CMBS

  • 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

  • Dewey CMBS specialists depart

    Dewey & LeBoeuf's former European restructuring head, Mark Fennessy, has joined Proskauer in London. He joins with Hazel Miller and a team of ex-Dewey lawyers as Proskauer grows its global capabilities.

    Fennessy and Miller both focus on corporate restructuring and special situations, including structured products. As well as financial and corporate mandates they have particular experience in CMBS restructurings.

    .......

    Job Swaps 30 May 2012

  • BauBeCon sale sets valuation benchmark

    Deutsche Wohnen is set to acquire the BauBeCon Group for a reported €1.24bn. CMBS analysts at Barclays Capital suggest that the purchase provides insight into the achievable value for large German multifamily portfolios of not necessarily prime quality, as well as evidence of debt availability for such assets.

    The BauBeCon Group owns approximately 23,500 German multifamily units, of which 82% .......

    News 29 May 2012

  • 'Risk-off' weighing on CMBX

    CMBX spreads remain at elevated levels but are still tight to October 2011's record wides. In addition to recent 'risk-off' sentiment, increased supply from the MAX CDO liquidation has weighed on the cash and synthetic AJ markets, according to CMBS analysts at Citi.

    They note that the CMBX.4.AJ and CMBX.3.AJ indices are now respectively down by 13.1% and 6.2% year-to-date, .......

    News Round-up 29 May 2012

  • Ardenwood loan on watchlist

    Morningstar has added the US$53m Ardenwood Corporate Park loan, securitised in CSMC 2007-C3, to its watchlist following a notification from the collateral's largest tenant (Logitech) of an intention to vacate its leased space. The firm accounts for roughly 48% of the gross leasable area (GLA) and 37% of effective gross income (EGI). Commentary from the master servicer indicates the available .......

    News Round-up 25 May 2012

  • FVMO 'rarely exercised'

    Fitch reports that special servicers rarely exercise the fair value market purchase option (FVMO). A survey conducted by the agency found that, since 2001, the FVMO was exercised in US CMBS transactions just 11 times. On nine of those occasions it was exercised by an affiliate or interested party.

    Fitch expects these events to remain rare as they are complex .......

    News Round-up 25 May 2012

  • CMBS loan events updated

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

    24/05/2012
    Deal: THEAT 07-1 & 07-2
    Property: 36 Hospitals
    Balance: £377m & £251m
    Event: borrower hasn't yet agreed to meet with servicer to discuss impending maturity; servicer engaged Paul Hastings as legal counsel
    Description: borrower engaged NM Rothschild as financial advisor; servicer began discussions with a number of .......

    News Round-up 25 May 2012

  • Counterparty issues

    CMBS liquidity facility disputes set to rise

    Counterparty issues in CMBS have been relatively rare in Europe. But a recent dispute over liquidity facilities could mark the beginning of a series of issues involving the obligations of SPVs in the sector.

    Certainly, European securitisation analysts at Deutsche Bank believe that 2012 is the year where the workings of liquidity facilities will come under scrutiny. "In particular, because .......

    News Analysis 25 May 2012

  • CPPI returns

    Moody's and Real Capital Analytics (RCA) have launched the Moody's/RCA Commercial Property Price Indices (CPPI), a new series that measures price changes in US commercial real estate through advanced repeat-sale regression (RSR) analytics. Composed of a suite of 20 indices, the offering is based on transaction data from and a methodology developed by MIT professor David Geltner, in conjunction with .......

    News Round-up 25 May 2012

  • Multifamily resecuritisation completed

    New York Mortgage Trust (NYMT) has completed a resecuritisation of multifamily CMBS. The REIT received net cash proceeds of approximately US$26.1m after deducting expenses associated with the transaction.

    The US$35m RB Commercial Trust 2012-RS1 class A note - rated triple-B (high) by DBRS, with a coupon of 5.35% - was privately-placed with an institutional investor. The pool comprises certain privately-placed .......

    News Round-up 24 May 2012

  • Pricing service adds CMBS

    Markit has added US CMBS to its evaluated bond pricing service. CMBS prices will be supplied by Trepp.

    With the addition of CMBS, Markit now offers access to independent prices across the whole universe of US structured finance securities. The move comes as the changing regulatory and accounting environment - along with the intense focus on transparency - have increased .......

