CMBS
-
Mixed outcomes for EMEA CMBS
The total number of EMEA CMBS loans in special servicing declined in November, according to Moody's, as five loans left special servicing and three loans were newly transferred. At the end of the month, 145 loans were in special servicing across the large multi-borrower and single-borrower transactions monitored by the agency.
Two loans entered special servicing due to non-payment at .......
News Round-up 20 December 2012
-
Stress tests underline ratings resilience
Fitch says that stress tests it conducted across a range of structured finance asset classes globally shows that its ratings would be resilient in the face of further stress. The tests suggest that the extent of macroeconomic stress that would be required to result in severe multiple category downgrades to its triple-A ratings is very remote. In many instances, the .......
News Round-up 19 December 2012
-
Asian attraction
Yield available, although challenges remain
The structured finance markets in Asia face significant constraining factors in 2013. A preference for covered bonds will limit RMBS issuance on the mainland, while deal volume in Japan and Australia is expected to be flat to lower, with demand continuing to outstrip supply.
Gregory Park, managing partner at Northstone Peak, notes that the structured finance market in Asia remains .......
News Analysis 19 December 2012
-
Rally drivers
US ABS recovery subject to potential shocks
The US ABS market rallied strongly in 2012, with CLO and CMBS issuance volumes in particular surprising many. A substantial recovery is anticipated in most areas next year, although this remains subject to potential fiscal and regulatory shocks.
"Across the spectrum of securitised products, 2012 has turned out to be an impressive year for investors, with substantial double-digit returns - .......
News Analysis 18 December 2012
-
Not giving in
Solid 2013 anticipated for European securitisation
The European securitisation market has been dominated by regulatory pressures, but - as participants become more comfortable with the changes being imposed - secondary market rallies have made primary issuance increasingly attractive. Supply in 2013 is expected to be broadly steady, with issuance anticipated right from the start of the year.
Kevin Ingram, partner at Clifford Chance, believes that while .......
News Analysis 18 December 2012
-
Loan-level regulatory implications noted
Opinion is divided among market participants as to whether the ECB and Bank of England's loan-level data requirements will bring meaningful benefits for investors and whether such benefits outweigh the cost to originators of providing this information in the appropriate formats, according to Reed Smith in a recent client memo. While increased compliance costs are a disincentive to ABS issuance, .......
News Round-up 18 December 2012
-
Tower 45 watchlisted
Morningstar has added the US$170m Tower 45 loan - securitised in the MLCFC 2007-5 CMBS - to its watchlist, due to a small decrease in DSCR over the first half of 2012 combined with some upcoming lease rollover.
The property has generated higher than underwritten cashflows for each of the past four years. However, the NCF has fallen off during .......
News Round-up 18 December 2012
-
Strengthening performance forecast for US SF
Strengthening performance and issuance tailwinds in most US structured finance sectors are likely to push growth further in 2013, according to Fitch. However, one key area to watch in the coming year will be the potential drag created by fiscal cliff-related issues.
"Securitisation re-established its importance to the global capital markets in 2012 and we expect this positive trajectory to .......
News Round-up 14 December 2012
-
Increasing stability for Japanese SF
Fitch expects slightly more Japanese structured finance transactions to maintain a stable outlook in 2013 than in 2012. Issuance is expected to increase modestly but not by enough to satisfy demand.
Stable outlooks will be supported by steady asset performance and structural protection. Non-distressed CMBS tranches should show stable rating performance, benefiting from increasing credit enhancement caused by sequential payment .......
News Round-up 14 December 2012
-
Euro CMBS deterioration highlighted
The credit quality of European CMBS pools is expected to deteriorate in 2013. Moody's says that further losses on secondary properties will be unavoidable and exacerbated by the €16bn refinancing wall, which peaks next year when 135 loans will require refinancing.
At the same time, overall new issuance will remain muted. Moreover, the rating agency anticipates that most collateral pools .......
News Round-up 13 December 2012
-
Latest US CRE price trends examined
US central business district (CBD) office real estate prices continue to outperform other core commercial sectors, according to the latest Moody's/RCA CPPI report. CBD office prices increased 9.6% over the three months to November and 17.4% over 12 months.
