CMBS

  • CMBS starts week with steady session

    US CMBS BWIC volumes remained steady yesterday as spreads generally widened. Over US$200m was out for the bid, with SCI's PriceABS data showing a mix of names from the session and a number of covers.

    One of the trades from the session was the BACM 2005-2 A5 tranche, which was being talked at 80 at the .......

    Market Reports 1 October 2013

  • Multifamily origination expands

    Greystone has closed a CMBS transaction for US$38.75m on behalf of a suburban Cleveland-based multifamily property owner. The loan has a 10-year term, with only three years of interest at a rate of 2.35% over ten-year swaps. The firm says it closed the deal in 35 days and expects to close a number of additional deals before year-end.

    Launched earlier .......

    News Round-up 27 September 2013

  • Servicers switching strategies?

    With improving US commercial real estate fundamentals, commercial mortgage loan servicers have begun shifting gears to prepare for continued growth in lending. In particular, the industry has seen a number of mergers and acquisitions, as well as greater CMBS B-piece buyer participation.

    "Some servicers' business strategies are once again predicated on growth, as opposed to taking advantage of market distress," .......

    News Round-up 27 September 2013

  • Costly losses for German retail loans

    Performance has been weak for European CMBS loans secured by German retail properties. A Barclays Capital analysis of 69 securitised loans predicts total principal losses of €1.4bn for the affected deals, with an average loss severity of 26%.

    German retail properties back €5.3bn of loans across 27 European CMBS looked at by the Barclays Capital analysts. "Their performance has been .......

    News 27 September 2013

  • Servicer replacement approach outlined

    Fitch says it is increasingly being asked by new controlling class holders (CCH) to provide 'no downgrade letters' for the appointment of replacement special servicers, as losses continue to erode the control positions of legacy CMBS transactions. The agency notes that it will no longer provide individual rating confirmation letters with regard to these transfers as long as the transfer .......

    News Round-up 26 September 2013

  • Resolutions required

    CMBS debt forgiveness set to increase ahead of maturity wall

    As US commercial real estate liquidity has improved and prices have increased over the past year, CMBS special servicers have availed of a greater number of resolution options, with loan modifications playing a less significant role. However, there is growing concern that balloon risk is not being fully priced in as the 2016-2017 maturity wall approaches.

    CMBS analysts at Bank .......

    News Analysis 26 September 2013

  • US supply sees sharp up-tick

    US secondary market activity has picked up significantly across the board, with SCI's PriceABS archive listing over 700 line items for yesterday's session. Bid-lists in each of the ABS, CMBS and RMBS sectors boosted supply.

    While a wide variety of collateral types were out for the bid in the ABS sector, a sizeable list of student loan floaters .......

    Market Reports 25 September 2013

  • Servicer turnaround times improving

    US CMBS special servicer turnaround times are improving, S&P reports. If a servicer doesn't respond to a borrower consent request in a timely manner, it impacts borrower performance and could lead to loan defaults.

    The length of time it takes a servicer to respond to a consent request may be affected by factors outside its control, however - including the .......

    News Round-up 25 September 2013

  • New hire to boost CRE capabilities

    Jason Carney has joined Atalaya Capital Management in New York as the firm looks to expand into CRE financing. He joins as principal and has previously worked at Ridgeline Partners, Palatine Capital Partners, Silver Point Capital, Mission Capital Advisors and Third Avenue Management.

    .......

    Job Swaps 25 September 2013

  • CMBS recovery rates 'remain uncertain'

    Recovery rates for US CMBS loans in special servicing remain uncertain, Fitch says. The agency notes that the 66% recovery rate on loans liquidated during the first half of 2013 and the decline in volume of CMBS loans in special servicing are signs that the commercial real estate market is improving. The rise in commercial real estate values has supported .......

    News Round-up 25 September 2013

  • New York mods completed

    Iron Hound Management Co has completed over US$400m in CMBS loan modifications and refinancing on two New York-based properties, following its recent expansion into loan debt and equity placements. The transactions involved are COMM 2006-C8, GCCFC 2007-GG11 and CGCMT 2008-C7 (see SCI's loan events database).

