CMBS

  • 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

  • CMBS pay-offs peak

    The percentage of US CMBS loans paying off on their balloon date hit the highest level since December 2008, according to Trepp's latest payoff report. In September, 68.2% of loans reaching their balloon date paid off, up by almost 20 points from the August reading and over 40 points from the July number.

    The September reading was more than 25 .......

    News Round-up 4 October 2012

  • RBS debuts legacy loan deal

    Further details have emerged on Isobel Finance No.1, the £463.22m CMBS that RBS preplaced last week. The transaction represents the first use of CMBS technology in Europe post-financial crisis to partially fund the purchase of legacy commercial real estate loans from a bank balance sheet.

    The deal securitises a £553.3m senior loan that RBS made to Isobel AssetCo, as borrower, .......

    News 4 October 2012

  • Galleria Towers watchlisted

    Morningstar has added the US$232m Galleria Towers loan - securitised in JPMCC 2006-LDP9 - to its watchlist, following a drop in the net cashflow debt service coverage ratio (NCF DSCR) and occupancy, as of 31 March. According to the servicer, the decline in occupancy is due primarily to the departure of Highland Capital, which occupied roughly 8% of the gross .......

    News Round-up 3 October 2012

  • LORDS 1 concerns raised

    New information published on the London & Regional Debt Securitisation 1 (LORDS 1) CMBS suggests that noteholders are exposed to greater risk than previously identified, according to Fitch. The information includes updated collateral valuations and details of a long-dated swap, the presence of which was not previously publicly disclosed.

    Including the mark-to-market of the swap, the securitised loan-to-value ratio (LTV) .......

    News Round-up 3 October 2012

  • CMBS delinquencies continue to improve

    The US CMBS delinquency rate fell by 14bp to 9.99% in September, according to Trepp, bringing the rate below 10% for the first time since April. The improvement follows a notable 21bp drop in August, the largest one-month decline since November 2011.

    Loan resolutions remained elevated in September, with over US$1.77bn in loans resolved with losses, up sharply from US$1.5bn .......

    News Round-up 3 October 2012

  • US CMBS loss severities decline

    After reaching a two-year high the previous month, US CMBS loss severities for September fell back in line with recent norms, despite liquidation totals ticking up for the third month in a row. Average loss severity came in at 37.87% last month, down significantly from 53.29% in August, according to Tripp.

    Servicers continued to pick up the pace in September .......

    News Round-up 2 October 2012

  • EMEA CMBS maturity wave due

    Fitch's European CMBS maturity repayment index improved to 44% by end-3Q12, compared with 40.6% at end-2Q12. The positive trend observed in the last quarter is unlikely to continue, however.

    24 loans securitised in EMEA CMBS transactions are coming due this quarter, 22 in the month of October alone. "The chances of refinancing are doubtful for almost two-thirds of EMEA CMBS .......

    News Round-up 2 October 2012

  • Enforcement opportunities highlighted

    A divergence between the relatively few strong European CMBS transactions and the larger number of deals backed by weaker loans has emerged in recent weeks, driven by weakness in the commercial property market and the lack of available financing. European asset-backed analysts at RBS suggest that significant value can nevertheless be found in the senior tranches of these weaker transactions.

    News 1 October 2012

  • Loans in special servicing decline

    After reaching a high-water mark of US$92bn in June 2010, the balance of US CMBS loans in special servicing fell to US$80.5bn through June of this year, according to Fitch. Loans are also spending more time in special servicing.

    The number of months for loans in special servicing has increased to over 18, as of June 2012, the agency says. .......

    News Round-up 1 October 2012

  • Rent regulation complicating workouts

    Several large rent-regulated US multifamily CMBS loans could see long resolution processes and uncertain workout outcomes, according to CMBS strategists at Citi. Limited disclosure on specific rent regulation complicates valuing and projecting financials for such properties.

    The Citi strategists warn that the US$195m New York City Apartment Portfolio (securitised in MSC 2007-IQ14) and the US$133m Three Borough Pool (WBCMT 2007-C33) .......