    News Round-up 23 May 2012

  • Increased depth?

    Large bid-lists positive for Euro secondary liquidity

    Strong demand for a series of recent large bid-lists could signal increased depth in the European secondary ABS market. Liquidity is unlikely to extend to mezzanine positions, however.

    A series of large bid-lists, said to be from the legacy portfolio of a UK bank, captured the attention of the market earlier this month. The relatively large size of individual positions .......

    News Analysis 23 May 2012

  • City Point restructuring terminated

    Restructuring talks for the £429m City Point loan, securitised in Ulysses (ELOC No. 27), have been terminated. The transaction had been subject to restructuring discussions since October 2011 and was granted a number of standstills to remedy the interest payment default (see SCI's CMBS loan events database).

    However, following the expiry of the latest standstill on 18 April, the borrower .......

    News Round-up 23 May 2012

  • Westin loan mod questioned

    The recent court-approved modification of the Westin Portfolio loan, securitised in JPMCC 2007-C1 and JPMCC 2008-C2, has taken the market by surprise. The modification - which extends the loan by 15 years and slashes its coupon to zero - exposes fresh intricacies of the US bankruptcy code that CMBS investors now face, according to CMBS strategists at Citi.

    They note .......

    News 22 May 2012

  • CMBS loan events updated

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

    16/05/2012
    Deal: TITN 2007-2
    Property: MPC A Portfolio
    Balance: €428.53m
    Event: updated value of €388.59m, as of 31/12/11 (decrease of €218.19m from 31/12/10), triggering subordinate lender control valuation event; valuation event occurred due to payment default at maturity
    Description: class F now controlling class

    11/05/2012
    Deal: EURO 25
    Property: Berlin Residential Portfolio
    Balance: .......

    News Round-up 18 May 2012

  • Kerzner question resolved?

    Fitch has commented on the question of whether the extension of the Kerzner International Portfolio loan violated the terms of the COMM 2006-FL12 deal documents (see SCI CMBS loan events database).

    The recent modification of the Kerzner loan included a three-year extension until 9 September 2014. However, the COMM 2006-FL12 servicing agreement contains a clause prohibiting the servicer .......

    News Round-up 18 May 2012

  • CRE CDO late-pays inch up

    The slow upward trajectory in late-pays continued this past month for US CRE CDO delinquencies, according to Fitch's latest index results for the sector. Delinquencies rose slightly in April to 13.9% from 13.6% in March.

    New delinquent assets in April consisted of four matured balloon loan interests and two newly credit-impaired CMBS bonds. Offsetting these new delinquencies were nine assets .......

    News Round-up 18 May 2012

  • German CMBS losses crystallised

    Fitch reports that five EMEA CMBS loans in its ratings universe suffered a loss during 1Q12, two of which were secured by the German multi-family housing portfolios backed by the bankrupt Level One Group. The three other loans that suffered a loss during the quarter were the Solstice and DT Berlin loans (both securitised in Cornerstone Titan 2007-1) and Agora .......

    News Round-up 18 May 2012

  • Hitting the wall

    Mixed outcomes as Euro CMBS deals reach maturity

    Last month saw another spike in European CMBS maturities as the sector finally reached the much-discussed maturity wall. About €2.3bn matured in April with mixed results, raising concerns ahead of the next spike in a couple of months.

    Around €20bn of European CMBS loans mature this year, with a further €37bn due in 2013. European asset-backed analysts at RBS note .......

    News Analysis 18 May 2012

  • CRE vet promoted

    American Realty Capital (ARC) has promoted Andrew Winer from svp and head of debt capital markets to cio of ARC Global Daily NAV Trust (ARC Global). ARC Global will invest in the US and also in Europe, where it will partner with UK-based Moor Park Capital Partners.

    Winer has extensive CRE experience. He joined ARC at the start of the .......

    Job Swaps 18 May 2012

  • Glenborough modification questioned

    Deutsche Bank CRE debt analysts suggest that the recent modification of the Glenborough Portfolio loan, securitised in COMM 2007-FL14, may be "one of the more questionable modifications to date". They indicate that the modification affords the borrower an explicit financing advantage at the bondholders' expense.

    The major terms of the modification include: a two-year maturity extension and one-year extension option, .......

    News 17 May 2012
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