    Iron Hound structured the pay-off of the US$106m defaulted loan and the placement .......

    News Round-up 25 September 2013

  • Independent credit advisory formed

    Rod Moulton has launched Euro Credit Risk (ECR) with headquarters in London and offices in Milan and Madrid. The firm will offer independent expertise to investors, hedge funds, investment banks, loan providers and other parties holding or acquiring legacy loan portfolios of secured, unsecured or commercial debt.

    Moulton serves as ceo, while George Patellis will serve as chairman. Moulton was .......

    Job Swaps 25 September 2013

  • NAIC scenario update discussed

    The NAIC is proposing to update its macroeconomic assumptions that it will use when valuing non-agency RMBS and CMBS at year-end. The changes are expected to be positive for both asset classes.

    For non-agency RMBS, the most significant change is that the NAIC's peak-to-trough home price assumptions are significantly more lenient than they were last year, Barclays Capital analysts note. .......

    News Round-up 24 September 2013

  • CMBS auctions scheduled

    US$480m of US CMBS assets are slated for sale on Auction.com next month. The assets include two properties behind the US$123m Southern California Portfolio loan, securitised in GCCFC 2007-GG9.

    The two properties are the Savi Tech Center and the Yorba Linda Business Park, which represent approximately US$79m in allocated balance. Based on the latest appraisal of US$99.5m from January, losses .......

    News Round-up 24 September 2013

  • Portfolio loss metrics introduced

    Fitch has introduced new measures in connection with its expectations for portfolio losses for EMEA structured finance and covered bond programmes. Dubbed portfolio loss metrics, the measures are designed to improve the transparency of the agency's opinions on expected asset pool performance and provide a consistent framework for comparison of asset portfolios and tranches.

    The aim is to provide complementary .......

    News Round-up 24 September 2013

  • Risk management specialist joins REIT

    Two Harbors Investment Corp has appointed Robert Rush as risk management md. He will report to Paul Richardson, who serves as partner and chief risk officer for Pine River Capital Management.

    Rush was previously at UBS in New York, where he worked in risk strategy, RMBS, CMBS and ABS roles as well as serving as head of CDO and esoteric asset .......

    Job Swaps 24 September 2013

  • CMBS loan resolutions tallied

    US CMBS special servicers resolved a total of US$17.09bn across 974 loans during the first half of 2013, according to Fitch. Of these, 58% were resolved through liquidation and 42% through modification.

    Of the US$9.88bn liquidated, US$4.07bn was liquidated with recoveries greater than 85%. Thirteen loans sized at over US$50m had recoveries greater than 85%. Six separate servicers performed the .......

    News Round-up 23 September 2013

  • GSA mod 'better than expected'

    A modification template has been released for the US$284m GSA Portfolio loan, securitised in JPMCC 2007-LD11. The loan transferred to special servicing in May 2012 after failing to pay off at its scheduled maturity date (see SCI's CMBS loan events database).

    The portfolio consists of nine office properties - which were appraised at US$217.5m in May - principally .......

    News Round-up 23 September 2013

  • Data centre CMBS discussed

    Retail co-location businesses are behind a move to begin securitising data centre contracts, Moody's reports in its latest ABS Spotlight publication. But the agency notes that while the contractual cashflows from data centres could be attractive to the securitisation market, the high rents these centres currently command are unlikely to continue in the long term.

    "Trends for the data centre .......

    News Round-up 20 September 2013

  • Better underwriting seen in tertiary CRE

    Morningstar has undertaken a study of over 90,000 US commercial real estate loans with origination dates between 1997 and 2008. The agency says that the performance history of these loans implies default risk endogeneity in tertiary market loan origination.

    As the CRE sector continues to recover, secondary and tertiary markets are becoming an attractive alternative to the standard core markets, .......

    News Round-up 20 September 2013

  • Euro CMBS reacts to taper delay

    The Fed's decision not to taper (SCI passim) - and the subsequent boost to risk assets - appears to have caught many market participants off-guard. European CMBS secondary activity was lifted by the tide, with many tranches trading yesterday.

    "Thursday was really busy after the 'no taper' announcement. I do not think desks were expecting it and we saw plenty .......

    Market Reports 20 September 2013
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