later than seven calendar days after an issuer's specified coupon payment date and the equivalent monthly anniversary in non-coupon-payment .......

    News Round-up 13 May 2014

  • Low-quality retail assets eyed

    Moody's expects low-quality retail assets securitised in UK CMBS to be more vulnerable to future changes in technology and consumer behaviour than higher-quality retail assets. The rise of e-commerce, the growth of retail destinations with superior leisure and catering options, and the use of technology to assess the optimal tenant mix and layout of properties are set to influence the .......

    News Round-up 12 May 2014

  • 'Fresh' surveillance tool launched

    Kroll Bond Rating Agency has launched a new monthly CMBS surveillance product -KBRA Credit Profile (KCP) reports. The new service aims to provide the CMBS industry with transparency, accuracy and a "fresh perspective" on CMBS monthly surveillance.

    The KCP platform is the only product utilising a multi-valuation approach, providing full transparency of valuation assumptions and forecasting both default and resolution .......

    News Round-up 12 May 2014

  • Delinquency rate remains stable

    US CMBS delinquencies ticked down by 3bp in April to 5.13% from 5.16% a month earlier, according to Fitch's latest index results for the sector. This marks the smallest drop in over a year, after declines of 10bp or more in nine of the past 12 months.

    The largest new delinquency recorded in April was for the US$80m 1111 Marcus .......

    News Round-up 12 May 2014

  • CMBS pay-offs inch lower

    The percentage of US CMBS loans paying off on their balloon date was 63.6% in April, just one point lower than the March reading of 64.6%, according to Trepp. The April pay-off percentage was lower than the 12-month moving average of 69.5%.

    By loan count as opposed to balance, 67% of loans paid off last month, compared to 64.8% in .......

    News Round-up 12 May 2014

  • Origination differences emerging

    Important differences are emerging among US CMBS originators, Fitch says. This observation is based on the agency's analysis of over 2,000 conduit loans included in 2013 and 1Q14 Fitch-rated transactions, comparing 19 originators across 17 key metrics.

    "This analysis will help investors determine whether anecdotal impressions of originator quality are supported by hard data," says Fitch md Stephanie Petosa.

    The .......

    News Round-up 9 May 2014

  • Stuy Town expectations revised

    The outlook for the Stuyvesant Town-Peter Cooper Village loan, securitised in five CMBS, has improved. Losses are no longer expected and the property could be sold later this year.

    The Manhattan apartment complex backs a US$3bn senior loan split between WBCMT 2007-C30, MLCFC 2007-5, CWCI 2007-C2, WBCMT 2007-C31 and MLCFC 2007-6, as well as US$1.4bn of mezzanine loans (SCI passim). .......

    News 9 May 2014

  • XA spread compression over?

    The strength of US CMBS XA tranche BWIC execution last month caught the market by surprise, leading to a sharp rally in select IOs. New issue XAs are now trading through their historical tights, suggesting that the potential for further upside is limited, especially for bonds from the 2012-2013 vintage.

    A US$1.7bn bid-list consisting of 13 block-sized 2011-2012 vintage conduit .......

    News 8 May 2014

  • Credit drives hedge fund returns

    Hedge fund performance was positive in April, rebounding from its decline in March, according to eVestment. Returns rose by 0.16% during the month and are up by 1.35% year-to-date, on pace for an annualised return of only 4.12%.

    Credit strategies appear to have benefited from a decline in rate markets since the beginning of 2014 and are now the best-producing .......

    News Round-up 8 May 2014

  • CLO research analyst added

    Citigroup has added Maggie Wang to its CLO research team in New York. She joins as a director and will start in June.

    Wang was most recently head of US CLO and CDO research at JPMorgan, where she also closely followed the ABS, CMBS and high yield markets. She has also worked for EMC and Siemens.

    .......

    Job Swaps 8 May 2014

  • Pricing partnership formed

    SCI has launched a partnership with Intex to provide INTEXcalc users with free trial access to SCI PriceABS market prices for securitised products. SCI PriceABS is a daily secondary market colour and price service that includes pre- and post-auction price talk and covers/traded prices for ABS, CMBS, RMBS and CDO/CLO bonds across Europe and the US.

    The SCI .......

    News Round-up 7 May 2014

  • Improved performance seen across CRE

    Delinquency rates continued to decline quarter-over-quarter due to improving economic conditions and a further drop in the share of loans in special servicing, according to Moody's 1Q14 US CMBS and CRE CDO surveillance review. The agency's commercial mortgage metrics (CMM) base expected loss for conduit/fusion transactions fell to 8.6% in the first quarter from 8.9% in 4Q13. Moody's CMM weighted .......

    News Round-up 7 May 2014
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