CMBS

  • CWCapital sale results emerging

    Results from the US$2.57bn CWCapital CMBS auction (SCI passim) are beginning to trickle out. Over 700 potential buyers signed confidentiality agreements in mid-October after the liquidation was announced, with 153 of them eventually lodging bids.

    Starwood Capital, Lone Star and an Oaktree Capital Management/Sabal Financial Group venture are said to be among the successful bidders. Additionally, Blackstone is believed to .......

    News Round-up 16 January 2014

  • Margaux asset sold

    Hatfield Philips International has agreed the sale of the Margaux portfolio, securitised in the Titan Europe 2006-2 CMBS, for a purchase price of €268m (see SCI's CMBS loan events database). IN-WEST Partners managed the purchase and also co-invested alongside the purchasing institutional investors.

    The portfolio comprises of circa 8,500 residential units mainly located in Berlin, Dusseldorf, Neuss, Leipzig, .......

    News Round-up 16 January 2014

  • Japanese CMBS defaults surveyed

    From 2Q08 to end-September 2013, 147 loans backing Japanese CMBS transactions rated by S&P defaulted. The agency surveyed loan- and property-level data for these loans and found that the recovery process for 138 of them was completed by the end of the period, leaving only nine outstanding defaulted loans.

    The simple average recovery rate of the 134 loans with completed .......

    News Round-up 15 January 2014

  • REIT vet joins CRE advisory

    Situs has grown its West Coast team with the appointment of Eric Smith as business development leader. He will be based in San Francisco and report to Kenneth Segal and Eric Lindner.

    Smith also currently serves as an independent director at KBS Strategic Opportunity REIT. He has 25 years of experience in the industry, having previously worked at Loan Value .......

    Job Swaps 15 January 2014

  • Law firm promotes real estate pair

    Danielle Schechner has been elected to partner in the real estate group of Pryor Cashman, while Benjamin Teig has been named as of counsel. Both are based in New York.

    Schechner has been at the firm since 2006. She has also worked at Millennium Inorganic Chemicals and Fried Frank.

    Teig focuses on commercial real estate and was previously a real .......

    Job Swaps 15 January 2014

  • Bright spots

    Mixed fortunes in structured finance recruitment

    Certain areas of the structured finance recruitment sector are growing, but large parts remain muted. European activity is all but moribund, while the picture in the US is mixed.

    The US securitised markets show several areas of growth, not least in CLOs. While the CMBS and RMBS sectors are mixed, the ABS market is anticipated to become even quieter going .......

    News Analysis 15 January 2014

  • CRE prices continue to rebound

    Central business district office properties in major markets have performed the best of the office segments in the Moody's/RCA Commercial Property Price Indices since the January 2010 trough, increasing around 97%. Major market prices have recovered nearly all of their peak-to-trough loss, while non-major markets have recovered more than half of their loss.

    Growth in office prices in Manhattan has .......

    News Round-up 14 January 2014

  • Collaborative bid-list platform launched

    Trepp has launched a collaborative workflow solution to provide bid-list management, analysis and colour tracking for traders and other market participants. The offering is dubbed TreppTrade and is designed to help workgroups spend less time collecting data so they can focus on other tasks.

    TreppTrade features robust bond screening, team-oriented workspaces and powerful yield tables. The solution is designed to .......

    News Round-up 14 January 2014

  • Foundation for continued growth?

    The US CLO and CMBS sectors saw impressive issuance in 2013, as the recovery in the asset classes continued apace. European volumes, meanwhile, reflect the growing diversity of jurisdictions on offer across the region's ABS market.

    Last year proved to be impressive for US CMBS 3.0 issuance, with conduit volumes totalling US$53.1bn, a 65% increase from US$32.2bn in 2012. US single-borrower/single-asset .......

    News 14 January 2014

  • Insurer CRE participation polled

    Preliminary results for the CREFC/Trepp Portfolio Lender Survey of commercial mortgage investment performance within the insurance company sector have been released. The survey was used to gather previously unavailable industry data for use in assessing investment performance and general benchmarking purposes.

    The results indicate the continuation of the superior investment performance achieved by US insurance companies through allocations to commercial .......

    News Round-up 13 January 2014

  • Special servicer rankings released

    DBRS suggests that there is now enough data and performance history to control for the important differences across US CMBS special servicing portfolios. As such, the agency has put together a quantitative ranking of special servicer performance.

