CMBS

  • ECB repo eligibility broadened

    The ECB is set to reduce the rating threshold and amend the eligibility requirements for certain ABS, thereby broadening the scope of the measures to increase collateral availability that were introduced on 8 December 2011.

    Auto loan, leasing and consumer finance ABS and CMBS that have a second-best rating of at least single-A at issuance and at all times subsequently .......

    News Round-up 26 June 2012

  • CREFC president named

    Paul Vanderslice has been elected president of CRE Finance Council (CREFC) for the 2012-2013 term. Vanderslice is md and co-head of the US CMBS group at Citi. He succeeds Jack Cohen, ceo of Cohen Financial.

    .......

    Job Swaps 26 June 2012

  • CMBS partner scooped

    Schulte Roth & Zabel has expanded its real estate practice with the addition of a CMBS lawyer from Dewey & LeBoeuf. Marshall Brozost is a partner in the New York office, where his practice deals with all aspects of commercial real estate, including purchases and sales, formation of joint ventures, real estate fund formation, mortgage and mezzanine financing, REIT structuring, .......

    Job Swaps 26 June 2012

  • Stable outlook for IG CMBS

    Fitch's loss expectations for 2006-2008 vintage US CMBS transactions vary greatly by deal, the agency notes. Nevertheless, weighted average loss expectations for these three vintages total 12.3% of the original loan balance.

    Fitch expects investment grade ratings to be stable. Of over 2,500 investment grade US CMBS ratings outstanding, it has a stable outlook on 93%.

    The agency's surveillance methodology .......

    News Round-up 25 June 2012

  • CMBS servicer reports expanded

    Fitch has published the first of its expanded servicer reports for US CMBS servicers. The reports not only highlight industry best practices and servicer-specific deficiencies, but also now include a discussion of corporate governance and conflicts of interest, investor disclosure and affiliated companies.

    The expanded servicer reports are in response to investor concerns regarding potential conflicts of interest among special .......

    News Round-up 25 June 2012

  • CMBS loan events updated

    12 new loan events have been added to the SCI CMBS loan events database today.

    These include:

    18/06/2012
    Deal: ECLIP 2007-1
    Property: Greater London Portfolio
    Event: sale completed for gross price of £8.6m for Central House asset (a 6.2% premium to recent valuation)

    June
    Deal: WBCMT 07-C32 & 07-C33
    Property: ING Hospitality Pool
    Balance: $284m & $284m
    Event: sponsor reportedly injected $68m of equity to .......

    News Round-up 22 June 2012

  • Picking sides

    Challenges and opportunities in search for relative value

    Ongoing speculation about the future of Greece has dominated the market's attention, but it is not the only concern weighing on participants' minds. Nevertheless, European ABS still offers great value for those who know where to look.

    "We are at a place where trading is gradually reduced. Secondary activity is down in Europe and the US as everybody watches Greece. .......

    News Analysis 22 June 2012

  • CMBX fundamental value highlighted

    The CMBX indices continue to closely follow the broader market as investors remain preoccupied with global and domestic macroeconomic concerns. However, Citi CMBS strategists note that the indices also continue to retain fundamental value, with almost all triple-A, AM and AJ tranches remaining cheap in their base and stress scenarios.

    The S&P 500 fell dramatically in the week ending 1 .......

    News Round-up 22 June 2012

  • EMEA special servicing activity reviewed

    The number of EMEA CMBS loans in special servicing remained unchanged at 134 during May, according to Moody's, as no new loans entered special servicing and no loans were worked out. The weighted average Moody's expected principal loss for loans in special servicing is stable at 36%.

    EMEA special servicing highlights for May include the €175m sale of the portfolio .......

    News Round-up 22 June 2012

  • Mixed blessings

    Action needed to attract European investors

    Some ABS traders in Europe are expecting to use their balance sheets more over the coming months to support clients. While the rise of BWICs is aiding execution for sellers, more needs to be done to attract a broader investor base to the market.

    Increasingly heavy use of BWICs has been a mixed blessing for European ABS traders. While the .......

    News Analysis 22 June 2012

  • Euro CMBS sees spread recovery

    After softening earlier in the month, the European CMBS market has recovered over the last week. The Global ABS conference seems to have marked a turning point, but events in the RMBS market also appear to be having an effect.

    "Activity has definitely picked up lately, especially in senior CMBS. The real money guys have been looking for paper and .......

