CMBS

  • Holistic remedy

    Jacob Lyons, md at CR Investment Management, answers SCI's questions

    Q: How and when did CR Investment Management become involved in the CMBS market?
    A:     At the core of CR Investment Management's philosophy is the marriage of credit skills with the understanding and operation of underlying assets. Our focus is on real estate and shipping: both asset classes have similar dynamics and a similar client base.

    Also at the core of .......

    The Structured Credit Interview 26 March 2013

  • Widespread super-senior shortfalls unlikely

    The interest shortfalls that affected the super-senior class of MSC 2007-HQ13 are unlikely to be widespread across US CMBS conduit deals, Fitch suggests. The few super-senior classes that could be affected are from transactions that have a high percentage of already realised losses, a large amount of appraisal reductions and increasing loan concentration. Pools with a larger proportion of senior .......

    News Round-up 22 March 2013

  • CMBS 2.0 loan enters special servicing

    The US$13.6m 2100 Grand loan, securitised in CMBS 2.0 deal JPMCC 2011-C3, has been transferred to special serving. The move follows the bankruptcy of the Los Angeles-area office building's primary tenant, special effects firm Rhythm & Hues.

    CMBS analysts at Barclays Capital suggest that the firm's stay in bankruptcy may be short, as an auction for the property is set .......

    News Round-up 22 March 2013

  • Latest Coeur Defense ruling deemed credit positive

    The 28 February decision from the Versailles Court of Appeal is a positive development in the Coeur Défense case, says Moody's. The decision confirms the enforceability of security assignments of lease receivables even upon insolvency of the lessor.

    A decision from the same court last year was deemed credit negative (SCI 26 March 2012), but the latest ruling limits the .......

    News Round-up 19 March 2013

  • Canadian ABCP performance still strong

    Performance across Canadian ABCP remains strong, according to Moody's first quarterly report for the sector, which covers 4Q12. The rating agency has also launched a new web page dedicated to Canadian structured finance.

    Of the new transactions added to the Canadian ABCP programmes in the fourth quarter of 2012, 40% were used to finance residential mortgages, 34% financed auto loans .......

    News Round-up 19 March 2013

  • US CMBS attracts attention

    Secondary supply was light across the US markets yesterday, although a good amount of CMBS did get snapped up. Total bid-list supply was around US$172m, with a further US$31m in IOs also out for the bid.

    "Generic CMBS spreads are mostly wider on the day. BWIC volume is light to start the week. In terms of supply, 2006 vintage floaters .......

    Market Reports 19 March 2013

  • Shortfalls hit HQ13 super seniors

    MSC 2007-HQ13 has become the first US conduit CMBS to see interest shortfalls hit the super senior classes. Prior to the March remittance report, shortfalls had reached the AJ class, but now classes A2, A3, A1A, AM and X have been affected.

    Thus far, nine classes of bonds have been extinguished by collateral losses, according to Trepp. This has made .......

    News Round-up 18 March 2013

  • 2013-ALTM ratings slated

    Moody's says its credit evaluation of Morgan Stanley Capital I Trust 2013-ALTM CMBS is significantly different from that provided in reports published by other rating agencies. The credit protection for the principal and interest classes of the transaction - which is backed by the Altamonte Mall in Altamonte Springs, Florida - is insufficient, in the agency's opinion, relative to the .......

    News Round-up 18 March 2013

  • Varied SF impairments seen in 2012

    Global structured finance (SF) rating and impairment activity varied widely by sector and rating category in 2012, according to Fitch. Downgrades overall remained in line with those seen in 2011; however, the number of active ratings declined year-over-year by close to 20% and this contributed to a higher overall SF downgrade rate of 37% versus 31% in 2011. Upgrades remained .......

    News Round-up 18 March 2013

  • REIT acquisition offer made

    Annaly Capital Management has made an offer to purchase all the shares of CreXus Investment Corp that it does not already own. The acquisition was agreed back in January (SCI 31 January 2013).

    The offer has been made through a newly-formed subsidiary - CXS Acquisition Corporation - and amounts to US$13 per share plus a sum approximating a prorated portion .......

    Job Swaps 18 March 2013

  • Euro CMBS market picks up

    The European secondary CMBS market still has not returned to the level of activity seen at the start of the year, but it has picked up over the last couple of weeks. Some sizable bid-lists have been circulating, with mezzanine paper continuing to attract hedge fund investors.