    Torchlight Investors comes top in the rankings, followed by ORIX Capital Markets, Midland Loan Services, Wells Fargo Bank and Situs Holdings. The results .......

    News Round-up 13 January 2014

  • CRE expectations surveyed

    US commercial property finance professionals are increasingly focused on how high and how quickly interest rates will rise, as well as how commercial and multifamily loan underwriters will react, according to the inaugural CRE Finance Council 2014 Outlook Survey.

    "Commercial real estate finance industry participants are watching for market reaction as the Fed begins its tapering programme of government bond .......

    News Round-up 13 January 2014

  • CMBS losses projected

    S&P has published its expected loss projections for the North American conduit-fusion CMBS transactions that it rates. The report addresses losses by transaction, vintage, property type and MSA.

    "Our estimates of projected losses focus on our observed performance of CMBS transactions over time," notes S&P credit analyst Barbara Hoeltz. "They incorporate up-to-date performance information provided by the master and special .......

    News Round-up 13 January 2014

  • CMBS resolutions to continue apace

    The US CMBS delinquency rate could fall by another two percentage points to below 4% by year-end, should the pace of resolutions continue and new issuance remain strong, according to Fitch. Delinquencies improved by roughly two percentage points in 2013, having started the year at 8% and expected to close it out at just under 6%.

    A continuation of the .......

    News Round-up 13 January 2014

  • US CMBS tightens further

    US CMBS spreads continued to tighten yesterday as bid-list activity grew. BWIC volume reached around US$219m, with a large number of 2.0 and 3.0 below-investment grade bonds circulating.

    SCI's PriceABS data shows a range of vintages out for the bid, with deals issued as long ago as 2005 and as recently as last year represented. Included among these .......

    Market Reports 10 January 2014

  • Underperformance for directional strategies

    Hedge funds gained an average of 1.2% in December and ended 2013 returning 9.2%, according to eVestment figures. In comparison, 2012 and 2011 returned 7.4% and -3.1% respectively.

    However, last year credit strategies posted their third lowest annual return (6.26%) since 1998, besting only 2011 (2.3%) and 2008 (-8.7%). "Performance was dragged down by directional credit strategies underperforming in the .......

    News Round-up 9 January 2014

  • CMBS pay-offs dip

    The percentage of US CMBS loans paying off on their balloon date hit 76.5% in December, a modest decline from the November rate of 81.3%, according to Trepp. Last month's pay-off percentage is well above the 12-month moving average of 67.9%, however.

    By loan count as opposed to balance, 74.6% of loans paid off in December, also a slight decline .......

    News Round-up 9 January 2014

  • CMBX.6 lessons learnt?

    CMBX.7 is expected to launch on 27 January. While its exact composition is yet to be confirmed, the index is predicted to compare favourably to CMBX.6 in terms of credit enhancement and JC Penney exposure - although credit metrics may point to slipping underwriting standards.

    Morgan Stanley CMBS strategists expect CMBX.7 to reference the 25 most recent CMBS 2.0 deals .......

    News 9 January 2014

  • Good start for Euro CMBS

    The European CMBS secondary market has made a positive start to 2014. SCI's PriceABS data shows several covers from yesterday's session, while one trader predicts that increased activity should drive spreads tighter in the coming weeks.

    "Last week was still fairly quiet as everyone returned to their desks, but this week has been better. There have been more .......

    Market Reports 9 January 2014

  • FINRA urged to revisit TRACE proposal

    SIFMA has submitted a comment letter to the SEC on FINRA's proposed rule change relating to TRACE reporting and dissemination of transactions in additional ABS (SCI 5 November 2013). The association requests that FINRA not implement this proposal and instead engage in further discussion with the industry as to how best to preserve ABS market liquidity and re-propose this proposal .......

    News Round-up 9 January 2014

  • Improving CMBS delinquencies continue

    The Trepp US CMBS delinquency rate dropped by 23bp to 7.43% in December, marking the seventh straight month of improvement. The delinquency rate ended the year 228bp better than where it stood at end-2012. Since reaching a peak level of 10.34% in 2012, it has dropped by 291bp.

    About US$1.3bn in previously delinquent loans were resolved with losses last month. .......

    News Round-up 7 January 2014
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