CMBS

  • Divergent Euro rating outlook

    Fitch's rating outlook for European structured finance (SF) transactions is geographically split. Almost 70% of ratings in the core European countries are predominantly stable, with the remainder related to transactions from the eurozone periphery, which are predominantly negative.

    The negative outlooks for the eurozone periphery reflect a combination of declining asset performance, uncertainty over timing and extent of recoveries, policy .......

    News Round-up 5 December 2013

  • CMBS servicer names new ceo

    Hatfield Philips International has appointed Blair Lewis as ceo, effective from next month. He has 17 years of experience in structured finance and joins from RBS.

    Lewis was head of structuring and origination for Europe at RBS and also served as corporate director for global banking and markets. He previously worked at ABN Amro as well as in various positions .......

    Job Swaps 5 December 2013

  • Real estate group targets MENA

    Carlton Group has hired Edwin McClendon to lead its new Middle East and North Africa unit. He is based in Dubai and has over 30 years of experience in real estate and investment banking, including as ceo of McClendon, Morrison & Partners.

    McClendon has particular experience of senior credit facilities and mezzanine financings. He will work with vp Chase Chehade, .......

    Job Swaps 4 December 2013

  • Pulled loans augur bondholder risk

    The removal of loans from two recent US CMBS could be an early warning sign of risk for bondholders, Fitch notes. The agency suggests that borrowers' eagerness to lock in historically low interest rates and originators' enthusiasm to maintain volumes are putting pressure on securitisations to come to market quickly, raising the risk of errors in loan oversight.

    Recently a .......

    News Round-up 4 December 2013

  • Resolutions drive delinquency decline

    The Trepp US CMBS delinquency rate continued its impressive turnaround in November, which marked the sixth consecutive month of improvement. With a decrease of 32bp, the delinquency rate now stands at 7.66%.

    Last month's rate decrease was driven by almost US$1.2bn in previously delinquent loans being resolved with losses. By removing these delinquent loans from Trepp's numerator, the rate saw .......

    News Round-up 4 December 2013

  • Refi challenge forecast for 2014

    Over €10bn of outstanding loans backing the European CMBS that S&P rates could be in need of refinancing in 2014. The agency notes that over €13bn of loans are scheduled to mature next year, of which about €3bn have already prepaid.

    While the refinancing challenge is not expected to be as acute next year as it was this year, 2014's .......

    News Round-up 3 December 2013

  • CMBS criteria updated

    Moody's has updated its approach for rating EMEA CMBS, following a request for comments period (SCI 14 October). The methodology includes a newly incorporated element of minimum yields in the analysis. It is not expected to have a rating impact on currently outstanding ratings, however.

    .......

    News Round-up 3 December 2013

  • Economic improvement to boost esoteric ABS

    The improving US and global economies will generally boost collateral performance of US commercial and esoteric (C&E) ABS in 2014, Moody's says. Real estate values, technological obsolescence and idiosyncratic factors are also expected to drive credit performance across the sector.

    "Collateral performance of securitisations backed by equipment loans and leases will benefit the most from the modestly improving US economy," .......

    News Round-up 3 December 2013

  • CMBS liquidations return to form

    After two months of relatively low US CMBS liquidation volume, November brought a return to average levels, according to Trepp. Liquidation volume came in at US$1.2bn last month, up from US$960m in October and US$870m in September.

    Volume registered on par with the 12-month moving average of US$1.18bn. Further, the majority of liquidated loans fell into the greater-than-2% loss severity .......

    News Round-up 3 December 2013

  • High DSCRs to support CMBS

    Moody's expects the credit quality of loans backing US conduit CMBS to decline in 2014. However, high debt service coverage ratios (DSCR) and recovering property markets should keep performance from dropping to the low levels of loans originated in 2007.

    Although weaker underwriting standards caused Moody's loan-to-value (MLTV) ratio to increase during 2013, it will end the year 15% below .......

    News Round-up 3 December 2013

  • Driving disintermediation

    Credit availability facing further headwinds?

    Global regulatory initiatives are fostering bank disintermediation in the securitisation market. But creeping oversight of the shadow banking system could also further reduce the availability of credit.

    The recession has played out unequally, according to Tamara Box, head of structured finance at Reed Smith. "If a borrower is in prime territory, they're fine; otherwise, they're not. Current monetary and economic .......

