CMBS

  • 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

  • TRACE expansion proposed

    FINRA last week filed a proposed rule change with the US SEC to amend the TRACE dissemination protocols to include additional ABS transactions and to reduce the reporting periods for such securities. The agency also proposes to re-name as 'securitised products' the broad group of securities currently defined as 'asset-backed securities' and to redefine the term asset-backed security more narrowly. .......

    News Round-up 5 November 2013

  • German MFH correction expected

    The high volume of sales of German multifamily housing (MFH) blocks this year indicates that investor demand remains strong, even as prices per square-metre continue to rise and prime yields drop below 4.5%. While low yields provide investors with little protection against interest rates normalising, Fitch's says its analysis of MFH CMBS transactions incorporates a sizeable buffer, which should help .......

    News Round-up 4 November 2013

  • CWCapital note sales due

    CWCapital Asset Management has disclosed plans to sell US$665m of CMBS assets through Auction.com on 9-11 December, in addition to the US$2.6bn REO liquidation. The forthcoming note sales appear to be distributed across multiple deals, although COMM 2006-C7 and MLCFC 2007-5 account for nearly 40% of the assets, according to Barclays Capital estimates.

    Among the largest loans out for the .......

    News Round-up 4 November 2013

  • CRE partner recruited

    Paul Hastings has hired commercial real estate specialist David Ryland as a partner in its London office. He joins the firm from SJ Berwin, where has was also a partner.

    .......

    Job Swaps 4 November 2013

  • Origination exec promoted

    Barclays Capital has promoted Martin Attea to co-head of securitised products origination in its Americas global finance and risk solutions group. He will work alongside Cory Wishengrad and report to head of DCM Jim Glascott and head of global securitised products trading Scott Wede.

    Wishengrad will continue to lead the esoteric group, reporting to head of global leveraged finance JF .......

    Job Swaps 4 November 2013

  • CMBS delinquencies drop again

    For the first time since early 2010, the Trepp US CMBS delinquency rate fell below the 8% level in October, marking the fifth consecutive month of improvement. The rate dropped by 16bp over the course of the month, bringing the 30+ day delinquency rate to 7.98%. The percentage of loans seriously delinquent now stands at 7.69%.

    Almost US$1bn in CMBS .......

    News Round-up 1 November 2013

  • SFR securitisation debuts

    The much-anticipated debut single-family rental (SFR) securitisation has hit the market, with the senior tranche carrying triple-A ratings from three rating agencies. The US$479.14m Invitation Homes 2013-SFR1 is secured by the income streams and values from 3,207 leased properties owned by Blackstone subsidiary Invitation Homes.

    The transaction comprises six classes of notes: US$278.7m class As rated Aaa/AAA/AAA (Moody's, Morningstar and .......

    News Round-up 1 November 2013

  • Class A EoD for Euro CMBS

    The class A notes of the Titan Europe 2006-3 CMBS experienced an interest shortfall last week, constituting a note event of default (see SCI's CMBS loan events database). Class A notes have not previously experienced an interest shortfall in such a large European CMBS.

    The event of default at the issuer level was confirmed on 30 October, following .......

    News 1 November 2013

  • Structured credit desk expands

    Cantor Fitzgerald Europe has further expanded its European structured credit desk with the appointment of Sheil Aggarwal as md. Based in London, he will focus on ABS, MBS and CLOs.

    Aggarwal joins Cantor from Pamplona Credit Opportunities, where he was a partner (SCI 25 June 2008). Before that, he was a senior md at Bear Stearns, overseeing the trading and .......

    Job Swaps 31 October 2013

  • Auction exposure quantified

    Morgan Stanley CMBS strategists have decoded three common attributes of the 67 loans included in the upcoming CWCapital Asset Management auction (SCI 16 October), which they assert serve as a road map for special servicer behaviour going forward. The loans are primarily REO, securitised in deals with higher losses and of a larger size.

    Of the properties up for sale .......

