CMBS

  • 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

  • Cautious outlook for CMBS credit

    Measures of credit quality of loans backing new CMBS transactions in 4Q12 were comparable to levels found in late 2004, according to Moody's, indicating that underwriting still compares favourably to that of the sector's 2006-2007 peak.

    Conduit loan leverage held steady at approximately 100% Moody's loan-to-value ratio in 4Q12. Commercial property fundamentals are recovering and Moody's debt service coverage ratio .......

    News Round-up 1 February 2013

  • Sharp drop for CMBS delinquencies

    The Trepp CMBS delinquency rate dropped by 14bp to 9.57% in January, reaching its lowest level in 11 months. This drop follows a relatively stable fourth quarter, during which the rate hovered at around 9.7%.

    US$2.8bn US CMBS loans became newly delinquent in January, which put about 50bp of upward pressure on the delinquency rate. This was the second straight .......

    News Round-up 1 February 2013

  • REIT acquisition agreed

    Annaly Capital Management has reached a definitive agreement with CreXus Investment Corp to acquire for US$13 per share in cash, plus a payment in lieu of a pro-rated dividend, all the shares of CreXus that Annaly does not currently own. The acquisition was initially proposed in November for US$12.50 per share (SCI 12 November 2012).

    CreXus has approximately 76,630,528 shares .......

    Job Swaps 31 January 2013

  • Agency RMBS under pressure?

    ABS analysts at Bank of America Merrill Lynch suggest that a rotation out of bonds into equities will likely be the dominant story for 2013, as markets in the US transition from deflation and deleveraging to a normalisation of growth, rates and risk appetite. Moreover, the macro theme is expected to become less dominant, meaning that security selection should trump .......

    News 30 January 2013

  • LBUBS 06-C7 loans slated for auction

    Two lists of loans are scheduled to be sold via Auction.com next month, including approximately US$400m of allocated loan balance from CMBS deals, according to CMBS analysts at Barclays Capital. The largest balance is from LBUBS 2006-C7, with five properties from the 14-property US$86m Arizona Retail Portfolio listed.

    So far, six properties from the portfolio have been sold but generated .......

    News Round-up 29 January 2013

  • CMBX.6 credit curve flattening expected

    CMBX.6.BBB- spreads were approximately 30bp cheap versus similarly-rated cash bonds, following the launch of the index last Friday (SCI 7 January). The credit curve is expected to flatten as levered long positions are put on the lower-rated tranches and shorts are rolled into the higher-rated tranches

    Citi CMBS analysts confirm that dealers looking to hedge spread risk will generate ample .......

    News 29 January 2013

  • Woolgate Exchange transaction unveiled

    Further details have emerged about the sale of London's Woolgate Exchange, one of the properties securing the Cornerstone Titan 2006-1 CMBS (see SCI's CMBS loan events database). The property has been acquired by Ivanhoé Cambridge and TPG for £265M in what is described as a "complex and innovative financial structure".

    Ivanhoé Cambridge is co-investing with TPG, which originated .......

    News Round-up 28 January 2013

  • US$1bn servicer acquisition announced

    Starwood Property Trust and Starwood Capital Group have entered into a definitive agreement to acquire LNR Property for US$1.05bn in cash. The acquisition is expected to close during 2Q13 and will significantly expand Starwood Property Trust's product offerings and underwriting capabilities.

    For US$856m, Starwood Property Trust will acquire: LNR's US special servicing business, which is the biggest in the country; .......

    Job Swaps 25 January 2013

  • Freddie K underwriting eyed

    Citi CMBS analysts have highlighted two concerning trends that are emerging in the Freddie Mac K-Deal CMBS space: the appearance of very low debt yields and increasing interest-only loan exposure across deals.

    "While lower debt yields should be a warning bell for investors across the structure, more IO loans could impact various bondholders differently," they explain. "IO loans typically have .......

    News Round-up 24 January 2013

  • ARC taps CRE pros

    American Realty Capital (ARC) has recruited Donald MacKinnon and Nicholas Radesca as senior managers in its debt capital markets and corporate finance team.

