CMBS

  • MS CMBS vet moves on

    Jim Chung has joined Bridge Investment Group Partners as cio for the ROC Debt Strategies Fund. He is based in New York and will focus on CMBS, having previously spent 13 years at Morgan Stanley.

    .......

    Job Swaps 7 February 2014

  • MBS funds outperform

    Hedge fund performance was negative in January, falling by an average of 0.6%, according to eVestment figures. However, the industry broadly outperformed global equity markets in what was a very difficult month, driven by increased uncertainty in emerging markets.

    Credit strategies also posted negative returns in January, the second month in the last six where performance was down. Directional strategies .......

    News Round-up 7 February 2014

  • CMBS pay-offs drop

    The percentage of US CMBS loans paying off on their balloon date stood at 71.3% in January, according to Trepp. This marks the second straight month in which the rate declined - from 76.5% in December and 81.3% in November - and is slightly above the 12-month moving average of 68.3%.

    By loan count as opposed to balance, 63.2% of .......

    News Round-up 7 February 2014

  • Larger loans set for liquidations

    US CMBS special servicers are anticipated to increase the rate at which they liquidate loans over the coming months before interest rates rise. Whereas the focus has been on liquidating smaller-balance loans over the last several years, special servicers are now expected to begin selling larger loans with greater regularity.

    CMBS analysts at Bank of America Merrill Lynch suggest that .......

    News Round-up 6 February 2014

  • CMBS BWIC volume builds

    BWIC volume continued to grow in the US CMBS market yesterday, reaching around US$450m for the session. SCI's PriceABS data shows price talk or cover prices on 70 unique tranches as generic spreads were mostly unchanged.

    More than half of the bid-list supply consisted of legacy fixed mezz securities and there was a US$42m list of AJs .......

    Market Reports 6 February 2014

  • Liquidation benefit?

    Bulk sales key to CMBS delinquency rate and investor fortunes

    The US CMBS delinquency rate has been falling month after month since last summer. The recent CWCapital REO auction and note sale will help to fuel that trend and is expected to spark further bulk liquidations, with a mixed impact on investors.

    The CMBS delinquency rate peaked at 10.34% in July 2012, but has fallen consistently over the last eight .......

    News Analysis 6 February 2014

  • Eighth straight drop for CMBS delinquencies

    The Trepp US CMBS delinquency rate decreased by 18bp to 7.25% in January, marking the eighth straight month of improvement. The decrease can be attributed to the almost US$1.3bn in previously delinquent loans that were resolved with losses over the course of the month.

    By removing these delinquent loans from the numerator, the rate saw 24bp of improvement. Loans that .......

    News Round-up 5 February 2014

  • Varied lease renewal rates in US CMBS

    US CMBS credit quality has improved in many ways, but upcoming lease expirations continue to provide a potential source of downside shock. While they are difficult to calculate and predict, certain factors appear to make non-renewals more or less likely.

    The probability of a lease renewal depends on the asset and the tenant. Certain property types and geographies appear to .......

    News 4 February 2014

  • Share of specially serviced loans down

    The improving economy has driven a drop in delinquency rates and a decrease in the share of loans in special servicing, according to Moody's Q413 US CMBS and CRE CDO surveillance review. The agency's base expected loss for conduit/fusion transactions fell to 8.95% in the fourth quarter from 9.01% the previous quarter. Its Commercial Mortgage Metrics (CMM) weighted average base .......

    News Round-up 3 February 2014

  • Loss severity pushes up

    US CMBS liquidation volume remained steady in January at US$1.28bn, but several large losses pushed the average loss severity up significantly, according to Trepp. Of the loans that were liquidated, 94% fell into the greater than 2% loss severity category.

    Overall January loss severity came in at 58.51%, up from December's 50.36% and more than 10 percentage points higher than .......

    News Round-up 3 February 2014

  • Majority of non-defaulted loans to refinance

    An estimated 86% of the US$16.4bn in Fitch-rated non-defaulted commercial mortgage loans with maturities in 2014 is expected to be able to refinance. Assuming a current market mortgage rate of 5% and a 30-year amortisation schedule, loans that have a debt service coverage ratio of at least 1.25x should be able to refinance.

