CMBS

  • 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

  • Trio of note sales scheduled

    Auction.com has released details of three commercial note and REO auctions scheduled for this month, which include an estimated US$600m of US CMBS exposures.

    The first auction - taking place on 4-13 June - comprises more than US$270m across 63 CMBS properties, according to CMBS analysts at Barclays Capital. Most of the loans appear to have been serviced by CWCapital .......

    News Round-up 12 June 2012

  • One-stop shop

    Christian Bearman, coo at Valad Europe, answers SCI's questions

    Q: How and when did Valad Europe become involved in CMBS workouts?
    A:     Originally founded in the 1960s, Valad Europe has grown through the acquisition of a number of local businesses in different regions to create one of the largest fully integrated real estate investment management platforms in Europe. In recent years, the company was listed .......

    The Structured Credit Interview 11 June 2012

  • Special servicing head joins

    John D'Amico has joined TriMont Real Estate Advisors as director of special asset management. He will head the firm's special servicing division and be based in Atlanta.

    D'Amico was previously general counsel of ARCap REIT and Centerline Holdings and has also been an officer, board and executive committee member of the CRE Finance Council.

    .......

    Job Swaps 11 June 2012

  • CRE acquisition announced

    Walker & Dunlop has agreed to purchase CWCapital for US$220m. Michael Berman, CWCapital ceo, will take a senior leadership role at Walker & Dunlop.

    The purchase price includes US$80m in cash and around US$140m in Walker & Dunlop stock, subject to potential adjustment based on changes in the stock price pending closing. Walker & Dunlop say the combined company will .......

    Job Swaps 11 June 2012

  • Spanish ratings cap lowered

    Fitch has downgraded 234 tranches related to 156 Spanish structured finance (SF) transactions, following the downgrade of Spain's long-term foreign currency issuer default rating to triple-B from single-A. The affected tranches comprise 150 RMBS, 58 structured credit, 23 ABS and three CMBS classes from across 101 RMBS, 40 structured credit, 14 ABS and one CMBS deals. Additionally, the agency has .......

    News Round-up 11 June 2012

  • California loan drives CMBS late-pays

    US CMBS late-pays rose by 12bp in May to 8.65% from 8.53% in April, according to Fitch's latest index results for the sector. Driving the increase was the failed modification attempt of a US$470m loan secured by Two California Plaza (see SCI's CMBS loan events database).

    The loan, securitised in GSMS 2007-GG10, had previously been characterised as in .......

    News Round-up 11 June 2012

  • Mall credit analysis warning

    With the performance gap between stronger and weaker retail malls growing, Moody's notes that malls whose ongoing viability is not assured require careful scrutiny in their CMBS credit analysis and may merit a recovery-based approach. While the vast majority of the CMBS loans collateralised by regional malls that the agency has reviewed have been high quality, it says it has .......

    News Round-up 8 June 2012

  • BGC boosts real estate team

    Garett Stoffels has joined BGC Partners as senior md and head of equity capital markets for the real estate capital markets group. He will be based in New York and report to Michael Lehrman, global head of real estate.

    Stoffels was previously global head of Cantor Fitzgerald's private capital group. He has also worked as co-head of direct private placements .......

    Job Swaps 8 June 2012

  • CMBS stress tested

    Triple-A rated US CMBS classes generally would be able to withstand a hypothetical severe recession and further deterioration in the real estate markets, according to recent stress tests conducted by Fitch. While the agency would expect a significant level of downgrades in a severe stress scenario, its prospective analysis shows that 67% of triple-A ratings would remain investment grade.

    Fitch .......

    News Round-up 7 June 2012

  • Loan pay-offs plummet

    The percentage of US CMBS loans paying off on their balloon date plummeted to the lowest level since October 2010, according to Trepp's latest pay-off report. Only 29.4% of loans reaching their balloon date paid off in May, well under the 12-month average of 43.6%.

    By loan count as opposed to balance, 57.3% of the loans paid off. On the .......

