CMBS

  • CMBS delinquency rate drops

    At 9.03%, the Trepp CMBS delinquency rate last month posted its lowest reading in more than two years. The 47bp drop in the delinquency rate was the biggest one-month gain since Trepp began publishing the number in autumn 2009.

    All major property types saw their delinquency rates fall in April. Hotel and apartment loans led the pack, each with more .......

    News Round-up 2 May 2013

  • REIT beefs up CRE capabilities

    Annaly Capital Management has added several members to its commercial real estate platform. The additions will all be in place in time for Annaly's acquisition of CreXus Investment Corp, which will close on 23 May (SCI passim).

    Annaly's CRE platform will be headed by md Robert Restrick, who has been coo of CreXus for the past two years. He has .......

    Job Swaps 2 May 2013

  • Euro CMBS picks up as predicted

    SCI's PriceABS data shows 100 European CMBS BWIC line items for yesterday's session, as high secondary market volumes were maintained from earlier in the week. This is in stark contrast to the previous week, continuing the pattern of alternating activity in the ABS and CMBS sectors, which traders observed last week (SCI 26 April).

    Several bonds out for the .......

    Market Reports 2 May 2013

  • Spike seen in CMBS servicer activity

    After two months of relatively low liquidation volumes, April saw a spike in CMBS servicer activity, according to Trepp. The number of loans disposed with a loss in April ended up at 128. April's average loss severity came in at 45.8%, 6.2 percentage points higher than March's 39.65%.

    April liquidations totalled US$1.62bn, relative to the 12-month moving average of US$1.37bn. .......

    News Round-up 1 May 2013

  • CMBS loss severities highlighted

    Average US CMBS loss severities rose slightly to 50.5% last year, from 49.3% in 2011, according to Fitch's latest annual CMBS loss study. Unsurprisingly, most loan workouts were from the problematic 2007 vintage, with 239 of the 742 loans disposed of with losses coming from that vintage.

    CMBS special servicers resolved 1,219 loans totalling US$16.6bn in 2012, a nearly 25% .......

    News Round-up 1 May 2013

  • CMBS note sales due

    Around 20 CMBS loans, totalling US$161m in outstanding balance, are due to be put up for bid on Auction.com next month. The largest of these loans is Corridors I & II, which contributes US$29m of allocated balance to the TAG portfolio securitised in LBUBS 2005-C5, according to CMBS analysts at Barclays Capital. The properties had been listed last month as .......

    News Round-up 30 April 2013

  • Special servicing loan outcomes examined

    Most resolved US CMBS loans remain outstanding, while REO loans account for an increasing proportion of those still in special servicing. There is also mixed evidence as to the effect on recoveries of keeping loans in special servicing for protracted periods of time.

    US$9.9bn of US CMBS loans have been cured and transferred back to the master servicer without a .......

    News 30 April 2013

  • First 'recycled' Euro CMBS prepped

    At least six European CMBS transactions are expected to emerge over the next four to five months, all of which are likely to be backed by 'recycled' loan collateral from former European CMBS. One of these deals was announced on Friday - the €1.08bn Taurus 2013 (GMF1).

    The transaction securitises Gagfah's German multifamily Woba Dresden loan, which previously backed Windermere .......

    News Round-up 30 April 2013

  • CMBS appraisal reduction trends analysed

    Trepp has published a report examining how well appraisal reductions forecast actual CMBS loan losses. It suggests that almost US$35bn in US fixed-rate CMBS loans have been resolved with meaningful losses since 2010, for which the servicer was reporting an appraisal reduction in the month or two prior to final resolution.

    Trepp believes that many of these loans were refinancings .......

    News Round-up 29 April 2013

  • Office properties driving CMBS defaults

    The cumulative default rate for fixed-rate US CMBS increased to 13.6% in 1Q13, an 18bp rise from year-end 2012, according to Fitch. Office properties continue to drive the increase in defaults.

    Office loans, which have led defaults over the past two years, accounted for 55% of defaults by balance (42 loans). Defaulted office loans ranged in size from US$1.4m to .......

    News Round-up 29 April 2013

  • CMBS sponsor's merger agreement challenged

    Brookfield Office Properties and its affiliates have entered into a definitive merger agreement with CMBS sponsor MPG Office Trust. A newly formed fund dubbed DTLA Holdings will own both Brookfield's downtown Los Angeles offices assets and all the assets of MPG, although legal concerns have been raised.

