CMBS

  • CMBS creeping tighter again

    The US CMBS secondary market continues to tighten as supply recovers from the low levels seen at the start of the week. SCI's PriceABS data shows 91 unique line items from 34 tranches for yesterday's session, with a variety of talk and covers.

    GG10 dupers have gradually tightened this week to reach swaps plus 137/136, having closed out .......

    Market Reports 14 February 2013

  • CRE prices on the up

    US commercial real estate prices increased by 8.1% on a composite basis during 2012, according to the latest Moody's/RCA Commercial Property Price Indices (CPPI). Central business district (CBD) office and apartment were the hottest sectors, with price increases of 19.1% and 11.2% respectively for the year. Suburban office was the only sector to see a price decline in 2012, edging .......

    News Round-up 14 February 2013

  • Wake-up call

    Change in transparency, buying behaviour needed

    The recent indictment of former Jefferies trader Jesse Litvak for misrepresenting RMBS prices has served as a wake-up call for the industry (SCI 29 January). Pressure has increased on sellers of complex securities to provide a basis for prices, while buyers are being urged to demand more information.

    Two potential outcomes are possible as a result of the Litvak indictment: .......

    News Analysis 14 February 2013

  • MSBAM 2013-C8 prepay assumptions eyed

    Several noteworthy price points were observed on the XA and five-year A2 tranches of the recently-priced MSBAM 2013-C8 CMBS. The unusual call protection provisions on two large loans securitised in the deal - the Boston Park Plaza and the Hyatt Regency Hill Country Resort - are said to have driven the move.

    MSBAM 2013-C8 printed roughly in line with the .......

    News 13 February 2013

  • Poor performance expected for Euro CMBS

    Moody's expects loans backing European CMBS to perform poorly over the next two years because of the prolonged financial stress in the region and the continued euro area crisis, which is affecting all areas of the commercial real estate markets. The rating agency bases its view on several assumptions that are broadly similar to those in its 2012 European CMBS .......

    News Round-up 13 February 2013

  • Treveria work-out agreed

    CR Investment Management has been awarded the asset management mandate for the Treveria D-Silo facility backing the Treveria II/Sunrise II loan respectively securitised in the DECO 2006 E4X and EMC VI CMBS. The firm will advise and work with Treveria on the implementation of the business plan, which will create value by selling-down the portfolio over time.

    The portfolio comprises .......

    News Round-up 13 February 2013

  • Real estate vet hired in Euro expansion

    Carlton has recruited Fernando Salazar to open and run its new office in Frankfurt, Germany. He was formerly head of real estate and commercial banking at Eurohypo, and has 30 years of experience in German and Spanish real estate.

    Salazar has been involved in over US$10bn of loan originations and restructurings, and is an acknowledged expert in European real estate .......

    Job Swaps 13 February 2013

  • Promising start for CMBX.6

    CMBX.6 index activity appears to have had a promising start, based on DTCC figures. Total CMBX volumes in the index's first week of trading surged by 30% to over US$4bn, with trading on series 6 accounting for almost half of the activity.

    CMBS analysts at Deutsche Bank note that the AAA.6 sub-index made up half of all triple-A trading, as .......

    News Round-up 11 February 2013

  • CMBS late-pays hit 2010 lows

    US CMBS late-pays declined by 8bp in January to 7.91% from 7.99% a month earlier, according to Fitch. This marks the eighth straight month of declines and the lowest level since October 2010, when the index stood at 7.78%.

    In January, resolutions of US$1.4bn outpaced additions to the index of US$1.1bn. However, Fitch-rated new issuance volume of US$600m fell short .......

    News Round-up 11 February 2013

  • CMBS pay-offs jump

    The percentage of US CMBS loans paying off on their balloon date has exceeded 60% for the fourth time in the last five months, according to the Trepp January Payoff Report. In January, 66.9% of loans reaching their balloon date paid off - an increase of more than 12 percentage points from the December reading.

    The total was also the .......

    News Round-up 8 February 2013

  • Increased focus on 'drop dead' provisions

    The expiration of temporary rate reductions is emerging as a key driver of re-defaults of large modified US CMBS loans. Focus on 'drop dead' provisions is increasing as a result.