    MacKinnon brings to the company over 20 years of experience, having previously served as a portfolio manager of high yield credit-sensitive commercial real estate debt products for a real estate advisory company and as an md at .......

    Job Swaps 24 January 2013

  • Legacy CMBS windfall could be repeated

    What was originally the triple-B class in BSCMS 2007-PW18 has received an interest payment that exceeded the principal balance by nearly four times. CMBS analysts at Deutsche Bank believe that such windfalls could become more common this year as loans transition through the workout process.

    The bond had an original balance of US$18.8m and carried a coupon of 6.17%. It .......

    News 24 January 2013

  • AMs, AJs dominate varied CMBS session

    US CMBS secondary volume was up yesterday. AM and AJ tranches dominated the session, although there was a mix right down the stack to E and F classes.

    SCI's PriceABS data displays 91 US CMBS line items from the session, with vintages from 2004 to 2013 cropping up. BWIC volume was estimated to stand at just under US$500m.

    Market Reports 23 January 2013

  • CMBS pay-offs analysed

    About 72% of the universe of US conduit CMBS loans that were due to pay off in 2012 and were still outstanding as of July 2011 paid off last year, according to Trepp. Of that number, 37% paid off in the six months prior to maturity, 19% paid off on the balloon date, 9% paid after the maturity date and .......

    News Round-up 23 January 2013

  • Hatfield ceo moves on

    Clarence Dixon has become the latest in a string of high-profile departures from Hatfield Philips. He is understood to be leaving his position as ceo of Hatfield International to go to CBRE.

    .......

    Job Swaps 22 January 2013

  • CRE CDO late-pays end 2012 up

    Though a decline since the previous month, US CRE CDO late-pays finished the year higher than at year-end 2011, according to Fitch's latest index results for the sector. CRE CDO delinquencies for December came in at 13.4%, down from 13.7% in November.

    However, they are higher than the 12.5% observed in December 2011. The historical high-water mark for CRE CDO .......

    News Round-up 21 January 2013

  • GRAND progress beats expectations

    Deutsche Annington has agreed partial refinancing transactions of €785m for the GRAND CMBS. Net of costs and other cash usage, this represents 71.5% of the principal amount needed to comply with the restructuring conditions for 2013, according to CMBS analysts at Barclays Capital.

    The largest portion of the new financing (€657m) will be provided by Berlin Hyp, which plans to .......

    News 18 January 2013

  • WINDM X boost for Euro CMBS

    Windermere X prices received a boost yesterday, following positive developments in connection with the Thunderbird and Tour Esplanade loans securitised in the deal. Senior European CMBS prices were also generally higher, according to SCI's PriceABS data.

    Significantly, the €109.9m Thunderbird loan has been extended to 15 October, with the credit rating defaults waived by the master servicer. In return, .......

    Market Reports 17 January 2013

  • Euro SF volume tough to call

    European structured finance volume for 2013 remains difficult to call. For example, while S&P expects overall investor-placed issuance to fall over the year, Fitch forecasts a rise of 5%.

    Fitch predicts that public and retained European structured finance issuance this year will be broadly unchanged from 2012, at about €200bn. Of this figure, 40% is expected to be placed with .......

    News Round-up 16 January 2013

  • Treasury calls time on TALF

    TALF is being wound down, following the repayment of the programme with interest. Accounting for interest and other gains above principal, repayments to date from the programme total US$173m - with additional payments expected in the future.

    TALF supported the issuance of nearly three million auto loans, more than one million student loans, nearly 900,000 loans to small businesses, 150,000 .......

    News Round-up 16 January 2013

  • CDOs set to help fill CRE gap

    New issue CRE CDOs are being hailed as the "next frontier", with the potential for volumes to increase to between US$5bn-US$10bn in 2013. Four transactions totalling US$1bn were issued in 4Q12 (see SCI's deal database).

    "Given the increased demand for CRE CDOs in the secondary market over the past couple of years, it's long been thought that the .......

    News Round-up 15 January 2013
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