CMBS

  • Sell-off seen in CMBX

    After fluctuating widely in early October, the CMBX index has sold off as poor corporate earnings and renewed risks from Europe impacted the broader market. CMBX.3.A and CMBX.4.A were especially affected by the pull-back, according to MBS analysts at Citi, with prices falling by 6.15% and 6.39% respectively through last week. CMBX indices have now given back most QE3-driven gains .......

    News Round-up 22 November 2012

  • Rare Canadian CMBS marketing

    Brookfield Asset Management is in the market with a rare Canadian CMBS. Dubbed Bay Wellington Tower Senior Secured Mortgage Bonds, the transaction comprises a single C$525m tranche of notes with a preliminary Moody's rating of A2.

    The deal is sponsored by Brookfield Canada Office Properties, a publically traded Canadian REIT, with the proceeds being used to refinance existing mortgage debt .......

    News Round-up 22 November 2012

  • AJ surge for US CMBS

    US CMBS secondary supply is surging ahead of the Thanksgiving holiday. SCI's PriceABS data shows 248 CMBS line items for yesterday's session, with an abundance of AJ tranches out for the bid.

    Interactive Data notes that GG10 dupers were quoted at swaps plus 174/172 yesterday, which was unchanged from the previous close. "Generic CMBS spreads are unchanged on .......

    Market Reports 21 November 2012

  • LPA breaches eyed

    The difficulty and expense of proving CMBS loan purchase agreement breaches has historically limited the number of rep and warranty settlements in the space. However, loss expectations in certain instances could mean that the economics of litigation start to make more sense in the coming years.

    Most LPAs for US conduit deals have language that requires loan sellers to repurchase .......

    News 21 November 2012

  • Scramble to determine mortgage insurance

    Even before Superstorm Sandy hit, obtaining reliable evidence of commercial mortgage insurance had been difficult. Now, S&P reports that process has become even more challenging as affected property owners, mortgage servicers and lenders scramble to determine coverage limits and deductibles for damage caused by the storm.

    During the agency's servicer evaluation reviews, servicers consistently have reported difficulties in obtaining commercial .......

    News Round-up 21 November 2012

  • CMBS improvements to continue

    S&P reports that credit trends for US commercial CMBS were in line with its projections through the third quarter. The agency says it expects CMBS credit metrics to continue improving into 2013.

    "In our opinion, some of the same factors that drove our 2012 forecast are still in place," explains S&P credit analyst Larry Kay. "Looking forward, our 2013 forecast .......

    News Round-up 20 November 2012

  • Sunset Place on watchlist

    Morningstar has added the US$75.9m Shops at Sunset Place loan, securitised in JPMC 2010-C2, to its watchlist due to a drop in occupancy. Occupancy at the property fell from 89% at year-end 2011 to 75% as of June 2012.

    At deal issuance, anchor tenants at the property included AMC 24 Theatres, LA Fitness, Gameworks, Niketown and Barnes & Noble. Only .......

    News Round-up 19 November 2012

  • Belnord blots delinquency improvements

    US CMBS late-pays fell by 8bp last month to 8.29% from 8.37% in September, according to Fitch. Delinquency rates for all major property types, except multifamily, improved in October.

    The multifamily rate would have improved if not for the US$375m Belnord loan re-entering the index. The borrower was permitted to use reserve funds to bring the loan current, after which .......

    News Round-up 19 November 2012

  • Limited storm damage predicted for CRE

    Early indications are that damage to CMBS collateral caused by Hurricane Sandy is limited, based on information that S&P has received from servicers. The damage to many properties is still in the early stages of assessment, however.

    One master servicer that received borrower responses for about one-half of its serviced loan portfolio identified in the path of Hurricane Sandy reported .......

    News Round-up 16 November 2012

  • US CMBS secondary supply up

    It was a busy session yesterday for US CMBS, with volume up by almost 50% over the previous day. SCI's PriceABS data shows over 150 CMBS line items, with 2012 paper particularly prevalent in the mix of securities out for the bid.

    The largest slice of a 2012 deal to attract a cover was US$10m of WFRBS 2012-C9 .......

    Market Reports 16 November 2012

  • Intercreditor guidelines out for comment

    CREFC Europe's ICA Committee has released a consultation document entitled 'Guidelines for intercreditor agreements in UK commercial real estate finance transactions - 2013'. The guidelines have two key aims: to promote consideration of a common set of issues in intercreditor agreements; and to engender confidence in market participants that an acceptable arrangement between the different and frequently conflicting interests of .......