    News 31 October 2013

  • Retention refinements recommended

    CRE Finance Council and SIFMA have submitted comments to federal regulators in response to the re-proposed rulemaking on credit risk retention. The associations express support for many of the changes that have been made to the proposed rules, but believe that further refinement of the rules is required.

    SIFMA notes that the re-proposal represents a significant improvement over the original .......

    News Round-up 31 October 2013

  • RMBS vet to lead agency effort

    Brian Cohane has joined Société Générale as an agency RMBS trader, reporting to head of MBS trading Tae Park. He will lead the agency desk in New York, which has been launched to complement the bank's existing RMBS and CMBS trading capabilities. Cohane has previously served as head of RMBS trading at UBS and at its affiliate Dillon Read Capital .......

    Job Swaps 31 October 2013

  • Local heroes

    Private placements revitalising Asian securitisation

    A pair of innovative structured financings closed this month that demonstrate the growing appetite for privately-placed local currency bonds among Asian investors. The deals are expected to help revitalise the securitisation market in the region.

    The two transactions are the US$250m-equivalent Courts ABS - originated by Courts Asia via HSBC - and the S$300m Orchis Capital condominium-backed deal, which was .......

    News Analysis 30 October 2013

  • PROUL 1 basis highlighted

    The sale of three assets from the LCP Proudreed CMBS portfolio will result in a £9.17m partial prepayment of the transaction at the November IPD (see SCI's loan events database). This is the latest development in a series of recent actions that suggest the borrower is preparing to refinance the larger of the two loans backing the deal .......

    News 29 October 2013

  • Spread tightening boosts AMs, AJs

    US CMBS spreads narrowed last week, with the GSMS 2007-GG10 A4 bond ending Friday at 164bp over swaps. The big gainers were AM and AJ tranches, with plenty of covers for both types of bonds observed yesterday, as spreads continue to grind tighter.

    For the AMs, SCI's PriceABS data shows that BACM 2006-2 AM was covered in the .......

    Market Reports 29 October 2013

  • Decline in CMBS default rate continues

    Fitch's cumulative default rate for US fixed-rate CMBS declined by 2bp in the third quarter to 13.7%, as new issuance remains healthy and defaults stabilise. During 3Q13, 93 loans totalling US$1.1bn were newly defaulted, compared to 97 loans (US$1.4bn) in the previous quarter and 119 loans (US$2.2bn) in 3Q12.

    Larger balance loans have defaulted less, according to Fitch, with 82 .......

    News Round-up 29 October 2013

  • CMBS collateral quality 'barbelled'

    A decline in Moody's debt service coverage (MDSCR) has led to an increase in conduit credit risk in the US CMBS transactions the agency rated in Q3, it reports. MDSCR fell to1.59 in the third quarter from 1.68 in the second quarter, and is expected to continue falling in the fourth quarter.

    "The levels of debt service coverage are still .......

    News Round-up 28 October 2013

  • SASB performance meets expectations

    US single-asset and single-borrower (SASB) CMBS performance is on track to meet expectations for cumulative lifetime defaults, according to a review undertaken by Moody's. Approximately 95% of 4- to 5-year-old SASB tranches originally rated Aaa and more than half of those originally rated in lower investment grade categories stayed within their original rating category through the end of 2012.

    Part .......

    News Round-up 25 October 2013

  • JCP distress unlikely to impact CMBS

    If JC Penney's financial challenges result in the closure of a portion of its stores, some malls would likely struggle to replace the retailer, Fitch says. The agency does not expect such a move to impact rated CMBS deals, however, because they represent relatively small amounts of those transactions.

    One mall that could struggle if its JC Penney anchor were .......

    News Round-up 25 October 2013

  • Change afoot for Freddie K-series

    Losses on even the most recent Freddie Mac K-series CMBS notes are expected to be low, despite signs of weakening underwriting quality. There are also signs that issuance for the sector may have peaked in 2Q13, with higher rates and the FHFA mandate to reduce originations expected to drive volumes lower over the coming months.

    About US$22bn of multi-borrower deals .......

    News 23 October 2013
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