CMBS

  • 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

  • Post-crisis tweaks strengthen Japanese CMBS

    Moody's reports that, for the first time since the 2008-2009 financial crisis, no Japanese CMBS loan defaults have been recorded for a six-month period. The agency notes in its latest 'Structured Thinking: Asia Pacific' publication that the default rate of its rated CMBS loan portfolio significantly improved to zero in 1H13 from 43% in 2012 and 56% in 2011.

    In .......

    News Round-up 3 September 2013

  • Euro CRE growth prospects 'weak'

    Financial conditions in many European countries will remain unsupportive of commercial real estate collateral value growth, says S&P. Another year of very weak or negative growth is expected, which will affect European CMBS transactions.

    Europe's five largest economies will all be impacted; despite signs of a slight pick-up in demand of good quality secondary real estate in the UK, values .......

    News Round-up 29 August 2013

  • Sales put GSEs on course

    Since announcing that the GSEs would reduce their less liquid holdings by 5% this year, at least six large non-agency BWICs have been brought to market (SCI passim). This has put them on course to achieve their reduction targets, although they may have begun with the better-performing tranches.

    The lists have totalled US$6.1bn so far, with Fannie Mae accounting for .......

    News 28 August 2013

  • More REO assets to be auctioned

    There will be US$322m of distressed US CMBS loans out for bid through Auction.com in the last weeks of August through September, including the office property at 401 E. Ocean Boulevard, which backs a US$22m loan in LBUBS 2007-C1. The loan has been in REO since November and a December appraisal pegged the value of the property at US$17m.

    Barclays .......

    News Round-up 28 August 2013

  • Multifamily, hotels lead CMBS NOI growth

    Net operating income (NOI) has improved nearly 3% year-over-year for Fitch-rated US CMBS. This has been driven by stability in the multifamily sector and a continuing recovery for hotels.

    Servicer-reported NOI improved by 2.7% year-over-year in 2012, compared with just 0.8% in 2011 and a 0.9% decline in 2010. Multifamily NOI growth in 2012 was broadly positive, with states such .......

    News Round-up 27 August 2013

  • CMBS volume recovers as spreads widen

    At US$605m, US CMBS bid-list supply was relatively heavy yesterday, as the sector recovered from a mid-week dip. Spreads have continued to widen, however, as evidenced by SCI's PriceABS data.

    The bulk of the day's supply was concentrated in 2004- to 2007-vintage paper, although paper from 1998 and from post-crisis issuances was also circulating. In addition, PriceABS shows .......

    Market Reports 23 August 2013

  • Varied recovery for global CMBS

    A new S&P report highlights that as economic growth varies by region, so does the recovery of the CMBS market. Year-to-date through June the US and European CMBS markets were already ahead of 2012 CMBS issuance levels, while other regions - including Japan, Canada, Australia and Singapore - have seen limited to no issuance.

    In the first-half of 2013, US .......

    News Round-up 22 August 2013

  • LBUBS 07-C2 hit by further losses

    LBUBS 2007-C2 has been hit by a further US$568,000 of losses - despite no new property sales - which pushed interest shortfalls up to the class AM notes. This comes after a barrage of liquidations drove losses up to the AJ tranche last month (SCI 18 July).

    Barclays Capital CMBS analysts note that the losses are due to 'additional expenses' .......

    News Round-up 22 August 2013

  • Asset manager boosts CRE capacity

    Insight Investment has agreed an advisory relationship with DTZ Investment Management and appointed DTZ chairman Robert Peto to its commercial real estate investment committee. It has also hired Duncan Westbrook as a CRE analyst, who will join next month from Cushman and Wakefield, where he was part of the capital markets team for EMEA.

    Under the terms of the agreement .......

    Job Swaps 22 August 2013

  • CMBS credit degradation warning

    Historically low interest rates, improving real estate fundamentals and commercial real estate's role as a natural hedge against inflation have driven an increase in US CMBS issuance by 30% or more year-over-year since the depths of the financial crisis. But increased origination volume has meant that some slippage in credit standards has occurred, which has been observed across 2013 vintage .......

