CMBS

  • 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

  • Mixed metrics seen for CMBS

    Legacy US CMBS market metrics are continuing to improve, while several key indicators for new issuance finished the quarter somewhat mixed, according to Fitch's latest quarterly index report for the sector.

    Delinquencies of Fitch-rated CMBS fell by 61bp quarter over quarter in 3Q13, compared with 45bp between the first and second quarters. Similarly, the volume of loans in special servicing .......

    News Round-up 19 November 2013

  • Single-family space targeted

    Blackstone has established B2R Finance to provide residential buy-to-rent mortgages for property investors, focusing exclusively on single-family home investors. Blackstone intends to securitise the loans provided.

    Blackstone has appointed John Beacham as president of B2R. He was previously head of single-family rental home finance at Deutsche Bank.

    Jeff Tennyson will serve as B2R's ceo. He has 20 years of experience .......

    Job Swaps 18 November 2013

  • Skyline mod drives late-pays lower

    US CMBS late-pays fell by 25bp in October to 6.32% from 6.57% a month earlier, according to Fitch's latest index results for the sector. The modification of the US$678m Skyline Portfolio loan, which closed on 30 October (see SCI's CMBS loan events database), drove the decline.

    The Skyline Portfolio is securitised in three CMBS transactions - BACM 2007-1, .......

    News Round-up 18 November 2013

  • Secondary CMBS stuck in neutral?

    The US secondary CMBS market appeared to be stuck in neutral for a third straight day yesterday, with spreads largely remaining unchanged. Volumes failed to breach the US$200m level for the fourth day in a row, with about US$170m out for the bid, up from around US$150m the previous session.

    A mixed bag of securities from various vintages and from .......

    Market Reports 15 November 2013

  • Unusual mod raises recovery uncertainty

    CWCapital last week released the modification template for the US$678m Skyline portfolio (see SCI's CMBS loan events database). The unusual treatment of a loan provided by Vornado Realty Trust under the modification introduces a level of uncertainty for A-note recovery.

    The Skyline loan is placed pari passu in three deals - US$271.2m in BACM 2007-1, US$203.4m in JPMCC .......

    News 15 November 2013

  • Ratings reviewed for swap linkage

    Moody's has placed on review for downgrade the ratings of 150 notes in 48 RMBS, 17 notes in 14 ABS and four notes in two CMBS due to swap counterparty exposure. At the same time, it has placed on review for upgrade three tranches in two RMBS transactions. The move follows the finalisation of the agency's swap linkage approach (SCI .......

    News Round-up 15 November 2013

  • Structured salesman joins in NY

    Brian Bowes has joined StormHarbour Securities in a structured products sales role in New York. He covers ABS, CLOs, CMBS and RMBS in the US as well as ABS and RMBS in Europe.

    Bowes was previously head of non-agency mortgage trading at KGS-Alpha Capital Markets. He has also worked for Hexagon Securities and UBS, where he focused on residential mortgages.

    .......

    Job Swaps 14 November 2013

  • Asian market prospects 'steady'

    The strong performance of the ABS, CLO, CMBS and RMBS markets in Asia ex-Japan will continue next year, Moody's predicts. However, issuance volumes are not expected to pick up significantly.

    Tight government regulation of credit card companies in Korea is expected to benefit credit card ABS by limiting the growth in credit card receivables, thus lowering the risks in the .......

    News Round-up 14 November 2013

  • Creative structuring

    Semi-corporate, conduit-style CMBS diverging

    The European commercial real estate debt market has this year been characterised by its creativity. A divergence is emerging between semi-corporate and conduit-style CMBS transactions, however.

    The European CMBS market has seen 11 deals so far this year, versus three in 2012, with one or two more expected to launch by year-end - including an Italian transaction secured by the .......

    News Analysis 14 November 2013

  • Rise seen in non-traditional properties

    While traditional property types continue to represent the majority of collateral in US CMBS deals rated by Fitch, the agency notes that there has been a steady increase in the number of non-traditional properties over the last four years. In particular, the inclusion in pools of manufactured housing communities (MHC) and self-storage properties has increased of late.

