CMBS

  • Secondary CMBS softens slightly

    US CMBS spreads widened yesterday, with bid-list supply dropping to around half of Tuesday's total. SCI's PriceABS BWIC data still shows 74 CMBS line items for the session, with a mix of new and familiar names.

    Interactive Data reports that Wednesday's total CMBS BWIC volume was US$235m, with GG10 dupers quoted around 210/205 over swaps, slightly wider than .......

    Market Reports 23 August 2012

  • Spike surprise

    Good news amid difficult CMBS maturity outcomes

    Maturity spikes have been coming like clockwork for European CMBS and last month saw the latest iteration. However, amid all the loans coming due, the more significant development may well turn out to be the restructuring proposal put forward for the GRAND transaction.

    More than €4bn of CMBS across 31 loans was scheduled to mature in July. Christian Aufsatz, securitisation .......

    News Analysis 22 August 2012

  • GAGFAH upbeat on loan refis

    GAGFAH's 1H12 earnings call provided an update on its property portfolio and CMBS refinancing efforts. The firm's statements indicate that a full repayment of the Woba Dresden loan and at least a partial refinancing of the GAGFAH 1 loan ahead of their respective maturities can be expected.

    GAGFAH confirmed that it is soliciting bids for the Woba Dresden asset - .......

    News 22 August 2012

  • CMBS note sale spike expected

    Liquidations of distressed US CMBS loans through note sales are set to spike again in September, with 111 properties worth more than US$1bn out for bid via Auction.com.

    The largest loan to be auctioned is the US$76m Astor Crowne Plaza securitised in GSMS 2005-GG4, according to CMBS analysts at Barclays Capital. With the minimum bid for the property set at .......

    News Round-up 21 August 2012

  • Core focus for Euro supply

    Technical drivers continue unabated in the European secondary ABS market. With few offers and low turnover, bids appear to be on a tightening trend for now.

    SCI's PriceABS BWIC data indicates that activity remains focused on the core UK and Dutch RMBS sectors. Among the bonds circulated on bid-lists yesterday, the GRAN 2003-2 1B (US$5m face value) and .......

    Market Reports 21 August 2012

  • Suits expected

    Libor-related litigation analyses prepped

    The impact of Libor rigging on the securitisation market is difficult to quantify, with the scandal representing yet another pause for the industry as it re-emerges post-financial crisis. Certainly, a wave of litigation activity is expected to be triggered in its wake.

    Indeed, preparatory litigation analyses are already being undertaken across all securitised asset classes as a result of the .......

    News Analysis 21 August 2012

  • Large loans enter special servicing

    Moody's reports in its latest EMEA CMBS Monthly Update that 12 new loans entered special servicing in July. The weighted average Moody's expected principal loss for loans in special servicing increased to 40% during the month.

    All loans except for one were transferred to special servicing due to maturity defaults. For nine of the loans, the final recovery determinations were .......

    News Round-up 20 August 2012

  • Conflict of interest warning

    Fitch has warned that the current situation of the Palm Beach Mall loan, securitised in the JPM 2003-PM1 CMBS, lends itself to a potential conflict of interest. The underlying property was recently sold out of REO, but the special servicer (ORIX) elected not to make a final recovery determination or write down the principal balance of the loan until its .......

    News Round-up 20 August 2012

  • Mammoth MBS supply seen

    MBS volume has spiked sharply over the last couple of days. Both CMBS and RMBS supply has been very strong, with the latter boosted by a rush of Countrywide bonds.

    From 122 CMBS line items displayed on SCI's PriceABS BWIC data on Monday, Tuesday saw 207 line items and supply was still elevated yesterday, with 174 items. RMBS .......

    Market Reports 17 August 2012

  • Conflict of interest?

    Rating agency reform proposals scrutinised

    Credit rating agency reform is still being determined on either side of the Atlantic. Concerns that current regulatory proposals will create conflicts of interest and increase the cost of securitisations remain, however.

    The rating agencies' apparent mis-rating of structured finance products was largely confined to subprime RMBS and ABS CDOs, SIVs and a subset of ABCP. Given that recent research .......

    News Analysis 16 August 2012

  • US CRE prices inch up

    US commercial real estate prices, as measured by Moody's/RCA Commercial Property Price Indices (CPPI) national all-property composite index, were up by 0.5% in June. Core commercial property prices increased by 1%, while apartment prices dropped by 0.7%.