    DTLA will be sponsored and managed by Brookfield, which will own 47% of .......

    Job Swaps 29 April 2013

  • TITN 2007-CT1 note EOD likely?

    Comprising 33 loans, down to 18 currently, Cornerstone Titan 2007-1 has the largest loan count among European conduit CMBS. The majority of the remaining loans is already in special servicing and the transaction is expected to be backed by a fully non-performing loan portfolio soon.

    The work-out proceeds and losses for the largest loan in the portfolio - Xanadu - .......

    News 26 April 2013

  • CMBS investors broadening horizons

    It has been a quieter week for European CMBS. Primary issuance still seems a fair distance away and secondary volumes have been down, although investors appear to be becoming more flexible in the paper they will buy.

    "It has been quite a funny week because - from having a good amount of CMBS last week, but not much ABS - .......

    Market Reports 26 April 2013

  • CMBS loan resolution timelines diverge

    The length of time between a US CMBS loan transferring to special servicing and ultimately being resolved depends largely on the workout strategy being pursued. The average time to modification has decreased recently, although the time to liquidation has been on the rise.

    There appears to be little variation between special servicers in the average amount of time it takes .......

    News 25 April 2013

  • Conduit leverage nearing inflection point

    Loans in US conduit CMBS transactions rated by Moody's in 1Q13 had an average Moody's loan-to-value (MLTV) ratio of 98%, remaining near the 100% MLTV mark for the third consecutive quarter. The agency considers 100% MLTV to be an inflection point, beyond which the probability of default ramps up sharply and extra credit enhancement is necessary to offset the additional .......

    News Round-up 25 April 2013

  • Patriarch adds CDO specialist

    Guillaume Fillebeen has been made vp at Patriarch Partners in New York. He was most recently at PF2 Securities Evaluations, where he co-headed the team responsible for CDO evaluations and structured finance litigation consulting.

    Fillebeen's areas of expertise are CDOs, CMBS and RMBS. Before joining PF2 he was associate at RBS, structuring CDOs backed by RMBS, and associate analyst at .......

    Job Swaps 24 April 2013

  • CMBS hedging importance underlined

    The bankruptcy of General Growth Properties (GGP) (SCI 13 May 2009) underlines the importance of investors hedging the credit risk of CMBS sponsors. Hedging the risk related to some of the recently issued US single-asset CMBS deals secured by retail - which have tenants that may be both included and excluded from the loan collateral - should especially be considered.

    News 24 April 2013

  • Investors encouraged to make split decisions

    The preference for US CMBS bonds being rated investment grade by at least two rating agencies has created a significant pricing gap for split-rated tranches, even when the underlying collateral characteristics do not warrant it. Loss coverage ratios could provide one indicator for investors looking to take advantage of rating changes.

    Comparing two sets of AM tranches across traded spread .......

    News 23 April 2013

  • Large loan CMBS collateral warning

    US large loan CMBS issuance has been robust, with over US$11bn expected to come to market in the first four months of this year, compared to US$11.2bn for all of 2012. But the growth is coming at the expense of the collateral and underwriting, suggests Fitch CMBS group head Huxley Somerville.

    "Large loan CMBS deals of late are coming to .......

    News Round-up 23 April 2013

  • UK-linked deals downgraded

    Fitch has downgraded 32 tranches and affirmed three tranches of 11 structured finance transactions that are credit-linked or have significant credit exposure to the UK sovereign. The agency has also maintained three tranches of Finance for Residential Social Housing (Fresh) on rating watch negative (RWN). The rating actions follow the downgrade of the UK's long-term issuer default rating (IDR) to .......

    News Round-up 23 April 2013

  • Walnut Hill loan watchlisted

    Morningstar has added the US$23.1m Walnut Hill Plaza loan, securitised in MLCFC 2006-3, to its watchlist as it was reported 30+ days delinquent with last month's remittance data. The loan is the twentieth largest remaining in the transaction, representing roughly 1.1% of the pool by unpaid principal balance (UPB).

    The loan is secured by a 295,722 square-foot retail property in .......

    News Round-up 23 April 2013
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