CMBS

  • EMEA, US CMBS divergence underlined

    Fitch has released a report highlighting that while the US CMBS market has shown continued growth over the past three years, its EMEA counterpart remains in limbo. US volumes remain barely 25% of the market's peak in 2007, but transaction numbers are nearly 50% of the 2007 level. In contrast, the EMEA market is likely to close its third year .......

    News Round-up 23 October 2012

  • Extra data for SF analysis platform

    Interactive Data will now provide independent evaluated prices on RMBS, ABS and CMBS for use within Intex's INTEXcalc service. The data can be used as inputs for a range of single security and portfolio analytics reports, offering transparency and speed in analysing securities.

    .......

    Job Swaps 23 October 2012

  • Above and beyond

    US CMBS market exceeds early expectations

    The US CMBS market has gone from strength to strength in 2012. Spreads have rallied consistently, while loan maturity outcomes have been better than anyone predicted at the start of the year.

    Increased interest in CMBS over the very short term has led to dramatic tightening in spreads. The Fed's introduction of QE3 has played a key role in this, .......

    News Analysis 23 October 2012

  • Low losses projected for EMEA, APAC SF

    With losses on global structured finance bonds largely clustered in US transactions, Fitch expects losses to be vastly lower on deals issued in the EMEA and APAC regions.

    "Losses on European deals will likely be low because of the strong performance of consumer assets, such as mortgages, credit cards and auto loans," comments Kevin Duignan, head of global structured finance .......

    News Round-up 22 October 2012

  • RBA preps loan-level requirements

    The Reserve Bank of Australia is introducing new eligibility criteria for RMBS in its operations. Issuers of RMBS will be required to provide more detailed information than is currently the case. The new information covers both transaction-related data as well as information on the underlying assets.

    Currently, the information required by the Reserve Bank for RMBS to be repo-eligible is .......

    News Round-up 22 October 2012

  • Isobel CMBS slammed

    Moody's notes that it would not have assigned a Aaa rating to Isobel Finance No.1, the first non-performing real estate loan portfolio CMBS transaction to come to market in EMEA (SCI 4 October). The agency says that the deal is not compatible with a Aaa rating because of the quality of the assets, its extra leverage due to swap termination .......

    News Round-up 18 October 2012

  • US CMBS grinds tighter

    In line with the rising prices seen this week in European CMBS (SCI 17 October), the secondary market in the US has been grinding tighter all week. That trend continued yesterday, although supply was noticeably lighter.

    GG10 Dupers closed Tuesday's session at swaps plus 156 but were being quoted yesterday at swaps plus 155/150, according to Interactive Data figures. Legacy .......

    Market Reports 18 October 2012

  • EMEA CMBS on the rise

    SCI's PriceABS BWIC data indicates that senior European CMBS spreads have increased slightly over the past month or so. Levels for the benchmark GRND1 C tranche appear to have remained stable, however.

    A couple of UK names - MALLF1 A and REC 5 A - are indicative of the rising trend. A £6.1m slice of the former was covered .......

    Market Reports 17 October 2012

  • CMBS late-pays declining

    US CMBS delinquencies declined for the fourth straight month, according to Fitch's latest index results for the sector. CMBS late-pays fell by 2bp in September to 8.37% from 8.39% in August.

    Several notable loans were also paid in full this past month. While encouraging on the surface, a closer look reveals that they were paid off only after refinancing delays, .......

    News Round-up 15 October 2012

  • Reduced controlling class powers likely

    Individual classes of CMBS investors seem likely to lose the ability to appoint or replace special servicers, which should help the European primary market to re-emerge, according to Fitch. The agency notes that although the lack of a controlling class in the recent Florentia deal is unlikely to become a precedent, the industry is backing efforts to dilute the power .......

    News Round-up 15 October 2012

  • Busy session seen in US CMBS

    It was a jam-packed session for US CMBS yesterday. Fixed rate and 2.0 bonds were circulating alongside very large chunks of recent-issue paper, with agency tranches even making an appearance, according to SCI's PriceABS BWIC data.

