CMBS

  • 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

  • Hotel price appreciation analysed

    US major market hotel prices have risen by 19.2% over the last two quarters, more than double the 7.9% rise in non-major market hotel prices, according to the latest Moody's/RCA Commercial Property Price Indices (CPPI). Apartment prices increased by 0.7%, while core commercial prices were up by 2.6%. The national all-property composite index increased by 2.1% in June.

    Major market .......

    News Round-up 14 August 2013

  • PPIP programme draws to an end

    The current quarter marks the effective end of the PPIP programme, as all the funds have been wound down and all US Treasury debt and equity repaid. The last fund to sell its assets was Oaktree, which invested primarily in CMBS securities.

    The Treasury had invested US$6.2bn in equity capital in the PPIP programme, along with US$12.4bn of debt. The .......

    News Round-up 13 August 2013

  • ORIX sales drive fall in CMBS late-pays

    US CMBS late-pays fell by 40bp last month to 6.78% from 7.18% in June, the largest drop since the end of the recession, according to Fitch's latest monthly index results for the sector. Leading the fall were ORIX asset sales from LBUBS 2007-C2, which alone accounted for US$759m of dispositions (SCI 18 July). The delinquency rate is now 2.23 percentage .......

    News Round-up 12 August 2013

  • Expected losses upped for FLTST 3

    All loans securitised in the Fleet Street Finance 3 CMBS are now in default, following last week's transfer into special servicing of the €49.4m Saxony loan. Barclays Capital securitisation strategists expect the deal to suffer additional principal losses of €108m-€118m, with an increased proportion likely allocated to class B noteholders.

    The final recovery for the Orange loan was last month .......

    News 8 August 2013

  • Multifamily bridge programme launched

    Walker & Dunlop has launched a large loan bridge programme, through which it will originate adjustable-rate loans on multifamily properties that do not currently qualify for permanent financing but will be candidates for funding through Fannie Mae, Freddie Mac, HUD, CMBS or life company channels once stabilised or repositioned. The programme is funded with capital from a large Canadian institutional .......

    News Round-up 7 August 2013

  • Bifurcated AJ prices observed

    US CMBS AJ prices appear to be bifurcating in the wake of recent principal write-downs hitting two originally triple-A rated legacy bonds for the first time (SCI passim), according to Interactive Data. Generally, higher evaluated prices are observed for bonds with higher LCR and lower special serviced percentages, and vice versa. While this relationship held true for most bonds with .......

    News Round-up 6 August 2013

  • Currency swap criteria updated

    Fitch has updated its criteria for rating currency swap obligations of an SPV in structured finance transactions and covered bond programmes. The updated criteria are not expected to result in rating actions.

    The key driver for the rating of swap obligations is the rating of the related reference notes. SPV obligations to swap counterparty and noteholders should and usually rank .......

    News Round-up 6 August 2013

  • Asset manager beefs up

    Douglas Charleston joined TwentyFour Asset Management last month as a portfolio manager. He has seven years of ABS structuring and fund management experience, most recently at Lloyds.

    Another recent addition to the team is Luca Beldi, who has been recruited as an analyst. He is a Masters graduate in economics from the University of Milan.

    In addition, the firm's heads .......

    Job Swaps 6 August 2013

  • CMBS pay-offs hit five-year high

    The percentage of US CMBS loans paying off on their balloon date registered 74.1% last month, the highest reading in almost five years, according to Trepp. December 2008, which saw 84.9% of loans paying at maturity, was the last month with a higher level.

    The July reading was more than 15 points better than June's 58.5% and is well above .......

    News Round-up 5 August 2013

  • AS tranches 'thinning'

    As US CMBS triple-A credit enhancement increases due to a combination of increased leverage and concentration, Fitch reports that the junior triple-A class size is 'thinning'. If junior triple-A credit enhancement (CE) continues to increase and the super-senior triple-A level remains at a 30% attachment point, the loss given default may grow more rapidly than investors expect, the agency warns.