    News 28 September 2012

  • Pearsanta claim struck out

    The proceedings in the High Court of England initiated by Pearsanta, the junior lender in the Alburn Real Estate Capital (REC 6) CMBS (SCI 27 June), have been struck out without further order of the Court. The move follows Pearsanta's failure to pay the joint defendants a second instalment of security for costs on 31 August.

    An initial procedural hearing .......

    News Round-up 27 September 2012

  • CMBS note sales scheduled

    US$1.15bn of CMBS loans across 130 properties are slated for sale via Auction.com for the rest of this month and into October. Such activity could lead to quicker-than-expected pay-downs in the next few months, particularly for front cashflows.

    The largest loan up for auction is the US$67.9m One & Two Securities Centre securitised in CGCMT2006-C5. The starting bid is US$20m .......

    News Round-up 26 September 2012

  • EMEA special servicing activity examined

    A single EMEA CMBS loan - the €16m Monheim loan securitised in Juno (Eclipse 2007-2) - was transferred to special servicing in August, due to non-payment at maturity. The weighted average Moody's expected principal loss for loans in special servicing now stands at 39%, according to its monthly update on the sector, with 139 loans currently in special servicing.

    Highlights .......

    News Round-up 26 September 2012

  • CRE vet recruited

    United Realty Partners has named Barry Funt as president of United Realty Capital Markets, a real estate investment banking firm specialising in the full spectrum of real estate financing. He will work directly with United Realty's founders Jacob Frydman and Eli Verschleiser.

    Funt has more than 20 years' experience in execution, structuring, underwriting, pricing, placement and oversight in the commercial .......

    Job Swaps 26 September 2012

  • No revision for GRAND proposal

    It has emerged that GRAND CMBS noteholders which were not part of the ad-hoc group involved in discussions with DAIG chose the REF note servicer as a separate conduit for providing comments on the restructuring proposal. The REF note servicer received comments from approximately 15% of noteholders expressing a desire for improvements to certain elements of the heads of terms.

    A .......

    News Round-up 25 September 2012

  • Clayton taps CRE vet

    James Meleones has joined Clayton Holdings as senior md of commercial real estate services. In this position, he will be responsible for all aspects of the firm's CRE practice, including loan-level due diligence, loan and portfolio valuation and portfolio oversight and strategy. He will report directly to Paul Bossidy, president and ceo of Clayton.

    Meleones brings more than 30 years .......

    Job Swaps 25 September 2012

  • Research trio recruited

    Janus Capital Group has enhanced the fundamental research capabilities of its fixed income investment team with three new appointments.

    Jason Brooks has been named global securitised products analyst, a new position on the fixed income team. Prior to joining Janus, Brooks served as director of CMBS research at TIAA-CREF and in mortgage research roles at both TIAA-CREF and Gramercy Capital .......

    Job Swaps 25 September 2012

  • Law firm poaches six

    K&L Gates has expanded its finance practice with the addition of four new partners in the London office. The law firm has also recruited two partners to its real estate investment, development and finance practice in the Charlotte office.

    The London hires comprise Matthew Duncan, Theresa Kradjian and Paul Matthews - who join from Sidley Austin - as well as .......

    Job Swaps 24 September 2012

  • Vitus CMBS prices

    Deutsche Bank has priced its hotly anticipated Vitus CMBS. The €754m transaction, dubbed Florentia, refinances the Vitus Immobilien German multifamily portfolio securitised in Centaurus (Eclipse 2005-3).

    Rated by DBRS and Fitch, Florentia comprises five tranches: €392m triple-A rated class A notes (which priced at 184bp over three-month Euribor), €121m double-A class Bs (295bp), €141m single-A class Cs (380bp), €50m triple-B .......

    News Round-up 24 September 2012

  • Spread divergence as supply spikes

    After a series of slower sessions, the secondary US CMBS market saw BWIC volume increase dramatically yesterday. SCI's PriceABS BWIC data shows over 150 line items for the session, with some interesting price movement evident.

    A US$24.41m slice of UBSCM 2012-C1 C, which is almost exactly half the tranche, was covered on Thursday at 288. On 14 September .......

    Market Reports 21 September 2012
×