    MHC in Fitch-rated .......

    News Round-up 12 November 2013

  • Apartment prices buck trend

    US apartment prices decreased by 0.2% in September - the first decline in nearly four years, according to the latest Moody's/RCA CPPI report. Apartment prices had been climbing steadily since the November 2009 trough, driven by ample liquidity and healthy fundamentals.

    The report also shows that the national all-property composite index increased by 1.8% in September, driven by a 2.6% .......

    News Round-up 12 November 2013

  • Hedge fund returns rising

    Hedge fund returns rose by an average of 1.5% in October, according to eVestment. The industry is on pace to return 8.6% on an annualised basis for the year, ahead of 2012's 7.5% increase.

    Credit strategies were up by 0.85% in October (and by 6.18% year to date), with a rise in deviation of returns observed. While the universe in .......

    News Round-up 12 November 2013

  • Islamic bank hires for European push

    Gatehouse Bank has appointed Natale Giostra as evp and head of real estate finance. He will be based in London and strengthen the Shariah-compliant investment bank's new focus on UK and European jurisdictions.

    Giostra joins from CBRE, where he led the UK debt advisory team. He has over a decade of debt origination and syndication experience, specialising in senior and .......

    Job Swaps 12 November 2013

  • Opportunities eyed in German NPLs

    CORPUS SIREO expects non-performing loans to generate a market potential in real estate asset management services worth more than €2bn in Germany over the next two years. Commercial real estate financing in the country currently stands at between €250bn-€300bn, about one-tenth of which has been securitised in CMBS.

    Given the sheer volume of the loans coming due, the redemption of .......

    News Round-up 11 November 2013

  • CMBS balloon payoffs slip slightly

    The percentage of US CMBS conduit loans paying off on their balloon date slipped last month to 68.6% by balance, says Trepp, having hit 74.5% - the highest level since December 2008 (SCI 4 October) - the month before. The payoff percentage for last month is still above the 12-month moving average.

    By loan count, 68.1% of loans paid off, .......

    News Round-up 7 November 2013

  • CMBS lending JV formed

    Walker & Dunlop has entered into a joint venture with an affiliate of a fund managed by Fortress Investment Group to form a CMBS lending platform. The new venture - Walker & Dunlop Commercial Property Funding - will provide first mortgage loans on all commercial property types and will originate high yield whole loans, mezzanine debt and preferred equity.

    The joint venture .......

    Job Swaps 7 November 2013

  • Japanese CMBS performance examined

    Fitch reports that 55% of its rated Japanese CMBS loans have defaulted over the past five years, although most of the notes previously rated triple-A have been paid in full. A total of 87% of defaulted loans defaulted at maturity.

    The agency cites downsizing of the operations of foreign securitised lenders, falling real estate prices and general lack of refinancing .......

    News Round-up 6 November 2013

  • Benchmark indices tweaked

    Barclays has amended its benchmark fixed income indices, after concluding its annual index review and governance process last month. The governance process has resulted in a number of rule and methodology changes that will take effect next year.

    Under the amendments, agency CMBS will become eligible for the US Aggregate and Global Aggregate Indices, as of 30 June 2014. Barclays .......

    News Round-up 6 November 2013

  • Broker beefs up in structured finance

    Sterne Agee has expanded its structured products offering with the addition of seven new staffers. Joining the company's New York office in various positions are: Katya Baron, David Jacob, Brendan Keane, Mike Krull, Dariush Pouraghabagher, John Rozario and John Woodruff.

    Jacob and Krull join Sterne Agee as co-heads of CMBS trading in the structured products group. The pair will focus .......

    Job Swaps 6 November 2013

  • Refi divergence expected for UK office

    Current high levels of refinancing risk will disparately impact the UK CMBS office sector, Moody's says. The majority of the UK CMBS portfolio - around 78% by loan balance - is expected to remain unaffected by refinancing risks, as it is made up of high quality assets located in the much sought-after London areas of the City, the West End .......

    News Round-up 5 November 2013
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