    The strong apartment price appreciation that led the recovery has stalled, says Moody's, with apartment prices down 0.8% over the last three months. .......

    News Round-up 15 August 2012

  • Interest shortfall hits CIB4 X1 note

    For what is believed to be the first time in conduit CMBS history, a tranche at the top of the cashflow waterfall has suffered an interest shortfall. The X1 interest-only class in JPMCC 2002-CIB4 was impacted after a loss of 120% on the largest loan in the deal wiped out all available cash.

    The loss was triggered after LNR liquidated .......

    News 15 August 2012

  • EMEA CMBS resilience underlined

    Fitch reports that a severe ratings stress test of EMEA CMBS underlines the considerable resilience of triple-A rated tranches in the face of a funding shock. The stress involves sharply higher inter-bank interest rates and property yields, two variables that closely chart funding conditions.

    In Fitch's analysis, rates are assumed to rise by 4% while yield would increase by over .......

    News Round-up 15 August 2012

  • Tight CMBS market trading up

    Buyers outnumber sellers in the European CMBS secondary market at present. Given recent spread tightening, investors have started working harder for yield.

    "There is very good demand for CMBS senior second-pays and quality third-pays, but there are not very many sellers around. It feels very positive, but there is limited paper so trading has been less active than it could .......

    Market Reports 14 August 2012

  • GSI loan restructured

    Berwin Leighton Paisner (BLP) has disclosed that it advised Hatfield Philips International on the restructuring of the German State Income (GSI) loan securitised in the Windermere XIV CMBS (see SCI's CMBS loan events database). The restructuring involved the sale of the Justizzentrum in Halle (Saale), Germany.

    Specifically, Ebertz & Partner (E&P) acquired 93.86% of the Wichford Group's interest .......

    News Round-up 14 August 2012

  • CRE lawyer snapped up

    Mark Foster has joined Sabal Financial Group as general counsel. He will be responsible for all legal and regulatory aspects of Sabal's business operations, focusing on issues surrounding real estate transactions and distressed loans.

    Foster has broad CMBS and CRE experience, including involvement in acquisitions, dispositions, leasing, entitlements, real estate licensing and title insurance issues. He was most recently vp .......

    Job Swaps 14 August 2012

  • CMBS late-pays fall again

    Increased loan workouts have led to a second consecutive month of decline in US CMBS delinquencies, according to Fitch's latest index results for the sector. CMBS late-pays fell by 14bp last month to 8.48% from 8.62% in June.

    Helping to drive the downward movement were two large loan modifications, involving the US$305m Schron Industrial Portfolio (securitised in GCCFC 2007-GG9) and .......

    News Round-up 13 August 2012

  • Pecanland Mall on watchlist

    Morningstar has added the US$51.6m Pecanland Mall, securitised in the CGCMT 2004-C1 CMBS, to its watchlist for a decline in occupancy.

    For the 12-month period ended 31 December 2011, the net cashflow DSCR was 1.90x, with NCF of US$7.3m. Occupancy was reported at 87%.

    The NCF DSCR and NCF for the 12-months ended 31 December 2010 were 1.84x and US$7.1m .......

    News Round-up 13 August 2012

  • Call for operating advisor standardisation

    Two key issues must be resolved if the role of CMBS operating advisor is to flourish and fulfil its intended purpose of attracting a wider range of investors to the sector, according to Morningstar. These are: how operating advisors are compensated; and how their duties are defined.

    Morningstar research has uncovered a range of operating advisor fees, varying from a .......

    News Round-up 13 August 2012

  • NPL issues

    Bad debt securitisations gaining traction

    The first post-financial crisis non-performing loan CMBS - Rialto 2012-LT1 and S2H 2012-LV1 - have proved popular with investors looking for short duration, high coupon bonds. However, the growth of the sector is expected to be limited by the paucity of distressed assets coming onto the market at present.

    William O'Connor, partner at Thompson & Knight, reckons that the current .......

    News Analysis 10 August 2012

  • GIP restructuring on the cards

    Redefine International has reached an in-principle agreement to restructure and extend the £114.6m Government Income Portfolio (GIP) loan, securitised in UK CMBS Windermere XI, ahead of its October maturity. The move is viewed as positive, albeit it is likely to result in a principal loss.

    Key terms of the proposed restructuring include the borrower repaying £33.5m of debt, in return .......

    News 10 August 2012
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