CMBS

  • 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

  • Model integration issues persist

    Principia Partners has released the findings of a survey focusing on ABS, MBS and CDO investors' use of cashflow and waterfall models. The results show that while the growing commoditisation of issuer reporting, collateral performance and loan level data has benefitted the modelling of cashflows, it is not enough to lighten the burden investors carry when building and managing cashflow .......

    News Round-up 18 September 2013

  • Innkeepers paid down

    September remittances indicate that the US$656m Innkeepers portfolio - securitised in LBUBS 2007-C6 and LBUBS 2007-C7 - has paid down. The move was widely expected, given that the asset has been open for prepayment since its December 2011 modification and owner Cerberus was shopping for a new loan in June (see SCI's CMBS loan events database).

    The large .......

    News Round-up 18 September 2013

  • Week starts with WBS flurry

    A number of UK whole business securitisation bonds were out for the bid yesterday. Some noteworthy credit tenant-linked CMBS were also seen in secondary, with SCI's PriceABS service recording covers ranging from 113 to 280 for the names.

    Among the WBS bonds circulating in yesterday's session were a trio of pub names. The tightest cover among them was .......

    Market Reports 17 September 2013

  • Real estate group builds sales team

    Carlton Group has formed an international investment sales team to provide investment sales services to clients worldwide. The group will focus on Manhattan and major cities throughout the US and Europe, with a focus on assignments of US$100m or more.

    Carlton chairman Howard Michaels will lead the team with Carlton Hospitality president John Bralower and Javier Beltran, who runs Carlton's .......

    Job Swaps 17 September 2013

  • Further dip forecast for CMBS late-pays

    US CMBS late-pays fell by 10bp in August to 6.68% from 6.78% a month earlier, according to Fitch's latest index results for the sector. The agency notes that the delinquency rate is poised for another dip once an impending modification of the US$678m Skyline Portfolio loan is finalised (see SCI's CMBS loan events database).

    The Skyline Portfolio is .......

    News Round-up 16 September 2013

  • RMBS reshuffle targets trading focus

    Amherst Securities is changing its focus to concentrate more on facilitating day-to-day trading. To that end, Lidan Yang and Brian Landy will report directly to the non-agency and agency MBS desks, respectively, replacing departing head of RMBS strategy Laurie Goodman.

    Yang and Landy will be responsible for producing material for internal and external distribution with a greater focus on issues, .......

    Job Swaps 13 September 2013

  • Apartment prices take off

    Apartments in New York and San Francisco are the hottest property sector in major markets, each having topped its previous peak by more than 20%, according to the latest Moody's/RCA CPPI report. Conversely, core commercial properties in Los Angeles and Chicago lag well behind, more than 20% below their respective peaks.

    Los Angeles and Chicago commercial prices have each recovered .......

    News Round-up 12 September 2013

  • Intermediary initiative

    Nassar Hussain, managing partner at Brookland Partners, answers SCI's questions

    Q: How and when did Brookland Partners become involved in the CMBS market?
    A:     Brookland Partners has been lead financial adviser on over 25 CMBS transactions totalling in excess of €22bn since our launch in 2009. We act as financial adviser to government agencies, financial institutions, private equity firms, property companies and the vast majority of .......

    Provider Profile 12 September 2013

  • B-piece retention issues remain

    The re-proposed US risk retention rules (SCI 29 August) have been welcomed by CMBS market participants for eliminating the premium capture cash reserve account (PCCRA) provision. How risk retention for large loan and single-borrower deals should be satisfied remains unclear, however.

    The requirement that 5% of the fair value of a CMBS be retained for a period of five years .......

    News 11 September 2013

  • Bush Terminal sees second modification

    The Bush Terminal loan - securitised in GCCFC 2007-GG11 and CGCMT 2008-C7 - has been modified again, after superstorm Sandy devastated the buildings. The loan received a US$190m/US$110m A/B split modification in April 2012 (see SCI's CMBS loan events database).

    Damage from Sandy resulted in US$39m in initial insurance claims. According to the modification commentary, Schron recognised an .......

