CMBS

  • CMBS gaps out on ML3 concerns

    Supply concerns last week drove the first major widening in US CMBS spreads since the beginning of the year. The move follows rising expectations of potential sales from the Maiden Lane III portfolio.

    Generic 2007 LCF and AMs gave up nearly 20bp-30bp over the week to finish Wednesday at 190bp over swaps and 450bp over respectively. The effect was felt .......

    News 10 April 2012

  • Japan capital markets team poached

    White & Case has expanded its capital markets practice in Tokyo. Norifusa Hashimoto joins the firm as a local partner along with Seiji Matsuzoe and Aya Kurahashi, who join as counsel and associate, respectively.

    All three join from Allen & Overy, where Hashimoto was partner and co-head of capital markets for Japan. Hashimoto specialises in debt private placements and repackagings, .......

    Job Swaps 5 April 2012

  • Solana delinquency drives CMBS late-pays

    US CMBS late-pays last month rose by 13bp to 8.43% from 8.3% in February, according to Fitch's latest index for the sector. Helping to drive the increase was the continued underperformance of the US$360m Solana loan, now officially classified as 60-days delinquent. Prior to March, overall delinquencies had declined every month after hitting a high water mark of 9.01% in .......

    News Round-up 5 April 2012

  • Noteholder divide

    Legacy investors seek Dutch de-risking

    Noteholder division over the competing Opera Finance (Uni-Invest) proposals is emerging (see also SCI 3 April). Some legacy holders of the CMBS paper look set to vote for the credit bid option as a way of reducing their exposure to Dutch secondary properties.

    "What concerns me is credit risk; specifically, Dutch secondary real estate risk," confirms one Opera Uni A .......

    News Analysis 5 April 2012

  • 'Bad boy' rulings net credit positive for CMBS

    Michigan governor Rick Snyder last week signed into law the Nonrecourse Mortgage Loan Act, overturning two court rulings - known as the Cherryland/Chesterfield cases - that rocked the US commercial real estate space last December. The two decisions converted many 'bad-boy' non-recourse carve-out guaranties effectively into full credit recourse guaranties any time an SPE CRE borrower becomes insolvent, even if .......

    News Round-up 5 April 2012

  • New US CMBS defaults set to slow

    The pace of new US CMBS defaults will slow again this year, as seen in 2011, according to Fitch's latest annual default study. The cumulative default number is expected to reach 14.5% by the end of 2012.

    The cumulative CMBS default rate closed out last year at 12.7% (US$71.3 billion). New defaults finished 2011 38% lower (950 loans totalling US$13.7bn) .......

    News Round-up 5 April 2012

  • Maturity spike for Euro CMBS

    April is set to be another important month for European CMBS. There are 16 transactions subject to loan maturities this month, six of which have more than one loan maturing. Over half of the loans are expected to remain outstanding at the end of the year, with German loans underperforming UK loans.

    Discounting loans already in payment default or extended .......

    News 4 April 2012

  • CMBS delinquency rate jumps

    The US CMBS delinquency rate jumped by 31bp in March to 9.68%, according to Trepp. The value of delinquent loans is now US$58.1bn.

    Newly delinquent loans - accounting for over US$5bn in total - put 91bp of upward pressure on the rate. Multifamily and office loans were the worst performing property types, with each suffering significant losses.

    The office delinquency .......

    News Round-up 4 April 2012

  • Tough call

    Opera Uni proposals weighed

    Whether Opera Finance (Uni-Invest) noteholders vote for a consensual restructuring or the credit bid option on 17 April is said to be too close to call. Such a dual-track strategy is designed to ensure that there will be an outcome, but there is a real chance noteholders will fail to agree on either proposal - in which case the transaction .......

    News Analysis 3 April 2012

  • Securitised products team reorganised

    Dale Westhoff is changing roles within Credit Suisse to focus on Locus, the bank's fixed income analytics platform for interest rate products, derivatives and structured products. He will work alongside George Oomman.

    Westhoff previously led Credit Suisse's securitised products research team. He will be succeeded by Roger Lehman, who will take the position alongside his current role as lead CMBS .......

