CMBS

  • UNITE refi prepped

    HSBC and Lloyds are in the market with a fixed-rate UK CMBS backed by student accommodation. The £380m UNITE (USAF) II transaction will fund the repayment of a UNITE subsidiary's debt, including the refinancing of the existing UNITE (USAF) CMBS notes.

    Fitch and S&P have assigned a preliminary rating of single-A to the single tranche of notes. The loan is .......

    News Round-up 3 June 2013

  • Weak recourse provisions critiqued

    Loan documents for a number of recent CMBS contain revisions to recourse liability provisions that are credit negative for CMBS, according to Moody's. These provisions define the lender's ability to pursue both the borrower and the borrower's deep-pocketed controlling sponsor, if the borrower commits any 'bad boy' acts.

    Bad boy recourse liability provisions dissuade and penalise certain acts of the .......

    News Round-up 3 June 2013

  • CMBS liquidation rate reverts

    US CMBS liquidation volume fell back below US$1bn in May, according to Trepp, although loss severity moved up on a majority of losses in the greater than 2% category. May liquidations totalled US$849.2m, relative to the 12-month moving average of US$1.3bn.

    The number of loans disposed with a loss in May came in at 82, down from 128 in April. .......

    News Round-up 3 June 2013

  • Pace of loan resolutions slows

    The specially serviced US CMBS loan universe fell to US$64.2bn as of 31 March, according to Fitch. US$8bn in loans were transferred out of special servicing in the first quarter compared to US$12bn in 4Q12, while the volume transferring into special servicing in 1Q13 was roughly US$4bn.

    "The pace of CMBS loans resolving slowed noticeably last quarter, but on a .......

    News Round-up 31 May 2013

  • Volatility spooks Euro CMBS market

    After a brief flurry of activity, the European CMBS market has once again quietened down this week. Broader market volatility appears to be keeping investors on the sidelines, although positive developments within CMBS are providing encouragement.

    "With the bank holiday, half term and some volatility in broader equity and credit markets, investors have been handed a good excuse to take .......

    Market Reports 30 May 2013

  • New name for investment firm

    UCM Partners is rebranding as Semper Capital Management, effective from 1 June. The firm's senior management, investment personnel and ownership remain unchanged.

    The firm specialises in RMBS, CMBS and ABS, offering investors access to a range of securitised debt investment platforms, from private absolute return to public index-based strategies.

    .......

    Job Swaps 30 May 2013

  • CRE tap turning back on

    UK banks - which remain in a process of rehabilitation - continue to provide new lending into the commercial real estate sector, but in constrained amounts. While conditions are expected to improve, S&P suggests that the market for bank credit is unlikely to return to its 2007-2008 heights.

    In the aftermath of the financial crisis, banks - in the UK .......

    News Round-up 29 May 2013

  • APAC ratings remain stable

    Fitch reports that Asia Pacific (APAC) structured finance (SF) tranches remained largely stable in 2012, with over 95% of tranches maintaining their ratings or being paid in full (PIF), compared with 89% in 2011. As in previous years, most downgrades (92.8%) were made to Japanese transactions, three-quarters of which were CMBS.

    Ratings from two credit-linked notes referencing a Japanese government .......

    News Round-up 28 May 2013

  • CreXus merger completes

    Annaly Capital Management has completed its acquisition of CreXus Investment Corp (SCI 18 April). Annaly's commercial real estate business will now operate under the name Annaly Commercial Real Estate Group.

    Under an agreement and plan of merger dated 30 January, CreXus was merged with a newly formed CreXus subsidiary in a transaction in which Annaly became the sole stockholder of .......

    Job Swaps 28 May 2013

  • REIT liquidity highlighted

    Changes in the availability, pricing and underwriting stringency of CMBS financing could affect REITs directly and indirectly, according to Fitch.

    "In the near term, the CMBS financing market's acceptance of pro forma assumptions may be indicative of increased risk appetites, improving the already strong liquidity of REITs and driving additional cap rate compression in secondary asset classes/markets that are more .......

    News Round-up 24 May 2013

  • Mall performance examined

    With interest rates averaging 3%-4% on regional mall securitisations, retail REITs have been very active in the CMBS space. But as attractive as these rates are, financing in the unsecured REIT market has also been strong, according to S&P.