    News 11 September 2013

  • REC 6 insolvency to trigger copycats?

    An insolvency event has been declared for Alburn Real Estate Capital (REC 6), after the directors of the issuer determined "it is more likely than not" that the CMBS will be unable to pay its debts as they fall due. A number of other European CMBS deals are now expected to follow suit, with the aim of switching the waterfall .......

    News 10 September 2013

  • CMBS pay-offs dip

    The percentage of US CMBS loans paying off on their balloon date registered 72.1% last month, according to the latest Trepp pay-off report. This figure is down two points from 74.1% in July, which was the highest reading in almost five years. August's rate is the second highest level during that period.

    At 72.1%, the August pay-off percentage is well .......

    News Round-up 10 September 2013

  • CMBS loan liquidations down

    US CMBS loan liquidations totalled US$1.09bn last month, according to Trepp. This compares to July's US$2.05bn and the 12-month moving average of US$1.32bn.

    August loss severity came in at 40.9%, down from July's reading of 43.63% and below the 12-month moving average of 43.44%. The number of loans liquidated during the month was 90, which resulted in US$444.29m in losses .......

    News Round-up 10 September 2013

  • CMBS loss severity up

    The weighted average loss severity for all loans backing US CMBS that liquidated at a loss was 41.5% in 2Q13, up from 40.7% in the previous quarter, Moody's reports. Excluding loans with losses of less than 2%, the weighted average loss severity was 53.5%, up from 52.9% the previous quarter. Loans with losses of less than 2% account for 23% .......

    News Round-up 10 September 2013

  • CMBS recovery rate dips

    The recovery rate on liquidated US CMBS loans suffered somewhat of a set-back last quarter, dipping to 60.5% for 2Q13 compared to 71.4% in 1Q13, according to Fitch's latest quarterly index results for the sector. Thirty CMBS loans saw losses of 95% or more last quarter, with 16 of them seeing losses of 100% or more.

    CMBS loans in special .......

    News Round-up 9 September 2013

  • Conduit concerns for US CMBS

    US CMBS issuance has now reached US$56bn, surpassing the full-year issuance in 2012 of US$48bn. Conduit transactions account for about US$36bn of the total and S&P notes that although average credit metrics have held steady on a quarter-by-quarter basis they are riskier than a year ago.

    The rating agency says slipping loan standards will lead to higher eventual loss rates .......

    News Round-up 6 September 2013

  • Office rebound boosts UK CMBS

    An inflection point appears to have been reached in the UK secondary commercial property market, with office leading the way. The upturn in sentiment could result in several positive CMBS transaction outcomes.

    Deutsche Bank European CMBS analysts calculate that sales from UK CMBS office portfolio liquidations have averaged a 14% increase on their last valuations, with a net yield of around .......

    News 5 September 2013

  • REIT names new cfo

    AG Mortgage Investment Trust has appointed Brian Sigman as cfo, replacing Frank Stadelmaier who will continue to serve as a director. Sigman also becomes the REIT's principal accounting officer and treasurer.

    Sigman was previously cfo at Newcastle Investment Corp and served as md of Newcastle's external manager, an affiliate of Fortress Investment Group. Before joining Newcastle he was a senior .......

    Job Swaps 5 September 2013

  • CMBS delinquencies hit three-year low

    The Trepp US CMBS delinquency rate fell in August for the third consecutive month. The rate dropped by 10bp to 8.38%, the lowest reading in three years, and has now fallen by 69bp over the last three months and 175bp over the last year.

    About US$2.5bn of loans became newly delinquent in August, which was slightly higher than the July .......

    News Round-up 4 September 2013

  • STACR to receive NAIC designation?

    NAIC appears to have abandoned its proposal to alter the process used to derive ratings for RMBS and CMBS positions held by insurance companies, which would have reduced NAIC breakpoints for most bonds taking losses or interest shortfalls (SCI 17 April). The organisation is now said to be examining the accounting and reporting framework for Freddie Mac's recent STACR deal .......

    News Round-up 3 September 2013
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