    News Round-up 7 June 2012

  • CRE firm continues expansion

    James Cope and Patrick Dempsey have joined Walker & Dunlop as svps in the firm's new Milwaukee office. The pair will focus on financing all types of income-producing properties including office, apartments, hotels, industrial and retail in the Midwest.

    Cope and Dempsey each join from Grandbridge Real Estate Capital where they specialised in originating and structuring CRE financing for all .......

    Job Swaps 7 June 2012

  • SEC issues CMBS fine

    The US SEC has charged OppenheimerFunds and its sales and distribution arm with making misleading statements about two of its mutual funds. Oppenheimer has agreed to pay more than US$35m to settle the charges.

    The SEC found Oppenheimer used TRS contracts to add CMBS exposure for the Oppenheimer Champion Income Fund and Oppenheimer Core Bond Fund in 2008 without adequately .......

    Job Swaps 7 June 2012

  • Balloon risk concerns remain

    Fitch warns that balloon risk remains the key risk for the three largest German multifamily (MFH) CMBS transactions, despite the strong market activity over the past year.

    "There has been considerable refinancing activity in the German multifamily sector over the past year," says Tuuli Tikka, associate director in Fitch's European structured finance team. "A number of large sales transactions have .......

    News Round-up 6 June 2012

  • CMBS criteria change mooted

    S&P has issued two request for comment (RFC) articles regarding proposed changes to the criteria it uses to rate CMBS. The RFCs cover the agency's methodology for deriving credit enhancement levels and its global property evaluation criteria.

    The proposed criteria are designed to improve and simplify S&P's approach to rating CMBS, as well as harmonise its approach for evaluating commercial .......

    News Round-up 6 June 2012

  • Loss severities edge up

    US CMBS loan resolutions and loss severities continue to rebound from relatively low levels in the first quarter of the year, according to Trepp. Loss severities last month hit 43.87%, up by 1.19% from April's reading.

    At US$1.64bn, liquidations were about 23% higher than the 12-month moving average of US$1.33bn per month. Liquidations were up by 15% month-over-month in May .......

    News Round-up 6 June 2012

  • Industry vet to build investment platform

    Mark Howard-Johnson has joined BlackRock to lead the development of the firm's new investment platform. He becomes global head of real estate securities management and his first priority will be to build out the team, with half a dozen more hires expected this year.

    The new global real estate securities team will work closely with BlackRock's existing real estate research .......

    Job Swaps 6 June 2012

  • CMBS loan events updated

    28 new loan events have been added to the SCI CMBS loan events database. These include:

    29/05/2012
    Deal: TITN 2006-3
    Property: AS Watson
    Balance: €23.64m
    Event: special servicer entered into restructuring agreement to assist in sale of property (offers to be received by 31 July); standstill granted, to be terminated by 31 Dec or if conditions in the restructuring agreement are met
    Description: sales .......

    News Round-up 1 June 2012

  • First-quarter loss severity dips

    The historical weighted average loss severity for all conduit loans backing US CMBS that were liquidated at a loss was 40.5% in 1Q12, down from 41% in the prior quarter, Moody's reports. Excluding loans with de minimis losses, the historical weighted average loss severity was 52.2% in the first quarter, down from 52.6% the previous quarter.

    From 1 April 2011 .......

    News Round-up 31 May 2012

  • LTV counts in Euro CMBS refis

    Of the loans securitised in Moody's-rated European CMBS that matured in 1Q12, 79% were not repaid by their scheduled maturity date. This compares with 35% for the same period in 2009, reflecting the current weak state of the lending market.

    "The main driver underpinning whether or not maturing loans are refinanced is the LTV ratio," says Oliver Moldenhauer, a Moody's .......

    News Round-up 31 May 2012

  • Delinquency rate reaches all-time high

    The US CMBS delinquency rate set an all-time high this month, according to Trepp, jumping by 24bp to 10.04%. Whether the rate creeping into double digits for the first time carries some psychological impact on the market remains to be seen.

    The increase was driven by large losses to hotel and industrial loans. Overall, four of the five largest property .......

    News Round-up 30 May 2012
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