CMBS

  • Hedge fund assets near all-time high

    Investors allocated more to hedge funds in February than in any other month since eVestment began tracking monthly flow data in October 2008. An estimated US$41bn flowed into hedge funds during the month.

    Performance gains added a further US$45.9bn, bringing February's asset increase to US$86.9bn, an increase of 3.1%. This is the industry's largest asset growth since performance gains drove .......

    News Round-up 20 March 2014

  • Pfandbrief bank originations step up

    Deutsche Pfandbriefbank has announced a 43% increase in its commercial real estate (CRE) loan origination, to €7bn in 2013, a trend that the bank expects will continue in 2014. Moody's notes in its latest Credit Outlook publication that greater availability of CRE loans is credit positive for European CMBS because it decreases default risk at loan maturity and improves recovery .......

    News Round-up 19 March 2014

  • Liquidation timelines examined

    Morningstar Credit Ratings has researched losses incurred on loans in non-agency US CMBS covered by the Morningstar surveillance platform to gain a quantitative insight into loss severity and timing of liquidation. Covered by the study were 97,412 loans from 995 deals issued between 1994 and 2013, of which 9,567 experienced a loss.

    The Morningstar study finds that average time to .......

    News Round-up 19 March 2014

  • Delinquencies plunge on CWCAM sales

    US CMBS delinquencies plunged last month as CWCapital bulk asset sales were booked and new delinquencies fell to their lowest level in five and a half years, according to Fitch's latest index results for the sector. CMBS late-pays fell by 46bp in February to 5.43% from 5.89% a month earlier, while resolutions of US$2.2bn outpaced new additions to the index .......

    News Round-up 17 March 2014

  • MLCFC 2007-5 reports

    Remittances have been released for a further two assets liquidated in the CWCapital bulk sale: the US$80m Resurgens Plaza Atlanta and US$13m Mars Powerline loans securitised in the MLCFC 2007-5 CMBS. The former was liquidated below its most recent appraisal, while the latter sold slightly above appraisal.

    Resurgens Plaza sold for US$62.8m versus an appraisal of US$73m, as of October .......

    News Round-up 17 March 2014

  • GG10 resolutions support spreads

    GSMS 2007-GG10 AM spreads moved tighter yesterday, following the resolution of US$583m of specially-serviced loans and a subsequent reduction in cashflow timing uncertainty (SCI 13 March). Elsewhere in the secondary US CMBS market, generic spreads were mostly unchanged and BWIC volume remained steady at around US$374m, according to Interactive Data figures.

    Supply was boosted during the session by a bid-list .......

    Market Reports 14 March 2014

  • Recovery in apartment prices underlined

    Apartment prices have recovered to a greater extent than single-family prices post-crisis in Boston, Chicago, Los Angeles, New York, San Francisco and Washington DC, according to the latest Moody's/RCA CPPI report.

    "Apartment prices peaked six quarters later, but the recovery has nevertheless been stronger, with prices currently 20% above their 4Q07 peak," says Moody's director of commercial real estate research .......

    News Round-up 14 March 2014

  • GG10 sales 'below expectations'

    Remittance reports for the GSMS 2007-GG10 CMBS cover another US$583m in liquidations from the CWCapital bulk liquidations, including a below-appraisal sale of the Two California Plaza property. Overall sales prices were below expectations, according to Barclays Capital CMBS analysts.

    Net proceeds were reported at US$348.8m, versus the most recent appraisal of US$399.6m. The liquidations resulted in losses of US$282.4m, equating .......

    News Round-up 13 March 2014

  • Google buys into online marketplace

    Google Capital has invested US$50m in Auction.com. A Google representative will join the online marketplace's board of directors and another will take a board observer position.

    Auction.com will be able to tap into Google's digital marketing expertise and target a bigger share of the global real estate market. Google joins other strategic shareholders in the company, including Starwood Capital Group, .......

    Job Swaps 12 March 2014

  • Further CWCapital outcomes reported

    A further three CMBS with significant exposure to the CWCapital bulk sales have reported US$146m in liquidations, based on March remittance reports. The deals are BACM 2008-1, GMACC 2006-C1 and GMACC 2004-C3.

    Overall proceeds from the sales beat appraisals, with US$142m in gross proceeds compared to appraisals of US$134m, according to Barclays Capital CMBS analysts. Losses came in at a .......