    News Round-up 15 November 2012

  • PCS label up and running

    The Prime Collateralised Securities (PCS) initiative (SCI passim) has officially opened for business with a series of board appointments. The Irish Stock Exchange, True Sale Initiative and KPMG have also been confirmed as screening partners to assist in checking key documentation.

    The PCS board now comprises: Francesco Papadia, former director general for market operations at the ECB, who will lead the .......

    Job Swaps 15 November 2012

  • CMBS loan services firm targets Florida

    Hart Advisors Group has expanded its CMBS loan restructuring services by opening an office in Miami. Michael Mogull, principal and director of business development, will lead the team. He has extensive experience in the CRE industry in Florida, having formed the Mogull Group there prior to joining Hart Advisors.

    Hart Advisors says the new office is a reflection of the .......

    Job Swaps 15 November 2012

  • Euro CMBS 2.0 principles finalised

    CRE Finance Council Europe has released its 'Market Principles for Issuing European CMBS 2.0' (SCI 24 July). The principles aim to help re-establish confidence in the European real estate capital markets and stimulate the further development of European CMBS by addressing a number of legacy issues.

    While the principles draw on the specific lessons learnt from legacy European CMBS transactions, .......

    News Round-up 14 November 2012

  • Manhattan CRE prices jump

    Commercial real estate prices in Manhattan have increased by 16.3% over the last 12 months, meaning that New York City joins Boston as the major metropolitan areas with the greatest gains during that period. Nationally prices have climbed by 6.9% in the last 12 months and 28% since the January 2010 trough, but remain 21.8% below the December 2007 peak .......

    News Round-up 14 November 2012

  • NY CMBS JV formed

    Greystone has formed Greystone Bassuk Group in a joint venture with The Bassuk Organization. The new group will provide expanded real estate and financial services, including creative debt and equity financing, to CRE clients with multifamily assets across the US.

    Greystone Bassuk Group will combine the national reach and expanded platform of Greystone with The Bassuk Organization's experience and knowledge .......

    Job Swaps 13 November 2012

  • Redwood preps CRE CDO

    Redwood Commercial Mortgage Corporation (RCMC), a Redwood Trust subsidiary, is in the market with a static cashflow CRE CDO. Dubbed RCMC 2012-CREL 1, the US$291.1m deal is backed by 30 subordinate commercial real estate assets secured by 76 underlying properties.

    The portfolio comprises 24 mezzanine loans (accounting for 87.9% of the pool), four preferred equity interests (6.8%), one CMBS rake .......

    News Round-up 12 November 2012

  • REIT subsidiary acquisition mooted

    Annaly Capital Management has proposed to acquire all the shares of CreXus Investment Corp that it does not already own. CreXus has approximately 76,630,528 shares of common stock outstanding, of which Annaly holds 9,527,778 (or 12.4%).

    Annaly proposes to acquire the shares for US$12.50 each, representing a 13% premium to CreXus' last reported share price. The proposal is subject to .......

    Job Swaps 12 November 2012

  • Starwood launches European debt platform

    Starwood Capital Group has formed Starwood European Finance Company (StarFin), a European real estate finance platform. StarFin exists to take advantage of financing opportunities arising from property owners needing to refinance existing loans that are maturing and ongoing demand for new real estate debt capital which is no longer widely available from the banking system.

    Cushman & Wakefield will be .......

    Job Swaps 12 November 2012

  • CMBS loan payoffs stay elevated

    The percentage of US CMBS loans paying off at maturity remained elevated last month. Trepp says 60.7% of loans reaching their balloon date paid off, over seven points down on September's level but still higher than normal.

    The October total of 60.7% of loans by balance paying off was more than 16 points above the 12-month average of 44.3%. By .......

    News Round-up 9 November 2012

  • US CMBS slips wider

    The US CMBS secondary market moved a little wider in yesterday's session, although the trend for the past week has generally been tightening. GG10 Dupers were being quoted at swaps plus 170/168, wider than the previous close of 162 over, while legacy fixed seniors and re-REMICs were each also 2bp wider.

    Interactive Data figures put total BWIC volume for US .......

    Market Reports 8 November 2012
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