    Job Swaps 3 April 2012

  • Liquidated loan volume remains muted

    The volume of liquidated CMBS conduit loans remained muted in March, according to Trepp, just one month after posting the lowest total since November 2010. At US$995m, liquidations were about 23% below the 12-month moving average of US$1.3bn per month. Since the beginning of 2010, special servicers have been liquidating at an average rate of about US$1.08bn per month.

    In .......

    News Round-up 2 April 2012

  • Elevated CRE liquidation activity to continue

    Auction.com has released property-level details for two more commercial note/REO auctions, scheduled for the beginning of April. This comes after nearly US$1.5bn in auctions in February and March (see SCI CMBS Loan Events database).

    Of the loans up for bid, MBS analysts at Barclays Capital have identified about US$312m that are securitised in CMBS. Among the large loans .......

    News Round-up 2 April 2012

  • Best Buy CMBS exposure analysed

    Electronics retailer Best Buy has announced that it will close 50 big box stores in the US and shift to a business model emphasising smaller stores selling mobile phones, tablets and e-readers. Morningstar has released a report detailing CMBS exposure to the retailer.

    News of the restructuring came as Best Buy reported its quarterly earnings: the retailer reported a fiscal .......

    News Round-up 2 April 2012

  • April set for large maturity volume

    Fitch reports in its latest European CMBS bulletin that with another large volume of maturities coming due in April (23 loans accounting for €2.2bn), servicers will yet again be put to the test. Almost 60% of loans maturing this month are serviced by Capita Asset Services.

    To date, 430 Fitch-rated EMEA CMBS loans have matured since the onset of the .......

    News Round-up 2 April 2012

  • NPL CMBS hits the market

    The first US non-performing CMBS in over a decade - Rialto Capital series 2012-LT1 - has hit the market. The US$132m transaction is collateralised by 271 mortgage loans securing 266 properties, 11 unsecured loans and 38 REO properties.

    The total unpaid principle balance (UPB) of the loans and properties represented in the pool is US$526.1m. The sponsor - Rialto Capital .......

    News 30 March 2012

  • Retail asset values impact Canary Wharf deal

    Songbird's latest results provide updated valuations and LTV ratios for the Canary Wharf CMBS. The LTV ratio in the securitisation improved to 72.5% from 73.7% and, after adjusting for amortisation over the year, this implies a valuation decline of -0.7%.

    It is difficult to reconcile this decline with a reported valuation increase of 1% across the seven main investment properties .......

    News Round-up 30 March 2012

  • CRE association names chair-elect

    Peter Denton has been appointed chair-elect of CRE Finance Council Europe. He will succeed current chairman Christian Janssen, Jefferies' head of CRE debt capital markets for Europe, to begin a two-year term as chairman in November 2013.

    Denton is head of UK real estate at BNP Paribas. He has more than 17 years of experience in the real estate sector .......

    Job Swaps 28 March 2012

  • Opera Uni details clarified

    Eurohypo, the special servicer on Opera Finance (Uni-Invest), has clarified certain issues that were raised by noteholders.

    First, the class A committee represents 82% of the principal amount of the class A notes outstanding. Of the class A committee, 89% (or 72% of the class A notes outstanding) have confirmed that they will vote for the credit bid option if .......

    News Round-up 28 March 2012

  • CRE lending principles issued

    CRE Finance Council Europe's lender committee has released a guide entitled 'European Commercial Real Estate Lending Principles'. The committee's aim is to develop a high quality approach to European lending through best practice recommendations to market professionals.

    The guide offers an initial layout of key principles to be considered when advancing secured investment loans. "The release of the real estate .......

    News Round-up 27 March 2012

  • Opera Uni proposal put forth

    Further details have emerged on the plan put forward by Eurohypo and Uni-Invest Holdings - the special servicer and sponsor respectively - for Opera Finance (Uni-Invest), which defaulted last month (SCI passim). Noteholders will have the option of voting for a consensual restructuring of the transaction and, if that fails, class A noteholders will then vote on a credit bid.

    All .......

    News 27 March 2012

  • Coeur Defense ruling deemed credit negative

    The recent Coeur Defense ruling from the Versailles Court of Appeal is credit negative for CMBS backed by French real estate loans, according to Moody's. The agency says it has factored the current ruling's effect into its latest review of the Windermere XII transaction. Currently, it rates the class A notes at Baa2.

    The judgement passed by the Versailles Court .......

    News Round-up 26 March 2012
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