"The CPPI national all-property composite price declined 0.5% in October as a 0.6% gain in apartment was offset by the decline .......
News Round-up 12 December 2012
-
CMBS pay-off highs maintained
In November, 62.6% of US CMBS loans reaching their balloon date paid off, according to Trepp. The percentage of loans paying off in September and October was 68.2% and 60.7% respectively. Prior to September, the pay-off level had only surpassed 60% twice since the beginning of 2009.
By loan count (as opposed to balance), 67.7% of loans paid off last .......
News Round-up 11 December 2012
-
Rating confirmation clarified
Fitch has clarified that it will not provide rating confirmations in connection with the appointment of a special servicer in EMEA CMBS. The agency says this stance formalises concerns it previously expressed regarding proposals originating from individual creditor classes, whose interests may not be aligned with those of other affected noteholders.
Replacing a special servicer is one source of influence .......
News Round-up 11 December 2012
-
CMBS loss severities inch up
The weighted average loss severity for all US CMBS loans liquidated at a loss was 40.8% in 3Q12, slightly up from 40.5% in the prior quarter, says Moody's. From 1 October 2011 to 15 September 2012, US$15.7bn of CMBS loans were liquidated - up by US$1.2bn over the same period the previous year.
The weighted average loss severity for all .......
News Round-up 10 December 2012
-
Two-year low for CMBS late-pays
CMBS late-pays fell by 12bp last month to 8.17% from 8.29% in October, according to Fitch's latest index results for the sector. This marks the rate's lowest level since November 2010, when it stood at 7.96% of the then outstanding Fitch-rated universe of US$430bn.
In November, resolutions of US$1.5bn outpaced additions to the index of US$1.3bn. In addition, US$6.6bn in .......
News Round-up 10 December 2012
-
Quincy Tower on watchlist
Morningstar has added the US$40.8m Quincy Tower loan, securitised in GSMS 2004-GG2, to its watchlist after the largest tenant gave notice that it will not be renewing its lease upon the scheduled expiration in March 2013. Barring immediate re-leasing, this tenant's exodus would reduce the property's occupancy to 43%.
The property is currently 99.5% occupied. Analytic Services, a public service .......
News Round-up 10 December 2012
-
Criteria update hits Euro CMBS
S&P has placed on credit watch negative its credit ratings on 240 tranches in 77 European CMBS, following an update to its criteria for the sector that is now in effect (SCI 8 November). The move affects tranches where the agency believes there is at least a one-in-two chance that ratings will be lowered, following the application of the updated .......
News Round-up 7 December 2012
-
Large AM blocks covered in active session
A number of US CMBS bonds were being shown in secondary yesterday, as traders remain busy ahead of year-end. SCI's PriceABS data shows a variety of names circulating, with large AM tranches proving particularly popular and even a 1998-vintage tranche out for the bid.
Trepp figures put BWIC volume at almost US$500m for the session, the highest for .......
Market Reports 6 December 2012
-
Asset managers named for Gemini
Receivers of the properties securing the Gemini (Eclipse 2006-3) CMBS have made a number of appointments in relation to the asset management of the portfolio.
Valad Investment Management Services has been appointed as asset manager for the office, industrial and leisure portfolio and certain retail properties. Vale Asset Management has been named as asset manager to the English shopping centre .......
News Round-up 6 December 2012
-
Increased clarity on LLD requirements
The latest amendments to the ECB's collateral eligibility framework include information on loan level data (LLD) requirements for posted securitisations and the European DataWarehouse (ED). Data will have to be reported to the ED at least on a quarterly basis, no later than one month after the IPD. If data is not provided within one month of the IPD, repo .......
News Round-up 6 December 2012
-
CMBS delinquencies inch up
The delinquency rate for US CMBS loans moved up by 2bp in November to 9.71%, according to Trepp. Loans that were newly delinquent during the month - totalling around US$3.7bn - put upward pressure of about 68bp on the rate.
Loan resolutions remained elevated in November, with over US$1.7bn resolved with losses. The removal of these loans from the delinquent .......
News Round-up 6 December 2012