    News Round-up 11 March 2014

  • CMBS upgrades to increase

    Fitch expects US CMBS upgrades to increase in 2014. As the market stabilises, delinquencies decline and loans continue to be resolved, downgrades have already lessened.

    The agency expects upgrades to increase overall from the last several years as property values stabilise and its pool-level loss expectations decline. Through February 2014, Fitch has upgraded 44, downgraded 43 and affirmed 964 tranches.

    News Round-up 10 March 2014

  • RFC issued on SFR deals

    Moody's has laid out its approach to rating single-family rental (SFR) securitisations. At the same time, the agency has issued a request for comment on the related rating methodology.

    Together with Morningstar and Kroll, Moody's rated the first deal in this sector - Invitation Homes 2013-SFR1 - in November 2013 (SCI passim). The rating agency says it expects an increase .......

    News Round-up 7 March 2014

  • Positive performance for hedge funds

    Hedge fund performance was strongly positive in February, with average returns the highest since January 2012, according to eVestment. In particular, distressed funds posted their best returns in more than two years at 3.18%.

    In the face of below-average investor interest in Q4 and elevated redemptions in January, credit strategies posted solid returns in February at 1.71% and are among .......

    News Round-up 7 March 2014

  • CMBS investors play waiting game

    It has been a quiet week for the European CMBS market as investors on either side of the Atlantic remain in 'wait and see' mode. One trader reports that clients appear to be waiting for spreads to widen, although US accounts could spark some activity.

    "There is a lot of interest in European CMBS from investors in the US. They .......

    Market Reports 7 March 2014

  • Annual loss severity hits highs

    The annual loss severity for US CMBS loans was 46.3% in 2013, the highest since the inception of Moody's update report on the segment. Driven by a number of large loans that were liquidated at high losses, this figure compares to 40.1% for loans liquated in 2012.

    From 1 January to 31 December 2013, US$14.2bn of CMBS loans were liquidated, .......

    News Round-up 7 March 2014

  • Pay-offs continue to decline

    The percentage of US CMBS loans paying off on their balloon date was 68.8% in February, marking the third straight month in which the rate declined, according to Trepp. The firm notes that last month's pay-off percentage is the same as the 12-month moving average of 68.8%.

    By loan count as opposed to balance, 74.6% of loans paid off in .......

    News Round-up 7 March 2014

  • Adverse selection on the rise?

    Boosted by the FHFA's decision to limit GSE originations through tighter underwriting, the share of multifamily loans in US CMBS conduits has increased over the past year and now stands at 18%, according to Barclays Capital CMBS analysts. They warn that since agency financing remains about 50bp cheaper than private financing, there is some potential for adverse selection in CMBS .......

    News 6 March 2014

  • GSEs to turn to NPL sales?

    The GSEs have published their annual financial reports for last year, confirming that RMBS and CMBS disposals slowed down dramatically in the final quarter as sales targets were reached. With portfolios now significantly reduced, future illiquid portfolio sales may have to come from different sources and non-performing loans could be a candidate.

    The GSEs had an illiquid portfolio sales target .......

    News 5 March 2014

  • 'Unsustainable' rents eyed

    Moody's suggests that soaring apartment rents in Williston, North Dakota, are unsustainable in the wake of the energy boom. An analysis undertaken by the agency indicates that rents will ultimately normalise at far lower levels.

    "The energy production boom in western North Dakota has led to a rapid rise in population and a significant shortage of apartments. As a result, .......

    News Round-up 5 March 2014

  • CMBS spreads sneak tighter

    US CMBS BWIC volume was steady yesterday at around US$233m as spreads tightened. A considerable chunk of that supply was accounted for by the US$116.358m MLCFC 2007-7 AJ bond.

    SCI's PriceABS data shows that the MLCFC 2007-7 AJ tranche was talked during the session in the mid/high-40s. A much smaller piece of the tranche was covered .......

    Market Reports 5 March 2014

  • Titan NHP sale makes sense

    The noteholder dispute over Mount Street's replacement of Capita as the special servicer for Titan Europe 2007-1 (NHP) (see SCI's CMBS loan events database) is diverting attention away from the more pressing issue that capital expenditure is not adding significant value. Selling the portfolio now rather than waiting for valuations to increase appears to make more sense.

    HC-One .......

    News 4 March 2014
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