    "Activity is still a little muted, but it has been better lately," reports .......

    Market Reports 15 March 2013

  • Fair value to drive CMBS tiering?

    US CMBS price tiering could start to emerge this year, as investors begin differentiating between special servicers on a deal. CMBS analysts at Bank of America Merrill Lynch anticipate that special servicers' approach to fair value purchase options will increasingly influence investors' buying decisions.

    "To the extent bondholders do not want to purchase bonds from deals that are specially serviced .......

    News Round-up 14 March 2013

  • Stable performance forecast for esoterics

    Moody's expects the performance of asset classes backing US commercial and esoteric ABS to be stable in 2013.

    "With event risk in general declining, most of the kinds of risk we have to watch out for now are idiosyncratic; that is, risks specific to an issuer or asset class," says Michael McDermitt, a Moody's senior credit officer. "This would include, .......

    News Round-up 14 March 2013

  • Mall benchmarking survey prepped

    Trepp and the International Council of Shopping Centers (ICSC) are set to produce an analysis of shopping centres in the US. The collaboration, which will focus on the collection and analysis of benchmark and performance data, leverages Trepp's detailed information of nearly 20,000 shopping centers and ICSC's research organisation.

    The analysis, which will be offered to the ICSC membership, is .......

    News Round-up 14 March 2013

  • Schron portfolio sales ongoing

    It has emerged that seven properties from the US$317m Schron Industrial Portfolio, securitised in GCCFC 2005-GG5, were sold via auction.com last November (SCI 30 October 2012). The note sales resulted in around US$30m of principal pay-downs and US$10m of advance/ASER reimbursement in the February and March remittances.

    The appraised value of the remainder of the portfolio fell by US$41m to .......

    News Round-up 13 March 2013

  • Apartments lead CRE price performance

    US commercial property prices across the board were effectively flat in January, according the Moody's/RCA Commercial Property Price Indices (CPPI) national all-property composite index. Over the last three years, however, Moody's found that apartment performance is leading that of hotels and homes.

    "Of the major types of properties where people sleep, apartments have been the clear price performance leader over .......

    News Round-up 13 March 2013

  • ED adds central bank economist

    The European DataWarehouse (ED) has appointed José Manuel González-Páramo as chairman. He will oversee the direction of the ED as it seeks to provide full disclosure and transparency for investors in ABS.

    González-Páramo was a member of the ECB's executive board until 2012, with responsibility for market operations and monetary policy implementation. Before that he was a member of the .......

    Job Swaps 13 March 2013

  • CRE CDO transfers due

    Gramercy Capitol Corp affiliate GKK Manager is set to transfer its collateral management rights and obligations for Gramercy Real Estate CDO 2005-1, Gramercy Real Estate CDO 2006-1 and Gramercy Real Estate CDO 2007-1 to CWCapital Investments. Consent to the assignment of the collateral management agreements from the majority of the respective controlling classes has been obtained, as required by the transaction documents.

    Job Swaps 12 March 2013

  • Office bucks watchlist trend

    Knowing which criteria triggered a servicer watchlist (WL) placement can be helpful in predicting the likelihood of a CMBS loan default, according to Barclays Capital CMBS analysts. By constructing a historical time series of WL codes, they find that 90% of watchlist determinations are driven by one of two factors - financial conditions and lease rollovers.

    A currently performing loan .......

    News 12 March 2013

  • Italian ratings cap lowered

    Fitch has downgraded 103 tranches - 69 RMBS, 15 ABS, 12 CMBS and seven structured credit assets - related to 69 Italian structured finance transactions (50 RMBS, 11 ABS, five CMBS and three structured credit deals) and four CLNs that reference Italian government bonds. The agency has also revised the outlook on 13 tranches of nine Italian RMBS transactions to .......

    News Round-up 12 March 2013

  • Strong year expected for US lodging

    The US lodging sector is expected to experience another strong year in 2013, although the rate of growth will be slightly lower than last year, according to Moody's. US nominal RevPAR should reach a new high this year and surpass the 2007 peak, albeit it will remain below the peak when adjusted for CPI.

    "We are anticipating RevPAR growth higher .......

    News Round-up 12 March 2013
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