    Market Reports 21 June 2012

  • CMBS SSFA calculations recommended

    Different interpretations of simplified supervisory formula approach (SSFA) inputs under the Fed's market risk rule could result in significant variation in capital requirements (SCI 11 June). CMBS strategists at RBS have consequently put forward recommendations on how SSFA inputs for CMBS should be calculated to optimise capital requirements while standing up to potential regulatory scrutiny.

    The SSFA requires that US .......

    News 21 June 2012

  • CMBX delinquencies rising

    Delinquencies continue to rise in the 2007 vintage CMBX.4 index, driven by a raft of loans that failed to refinance at their balloon date. At the same time, liquidation volumes remain elevated, with nearly US$1bn of loans exiting CMBX trusts this month.

    The CMBX.4 60+ delinquency rate climbed to 12.6% in June, up from the 11.3% recorded last month. The .......

    News Round-up 20 June 2012

  • London law firm makes CRE hire

    Jeremy Trinder has joined Dechert's finance and real estate group. His practice incorporates all aspects of CRE, including loan origination and securitisation as well as workout and restructuring work. He also has experience in distressed debt.

    Trinder was most recently at White & Case and has also had stints at Sidley Austin and Lovells. He will be based in the .......

    Job Swaps 19 June 2012

  • APAC ratings remain stable

    Fitch reports that Asia-Pacific (APAC) structured finance (SF) tranches remain largely stable, with 85% of the tranches maintaining their ratings in 2011, unchanged from 2010.

    Downgrades outnumbered upgrades for the fourth year in a row and by an eight-to-one margin in 2011. The low number of upgrades last year can be partially attributed to the fact that about 46% of .......

    News Round-up 18 June 2012

  • Full recovery for Lembi loan

    The US$90m Lembi portfolio, securitised in JPMCC 2007-LDP11, has been liquidated out of REO with full recovery. The pool consists of 11 multifamily and five mixed-use buildings in San Francisco. Both the associated US$25m B-note and US$17m mezzanine debt were held by Nomura.

    The property was transferred to special servicing (with CWCapital) in February 2009, after the borrower drew down .......

    News Round-up 18 June 2012

  • Larken B-note hope

    The US$172m Larken Portfolio loan, securitised in LBCMT 2007-C3, has been modified. The loan transitioned to special servicing in May 2009, after NCF DSCRs slipped below 1x and occupancy declined to 86%.

    The default was not entirely unexpected, according to CMBS analysts at Barclays Capital. While underwritten occupancy had been 100%, about 12% of the space had been occupied by .......

    News 15 June 2012

  • Maiden Lane loans repaid

    The New York Fed says that its loans to the Maiden Lane and Maiden Lane III vehicles have been fully repaid with interest. The original amounts of these loans were US$28.82bn and US$24.3bn respectively. Maiden Lane II repaid all of its obligations earlier this year (SCI 29 February).

    The successful repayment of the Fed's loans to ML and ML III .......

    News Round-up 15 June 2012

  • US CRE prices slightly down

    US CRE prices were down by 0.6% in April, according to the re-launched Moody's/RCA Commercial Property Price Indices (CPPI). Moody's says that price recovery has stalled since last autumn.

    Apartment prices were down by 1.2% in April, after rising by 37.4% from their January 2010 trough. The CPPI shows that apartments in major markets started their recovery over two years .......

    News Round-up 14 June 2012

  • Dewey building watchlisted

    Morningstar has added the US$420m 1301 Avenue of the Americas loan - securitised in LBUBS 2006-C1 - to its watchlist, following the bankruptcy filing of the property's second largest tenant, Dewey & LeBoeuf. The law firm represents roughly 23% of the gross leasable area.

    For the 12-month period ended 31 December 2011, the net cashflow DSCR was 2.65x, with net .......

    News Round-up 13 June 2012

  • Euro resecuritisation programme debuts

    Credit Suisse has launched a new US$5bn-equivalent European CMBS resecuritisation programme, believed to be the first since 2010. Dubbed Credit Suisse European Mortgage Capital (CSEMCL), the first issuance under the programme comprises €78.98m class A1 and €20.9m A2 series 2012-1 notes, rated double-A minus and single-A respectively by S&P.

    At closing, CSEMCL purchased at a discount from Credit Suisse €99.88m .......

    News Round-up 12 June 2012
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