    The recent re-defaults of the US$89.25m Denmark MHC Portfolio (securitised in JPMCC 2007-LD11) and US$85m Allanza at the Lakes (CSMC 2007-C5) assets appear to be directly related to the expiration .......

    News 7 February 2013

  • GRAND template

    Fourth outcome to CMBS loan resolutions emerging

    The restructuring of the €4.33bn German Residential Asset Note Distributor (GRAND) transaction, the largest CMBS ever issued in Europe, is noteworthy for being implemented via a solvent scheme of arrangement (SCI 24 December 2012). But it is also being hailed as the forerunner for restructurings that take the cash price of senior bonds to par in the secondary market, with .......

    News Analysis 6 February 2013

  • Latest Tesco CMBS marketing

    Tesco's latest credit-tenant-linked CMBS, Tesco Property Finance 6, has hit the market via Goldman Sachs and Barclays Bank. The transaction is secured by a portfolio of seven commercial properties located in the UK.

    The deal comprises a single £506.8m tranche of fixed-rate notes, provisionally rated Baa1 by Moody's and single-A minus by Fitch and S&P. The key strengths of the .......

    News Round-up 6 February 2013

  • Real money waits as Euro CMBS weakens

    The European CMBS secondary market has weakened slightly over the last week or so. There is still selling from hedge funds and a good deal of BWIC activity, but real money remains on the sidelines.

    "The hedge funds started selling quite early in the year and they have continued to do so. Demand was strong a few weeks ago so .......

    Market Reports 5 February 2013

  • CMBS link-up to tackle maturity wave

    A global built asset consultancy and a receivership specialist have formed a strategic alliance to help lenders and investors deal with the large volume of European CMBS loans set to mature over the next two years. There is €20bn of CMBS loans scheduled to mature in 2013, with a further €15bn scheduled for 2014.

    EC Harris and Jorden Salata have formed .......

    Job Swaps 5 February 2013

  • CRE CDO transfer mooted

    The subordinated noteholders of Sorin Real Estate CDO III are proposing to appoint Collateral Management, a wholly owned subsidiary of Torchlight Investors, as successor collateral manager on the deal. At the same time, the issuer is proposing to appoint Collateral Manager as the successor advancing agent. Both roles are currently held by RE CDO Management (see SCI's CDO manager transfer .......

    Job Swaps 4 February 2013

  • CMBS loss severity ticks up

    Overall US CMBS resolution volume dropped slightly in January, according to Trepp. In addition, loans resolved with losses greater than 2% ticked up, along with loss severity.

    January average loss severity ended up at 44.39%, 733bp higher than December's 37.06%. January liquidations came in at US$1.15bn, relative to the 12-month moving average of US$1.36bn.

    The 158 loan liquidations resulted in .......

    News Round-up 4 February 2013

  • Approach to non-traditional CMBS clarified

    Appetite for non-traditional US CMBS deals is increasing. At the same time, questions as to how Fitch would assess them and whether they would warrant a triple-A rating are increasing, the agency notes.

    Fitch deems assets like sub- or non-performing loans or loans on transitional properties as falling into the non-traditional bucket. The deal structures themselves, however, don't necessarily cause .......

    News Round-up 4 February 2013

  • Euro price gains slowing

    European BWIC volumes for the first month of 2013 stand at €2.4bn, according to Deutsche Bank figures. This level is some 122% higher than for the same period last year, with CLOs (accounting for €600m of the volume) and CMBS (€438m) featuring heavily.

    So far this paper has been readily absorbed by the market, but analysts at the bank note .......

    Market Reports 1 February 2013

  • Bruntwood offer welcomed

    The Bruntwood Group is proposing to restructure its UK CMBS, Bruntwood Alpha. The pro-activity of the sponsor has been welcomed and - if implemented - the plan is expected to boost BRUNT 2007-1 bond prices in the secondary market, especially for the class B and C notes.

    "We view the potential restructure of the BRUNT 2007-1 transaction as the continuation .......

    News 1 February 2013

  • Servicers urged to report financial statements

    Given the rising volume of CMBS loan modifications over the past two years, investors have become increasingly vocal that additional information is needed to assess the modification's impact on their investment. Detailed disclosure of the modification terms is of primary importance; however, Fitch notes that the absence of reported financial statements challenges investors' ability to assess the health of the .......

    News Round-up 1 February 2013
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