    News Round-up 20 August 2013

  • Higher CRE prices sought in Japan

    Moody's says that higher property prices in Japan - resulting from the government's policies of emphasising GDP expansion and higher inflation - would facilitate the refinancing of CMBS loans to repay investors and improve recovery rates for defaulted loans. Although normalised interest rates that would be higher than today's rates are a negative for refinancing, the agency believes that refinancing .......

    News Round-up 20 August 2013

  • Marginal decline for CRE CDO delinquencies

    The overall delinquency rate for CRE CDOs fell marginally to 11.7% from 11.8% last month, according to Fitch's latest index results for the sector. Only three new delinquent assets were reported in July, while six assets were removed from the index.

    New delinquencies included two recently matured balloon loans and one security with a new interest shortfall. The removed assets .......

    News Round-up 20 August 2013

  • Structured finance partner named

    Squire Sanders has recruited Mark Thomas as partner in its financial services practice group in London. He was previously head of structured finance at Addleshaw Goddard. His practice focuses on advising on developing structured loan products, loan portfolio sales and acquisitions, restructuring - particularly relating to ABS and real estate finance transactions - and the provision of finance to banks .......

    Job Swaps 19 August 2013

  • Multifamily in focus during summer slow-down

    August is traditionally a quiet month for the secondary markets, but activity has been picking up in certain sectors. In particular, German multifamily CMBS and Spanish RMBS has piqued the interest of investors.

    "Activity in European CMBS has picked up over the last week or so. Markets are always quieter during the summer holidays, but we have seen increased buying .......

    Market Reports 16 August 2013

  • Legacy AMs, AJs attract attention

    US CMBS BWIC volume reached around US$600m yesterday, with SCI's PriceABS data revealing a number of successful and unsuccessful trades from the session. Many of the names out for the bid were legacy AM, AJ and mezz bonds, with spreads generally widening.

    "Overall, spreads on legacy super seniors edged wider by two or so basis points. The benchmark .......

    Market Reports 15 August 2013

  • More GSE RMBS sales anticipated

    Quarterly statements released last week by Fannie Mae and Freddie Mac show that CMBS accounts for a disproportionate amount of sales from their legacy holdings so far, at 55%. While the RMBS portfolios are bigger at both GSEs, the proportion of sales coming from them has been smaller, at about 25% for Freddie Mac and 45% for Fannie Mae.

    Barclays .......

    News 15 August 2013

  • Freddie K-Cert A1s look attractive

    Five-year average-life first pay FREMF issuance spreads have widened dramatically over the last three months. The latest A1 tranche priced at swaps plus 68bp, a level which makes the paper very competitive with CMBS 3.0 and PAC CMOs with similar durations.

    Spreads for FREMF 2013-K27 when it came to the market in May were swaps plus 31bp for the A1 .......

    News 15 August 2013

  • US CMBS downgrades declining

    Fitch notes a stabilisation of trends in outstanding and newly issued US CMBS versus 1Q13. The majority of outstanding Fitch-rated investment grade classes maintained stable rating outlooks, while second-quarter downgrades declined over those in the first quarter.

    "CMBS downgrades will continue to decline due to fewer loans transferring to special servicing and fewer delinquencies," comments Fitch md Mary MacNeill. Most .......

    News Round-up 15 August 2013

  • CMBS ratings probe opened

    The US SEC is believed to have opened an investigation into the consistency of S&P's CMBS rating methodology. The move is said to be related to when the agency pulled assigned ratings on the US$1.5bn GSMST 2011-GC4 transaction just over two years ago, prompting Goldman Sachs and Citi to abandon their deal after it was placed with investors (SCI 28 .......

    Job Swaps 14 August 2013

  • US CRE 'performing strongly'

    All commercial real estate sectors performed strongly in 2Q13 and are expected to continue doing so, according Moody's latest US CMBS and CRE CDO surveillance review.

    "Despite some muted economic indicators, commercial real estate property markets benefitted from a limited amount of construction, as well as positive absorption," comments Michael Gerdes, md and head of Moody's US CMBS & CRE .......

    News Round-up 14 August 2013
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