    News Analysis 28 November 2013

  • SCI conference line-up unveiled

    Final panellist line-ups have been announced for SCI's 7th Annual Seminar, which is taking place on 4 December in London. The event is being held at Reed Smith's offices at Broadgate Tower, 20 Primrose Street, EC2A 2RS.

    This conference will focus on the 'new normal' appearing in the structured credit markets as banks continue to dispose of risky assets and .......

    News Round-up 27 November 2013

  • CMBS spreads start to tighten

    US CMBS secondary spreads have been flat for a while, but tightening was observed yesterday for 2.0 and 3.0 bonds after legacy AMs and AJs moved modestly tighter at the end of last week. Monday's BWIC volume reached just under US$100m, with a mix of vintages represented.

    Despite the approach of Thanksgiving, SCI's PriceABS data shows a number .......

    Market Reports 26 November 2013

  • CMBS downsized after loan removal

    Fitch has reissued a presale report on MSBAM 2013-C13, following the removal of the Chicago Mixed Use Portfolio loan from the pool. The asset was previously the ninth largest loan backing the CMBS.

    The agency initially assigned expected ratings for the transaction on 19 November. The deal is now backed by 63 loans secured by 74 properties, with an aggregate .......

    News Round-up 26 November 2013

  • Former credit chief sentenced for MBS fraud

    Credit Suisse's former global head of structured credit, Kareem Serageldin, has been sentenced to 30 months in prison for his part in hiding more than US$100m in losses in an MBS trading book at the bank (SCI 20 February 2008). The bonds included subprime RMBS and CMBS.

    Serageldin's manipulation of bond prices contributed to Credit Suisse taking a US$2.65bn write-down .......

    Job Swaps 25 November 2013

  • Positive run continues for credit funds

    Hedge funds saw a fourth consecutive month of strong inflows in October. Investors allocated an estimated US$9.3bn to the sector during the month, according to eVestment figures, totalling US$56.4bn during the four-month streak.

    Last month's performance gains increased hedge fund AUM by an additional US$47.6bn. The estimated asset weighted performance of 1.74% is the industry's largest since December 2010. With .......

    News Round-up 22 November 2013

  • Euro traders in CMBS 'food fight'

    European CMBS traders have been inundated with BWICs over recent weeks as the market remains busy in the run-up to year-end. Bid-lists have been trading strongly and SCI's PriceABS data shows that yesterday's session was no exception.

    "In some ways it is not great to be a dealer at the minute because all we are doing is working .......

    Market Reports 22 November 2013

  • Abenomics to have varied impact

    The Japanese structured finance market will perform well in 2014, according to Moody's, although the effects of 'Abenomics' for each sector may be varied (SCI 5 August). A continued strict lending and regulatory environment will ensure the good credit quality of Japanese RMBS and ABS will be maintained in 2014. At the same time, the performance of CMBS will benefit .......

    News Round-up 21 November 2013

  • Italian CMBS marketing

    Goldman Sachs is in the market with Gallerie 2013, a €363m Italian CMBS. The transaction securitises a loan granted to real estate fund Krypton, to enable it to acquire 13 shopping centres and one retail park located across Italy.

    Rated by DBRS and Fitch, the deal comprises €271m single-A rated class A notes, €50m single-A minus class Bs and €42m .......

    News Round-up 20 November 2013

  • Invitation to begin

    First deal heralds arrival of SFR securitisation

    The arrival of Invitation Homes 2013-SFR1 - the first-ever single-family rental (SFR) securitisation (SCI 1 November) - has finally provided the spark for the long-mooted REO-to-rental asset class in the US. Further issuances are expected, although the sector's success in the long-term will depend on several factors, not least changing home prices.

    "Single-family rental securitisations could become a considerable market. .......

    News Analysis 20 November 2013

  • B-note may complicate Lincoln Square resolution

    Morningstar says it is not currently projecting a loss on the US$220m Lincoln Square A-note, following the CMBS loan's transfer to special servicing (see SCI's loan events database). However, the B-note debt may complicate the ultimate resolution of the loan.

    The Lincoln Square loan - US$160m of which is securitised in CD 2007-CD5 and US$60m is in CGCMT .......

    News Round-up 19 November 2013
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