    Approximately US$15.4bn of the maturing loans have .......

    News Round-up 3 February 2014

  • CRE borrowers surveyed

    The CRE Finance Council (CREFC), in collaboration with FPL Associates, has conducted a survey of commercial real estate borrowers to better understand their decision drivers in choosing a lender. The survey results also reveal borrower sentiment regarding lender competitiveness.

    Among the key take-aways from the survey is that 43% of respondents expect to target commercial banks for funding in 2014 .......

    News Round-up 3 February 2014

  • CMBS servicing merger completed

    Mount Street has acquired Morgan Stanley Mortgage Servicing (MSMS). The acquisition gives the commercial real estate loan servicer a significantly larger CMBS platform.

    The MSMS team is located in London and Frankfurt and provides servicing on commercial loans and CMBS in the UK, France, Germany, Italy, Netherlands, Belgium and Switzerland. Mount Street ceo Ravi Joseph was head of European securitisation .......

    Job Swaps 30 January 2014

  • Starwood bid surprises to the upside

    Starwood Capital has confirmed its successful bid for a pool of REO assets in the CWCapital Asset Management CMBS auction (SCI 16 January). The pool - which was acquired for US$191m - comprises seven office assets (representing 1.3 million square-feet) and four retail assets (representing 295,000 square-feet), with a cumulative unpaid principal balance of US$310.3m.

    A Morgan Stanley analysis implies .......

    News Round-up 30 January 2014

  • High-LTV loan resolutions eyed

    Fitch reports that January has been a busy month for EMEA CMBS loan maturities, with all but three of the 24 loans from the agency's portfolio that are maturing in 1Q14 falling due this month. The majority of the loans maturing between January and March have Fitch-calculated loan-to-values (LTV) of 80% or above, making refinancing at maturity difficult without sponsor .......

    News Round-up 29 January 2014

  • Trepp invests in solar analysis platform

    Solar energy investment analysis and decision making platform Mercatus has closed its Series A round of financing. Trepp has joined Vision Ridge Partners, Augment Ventures and Shah Capital in investing in the company and Trepp coo Dan Gottlieb will also join Mercatus' board.

    Mercatus allows lenders and capital market investors to harness the strength of its investment analysis and analytics .......

    Job Swaps 29 January 2014

  • Spreads steady as CMBS supply rises

    Generic US CMBS spreads were unchanged yesterday as bid-list volume continued to climb, reaching almost US$246m for the day. Secondary supply came from various vintages, with SCI's PriceABS data capturing tranches from 2005 to 2013.

    Among the 2005-vintage deals, the BAYC 2005-1A A1 bond was out for the bid and talked in the very high-80s. The tranche was .......

    Market Reports 29 January 2014

  • Servicer replacement to spark investor activism?

    Last week saw a first for European CMBS, when Hatfield Philips International was replaced with Mount Street as the primary servicer on all loans in Windermere XIV (see SCI's CMBS loan events database). The move is expected to spark increasing investor activism across the sector.

    The WINDM XIV case marks the first time that an existing primary servicer .......

    News 29 January 2014

  • Change in strategy for INFIN SOPR?

    Following a failure to pay, credit events have been called for the EHE Pool 1A and 2B reference obligations, representing almost 70% of the pool backing the Infinity 2007-1 Soprano CMBS (see SCI's CMBS loan events database). A work-out of the transaction is now expected to be significantly delayed.

    In a typical synthetic CMBS, a credit event has .......

    News 28 January 2014

  • Asian ratings poised for positive performance

    S&P expects collateral performance and structural enhancement to underpin stable to marginally positive ratings performance for Asia-Pacific structured finance securities. However, tranches that have key rating dependencies on transaction counterparties could continue to be affected by the credit conditions that would impact the credit profiles of the counterparties, the agency says.

    The economic outlook is mixed across countries where outstanding .......

    News Round-up 28 January 2014

  • CRE firm names president

    Cornerstone Real Estate Advisers has appointed Scott Brown as president of the firm. He will join next month and take over from David Reilly, who will remain as ceo.

    Brown has 26 years of real estate experience and has been involved in securitisations, REITs and various other investment structures. He joins from CBRE Global Multi Manager, where he was head .......

    Job Swaps 28 January 2014
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