    The agency notes that in deciding which debt market to access, the upcoming mortgage maturity, amount of origination proceeds and investor .......

    News Round-up 24 May 2013

  • Pro forma swipe rebutted

    In assessing the value of a CMBS property, using sustainable income is a better approach than relying on only current (in-place) leases or pro forma income, Moody's suggests. The agency's comment comes after Fitch published an unsolicited comment on the CGCMT 2013-375P deal (SCI 14 May).

    "Of the methods for determining the income used to value properties from a credit .......

    News Round-up 23 May 2013

  • CMBS softening likely post-GSE sale

    Fannie Mae is due to sell a US$2.2bn list of legacy CMBS today. Deutsche Bank CRE debt analysts note that the move represents not only the largest transfer of risk since last year's MAX and WAVE CDO liquidations (SCI 2 May 2012), but also the first widely distributed bid-list to include multifamily collateral.

    The bid-list comprises 17 senior bonds - .......

    News 23 May 2013

  • New challenges for Euro special servicers

    New challenges are emerging for special servicers working out European CMBS loans with borrowers undergoing insolvency proceedings. Recent court rulings in France and Germany have raised questions over not only the level of control the CMBS lenders have, but also the seniority of their claims within the insolvency estate of their borrowers.

    In France, safeguard (or pre-insolvency) proceedings provide insolvency-law .......

    News Round-up 22 May 2013

  • REIT beefs up in operations

    Annaly Capital Management has named Glenn Votek as chief administrative officer. He brings over 20 years of financial and operational experience, with particular expertise in risk management, capital raising, liability management and regulatory oversight. He will report to Kevin Keyes, Annaly's president.

    Votek joins from CIT Group, where he was an evp and treasurer since 1999 and president of consumer .......

    Job Swaps 21 May 2013

  • Senior CMBS analyst appointed

    Ed Barrett has left Morningstar to take up a role as CMBS director at Kroll Bond Rating Agency. He was structured credit svp at Morningstar and has also worked as a portfolio mananger at Aberdeen Asset Management and as a senior analyst at Deutsche Asset Management and at GMAC Commercial Mortgage Corporation.

    .......

    Job Swaps 20 May 2013

  • Equitable subordination risk rises

    The risk of equitable subordination has arisen for the first time during insolvency proceedings of German CMBS borrowers. The case involves the Orange loan securitised in Talisman 6, which is sponsored by Treveria.

    An insolvency creditor contested the voting rights of the lenders under the loan. The insolvency court then held that the voting rights of the Orange loan lenders .......

    News 17 May 2013

  • Secondary German CRE demand on the rise

    Signs of renewed investor interest in secondary German commercial real estate (CRE) markets suggest some respite from the refinancing challenges facing the sector, Fitch notes. However, significant concerns remain because of the limited time left in which to resolve problem loans.

    Property in secondary locations, particularly in office and retail markets, accounts for much of the collateral underpinning German loans .......

    News Round-up 16 May 2013

  • Apartment, office prices at record highs

    US major market apartment and central business district (CBD) office prices continued to set record highs in March, according to the Moody's/RCA Commercial Property Price Indices (CPPI). Apartment prices nationally increased by 1.5% during the month, while core commercial prices were unchanged. The national all-property composite index increased by 0.4%.

    The recovery rate for loans resolved with a loss greater .......

    News Round-up 16 May 2013

  • NY firm adds SF lawyer

    Hunton & Williams has added Brent Lewis to its structured finance and securitisation practice as counsel in New York. Lewis' practice focuses on corporate finance and securitisation. He represents issuers, underwriters, servicers, originators and others in public and private securitisations involving residential and commercial mortgage loans.

    .......

    Job Swaps 15 May 2013

  • CRE specialist joins boutique bank

    Marvin Cash has joined Asgaard Capital as head of real estate and structured products in Charlotte, North Carolina. He joins from The Rowan Group, which he established two years ago to provide services to CRE credit strategy funds.

    Cash has previously worked at Cadwalader, Wickersham and Taft working on CMBS and held a similar role at Parker Poe Adams & .......

    Job Swaps 15 May 2013
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