    News Round-up 5 August 2013

  • Counterparty conundrums

    Investors, issuers adapting to swap-related dilemmas

    Given the difficulty of replacing counterparties and expense of posting collateral for cashflow securitisations, high volumes of swap-related rating agency confirmations look set to continue, potentially eroding investor protections in their wake. At the same time, investor acceptance of AA/A rated senior paper is growing, together with appetite for deals without embedded derivatives risk.

    Peter Nowell, head of ABS trading .......

    News Analysis 2 August 2013

  • CMBS 2.0 term defaults 'unlikely'

    US CMBS 2.0 term defaults are unlikely as long as the economy continues to strengthen, according to the latest 'Fitch Voice: Structured Finance' publication. While CMBS loans that come due in 2022 and 2023 will likely do so in a higher rate environment, overall they have been reasonably underwritten.

    Should the broader economy reverse direction, any downgrades to CMBS 2.0 .......

    News Round-up 2 August 2013

  • Watchlist criteria released

    CREFC Europe has released Watchlist Criteria for Europe, which forms part of the European Investor Reporting Package (E-IRP). The Watchlist Criteria aims to help improve clarity in the identification of loans to be placed on the Watchlist by allowing the application of pre-determined standards.

    Watchlists are compiled by servicers based on the criteria defined by CREFC Europe and include comments .......

    News Round-up 2 August 2013

  • CMBS delinquencies nudge 2010 lows

    For the third time in the last four months, the Trepp CMBS delinquency rate fell significantly. The rate dropped by 17bp in July, bringing the delinquency rate for US CMBS loans to 8.48%, the lowest reading since the September 2010 rate of 8.45%. The Trepp delinquency rate is now 123bp lower than where it began the year.

    The meaningful decline .......

    News Round-up 2 August 2013

  • XA tiering opportunities touted

    Generic CMBS 3.0 XA tranche prices have widened by 75bp from their early-May tights of swaps plus 110bp, underperforming corresponding 10-year dupers that have sold off by only about 25bp. While remaining positive on these triple-A rated senior IOs, Barclays Capital CMBS analysts recommend paying close attention to some emergent trends that could cause tiering between some individual XA tranches.

    News 1 August 2013

  • TRIPRA impact analysed

    Fitch has released a report discussing some potential economic and credit rating effects for the property/casualty insurance industry and CMBS market if the Terrorist Risk Insurance Program Reauthorization Act (TRIPRA) is not renewed or coverage substantially declines. Legislation was recently introduced in the US House of Representatives to extend the Act, which expires on 31 December 2014.

    Over the last .......

    News Round-up 1 August 2013

  • MS beefs up CMBS research

    Richard Hill has joined Morgan Stanley's US securitised products group to lead CMBS and CRE debt research, reporting to Vishwanath Tirupattur. He was previously director of CMBS and CLO strategy at RBS.

    .......

    Job Swaps 1 August 2013

  • CMBS liquidations jump

    Liquidated US CMBS loan volume jumped this month, with a concurrent drop in loss severity. July liquidations totalled US$2.05bn, the second highest liquidation volume since Trepp began tracking the number in January 2010 and well above the 12-month moving average of US$1.35bn.

    The highest monthly liquidated volume was in November 2011, with US$2.1bn in liquidated loans. While 218 loans were .......

    News Round-up 31 July 2013

  • Special servicing transfer agreed

    Berkadia Commercial Mortgage is set to transfer to KeyCorp Real Estate Capital Markets substantially all of its third-party commercial mortgage special servicing portfolio. Moody's has determined that the transfer will not result in a downgrade or withdrawal of the current ratings on any class of certificates it rates in the impacted CMBS deals. The move follows a separate sub-servicing agreement .......

    Job Swaps 31 July 2013

  • Structured products head hired

    Western Asset has recruited Anup Agarwal as head of structured products, based in Pasadena. He has 16 years of industry experience and was most recently with Stark Investments.

    At Stark, Agarwal was head of consumer finance, responsible for managing agency and non-agency MBS, ABS, CMBS and CDOs, as well as an opportunistic mortgage fund. Prior to his four years at .......

    Job Swaps 30 July 2013
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