    Interactive Data figures put total CMBS BWIC volume for the session at US$557m, not including another US$2.9bn of new-issue IOs out for .......

    Market Reports 12 October 2012

  • State CRE price trends analysed

    Commercial real estate prices in the US political red states have recovered more robustly than those in blue states in the aftermath of the financial crisis, according to the latest Moody's/RCA CPPI report. Overall since 2000, however, prices have gained more in the blue states than they have in the red states.

    Moody's looked at the real estate price trends .......

    News Round-up 12 October 2012

  • Servicer risk mitigation matters

    Litigation activity involving borrowers in US CMBS is maintaining a steady level, despite the number of loans in special servicing fluctuating recently. The allegations being made are also broadly the same as they were in the past, according to Maria Blue Minsker, counsel at Alston & Bird. Borrowers continue to allege lender liability, as well as breach of fiduciary duty .......

    News 12 October 2012

  • Full circle

    Agency CMBS could provide template for issuance

    The recently-priced Florentia agency CMBS has several striking features. It is being seen as a positive return to the early days of the European market and could provide a blueprint for future issuance.

    "Some of the first CMBS deals in Europe - such as Canary Wharf or Trafford Centre - were agency transactions, with the bank taking a fee for .......

    News Analysis 11 October 2012

  • APAC ratings remain stable

    Fitch reports that ratings of structured finance (SF) tranches in Asia Pacific were generally stable in 3Q12, with negative rating actions confined to Japan. A total of eight tranches were upgraded in the region during the quarter.

    "The predominance of affirmations in 3Q12 again attests to strong asset performance, particularly in Australia and South Korea, across multiple asset classes," comments .......

    News Round-up 11 October 2012

  • JPMorgan CMBS slammed

    Moody's has released an unsolicited comment on JPMCC 2012-C8, JPMorgan and CIBC's CMBS that priced on 27 September. Based on a review of publicly available information, the agency believes that all classes of the transaction below the ASB tranche lack sufficient credit enhancement relative to the ratings four other rating agencies have assigned it.

    The biggest deficiency in enhancement is .......

    News Round-up 11 October 2012

  • CRE compendium launched

    CRE Finance Council and Morningstar have launched the CREFC Compendium of Statistics. The Compendium features data from Morningstar Credit Ratings' surveillance group covering all facets of the CMBS market.

    The data, which will be updated monthly, covers: securities issuance; loans outstanding, categorised by both deal and property type; CMBS delinquencies by month, property type and vintage; special serviced loans by .......

    News Round-up 10 October 2012

  • Commercial mortgage servicers evolving

    S&P has published a report on the challenges that European commercial mortgage servicers currently face and how they are responding to them. It highlights that primary and special servicers now have more work - with both functions becoming more complex and the latter dealing with increased volumes as more loans show signs of stress.

    "Amid the financial downturn, many European .......

    News Round-up 9 October 2012

  • CMBS tightening continues

    Yesterday's session saw further tightening for US CMBS spreads. Secondary activity was solid, with SCI's PriceABS BWIC data showing over 160 CMBS line items.

    Interactive Data puts CMBS BWIC volume for the session at US$365m. GG10 Dupers were being quoted at swaps plus 159bp/155bp, having tightened from 162bp at the previous close. Legacy fixed seniors were 3bp tighter, .......

    Market Reports 5 October 2012

  • Special servicer in European expansion

    Solutus Advisors has opened an office in Frankfurt for its new wholly-owned European subsidiary, Solutus Advisors GmbH. Along with new ceo James Drayton, who joined over the summer from Oppenheimer Investments, the firm has also made fresh hires to further boost its capabilities.

    Tim Schuy joins as director in the executive team, with specific focus on Germany. He was most recently .......

    Job Swaps 5 October 2012

  • NAIC methodology changes due

    NAIC has released additional details about the proposed changes to its methodology of calculating risk-based capital requirements on legacy RMBS and CMBS positions held by insurance companies. Its valuation of securities task force (VOSTF) has advised that the economic scenarios used in the 2012 year-end modelling process remain similar to last year, albeit with less stringent assumptions in some of .......

    News Round-up 4 October 2012
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