CMBS

  • Kroll publishes multi-borrower criteria

    Kroll Bond Rating Agency (KBRA) has published its methodology for rating US CMBS multi-borrower transactions. It will typically be used for transactions with at least 30 loans that are secured by properties that are diverse relative to the geographic location, property type and sponsor.

    KBRA says it developed the criteria with several guiding principles, the most important of which was .......

    News Round-up 24 February 2012

  • Loan transfer disputed

    Hatfield Philips, the original special servicer on DECO 8 - UK Conduit 2, has disputed the transfer of special servicing of eight of the 14 loans backing the transaction to Solutus Advisors. The development is said to have significant implications for the rights of junior noteholders of the deal.

    Hatfield Philips says that it is in discussions with the issuer .......

    News Round-up 24 February 2012

  • Dutch CMBS risks highlighted

    Recent developments in Dutch CRE loans highlight the risks in the sector and the potential impact on European CMBS transactions, Fitch reports.

    Prime asset values appear to have stabilised, but secondary commercial real estate values continue to decline in the Netherlands, the agency says. A combination of falling rental levels - driven by declining occupier demand, sustained high vacancy and .......

    News Round-up 24 February 2012

  • Purchase to create CRE 'powerhouse'

    Grubb & Ellis has agreed to sell substantially all of its assets to BGC Partners. The acquisition will bring Grubb & Ellis the enhanced scale and resources it has been seeking since it began looking for a buyer almost a year ago (see SCI 23 March 2011).

    "Following a thorough and rigorous process and the evaluation of all available options, we .......

    Job Swaps 22 February 2012

  • CMBS LFM risk identified

    European asset-backed analysts at RBS have identified another European CMBS that is at risk of not paying off at legal maturity in April 2013, following the default of Opera Finance (Uni-Invest) last week. However, the likelihood of other deals defaulting at legal final beyond that date appears harder to predict.

    The convention in European CMBS has been to set legal .......

    News Round-up 21 February 2012

  • DQT dips by 2bp

    The delinquency rate on loans included in US CMBS conduit/fusion transactions slipped by 2bp in January to 9.3%, according to Moody's Delinquency Tracker (DQT). The rate of loans in special servicing, as measured by Moody's Specially Serviced Loan Tracker, increased by 1bp in January to 11.98%.

    January was the 13th consecutive month that delinquencies in the US have been above .......

    News Round-up 21 February 2012

  • Keops liquidation progresses

    An update on the progress of the liquidation of the Keops portfolio, securitised in Juno (Eclipse 2007-2), has been released. A total of 147 properties have been sold for a price of Skr4.103bn, compared to a gross valuation of Skr4.242bn.

    The latest set of sales of 128 properties has been completed, with proceeds received for all of them. A contract .......

    News Round-up 21 February 2012

  • CRE CDO concentration risk highlighted

    US CRE CDO delinquencies began the year higher primarily due to maturity defaults, according to Fitch's latest index results.

    CRE CDO late-pays rose in January to 13.2% from 12.5% in December 2011, with asset managers reporting 16 new delinquent assets during the month. While Fitch's analysis already takes into account expected losses and potential future increases in delinquencies, ratings on .......

    News Round-up 17 February 2012

  • CMBS ETF launched

    Blackrock's iShares has launched an exchange-traded fund referencing the Barclays Capital US CMBS (ERISA Only) Index. Should the product grow significantly from its initial size of US$7.4m, it could prove a useful addition to the array of trading instruments available to CMBS investors.

    Blackrock says the iShares Barclays CMBS Bond Fund is the first ETF to provide exposure to investment .......

    News 17 February 2012

  • Special servicer fee warning

    Fitch has warned that the trend for some special servicers charging fees for loan modifications potentially presents risk to bondholders, borrowers and the recovering CMBS market. The agency's concern is not so much the size of any fee that a borrower pays, but the philosophy of the fee itself - it argues that special servicers have a fiduciary duty to .......

    News Round-up 17 February 2012

  • CMBS rally stalls

    The strong rally in the US CMBS market has eased off over the last two weeks. Trading is currently concentrated around AM and AJ tranches, with activity expected to pick up again in the near future.

    "The CMBS market has changed a lot over the last week or so. There have not been any large block trades and activity has .......

    Market Reports 16 February 2012

  • Euro CMBS maturity warning

    Fitch says that investment grade European CMBS ratings are becoming increasingly vulnerable to downgrades as legal final maturity (LFM) approaches. This could see Europe follow the Japanese CMBS experience, where most loan maturities have now passed and the majority of loans defaulted. There have been multiple downgrades of Japanese CMBS as the remaining time in tail periods diminishes and servicers .......

    News Round-up 15 February 2012

  • SF vet joins Analysis

    John Richard has joined Analysis Group as an affiliate. Richard's investment expertise spans unsecured corporate credit and securitisations. He was a founder of the distressed CMBS Taurus Horizon Fund and previously served at State Street Global Advisors as a senior fixed income portfolio manager.

    .......

    Job Swaps 15 February 2012

  • Law firm boosts real estate practice

    William O'Connor has joined Thompson & Knight as a partner in the firm's New York office. He recently served as chairman of the financial services practice at Crowell & Moring.

    O'Connor's practice focuses on the special servicing of CMBS and related aspects of loan workouts. He is a founding member and chairman of the high yield debt and investment forum .......

    Job Swaps 14 February 2012

  • OPERA UNI default anticipated

    Opera Finance (Uni-Invest) will become the first European CMBS to fail to repay by its legal final, if it defaults - as is expected - tomorrow. A senior noteholder steering committee has been involved in discussions about resolution options, but an announcement on the strategy is unlikely before Friday, according to structured finance strategists at Chalkhill Partners.

    They expect that .......

    News Round-up 14 February 2012

  • First Freddie transfer

    The Retreat at Stonebridge Ranch loan securitised in the Freddie Mac SPC Series K-704 CMBS was transferred to special servicing yesterday. It is believed to be the first time this has happened to a large loan securitised in the Freddie Mac K series.

    According to an update from Fitch, the US$29.41m multifamily loan transferred to the special servicer following the .......

    News 14 February 2012

  • Japanese recoveries reviewed

    S&P has released a report detailing the results of a survey that it conducted on the recovery of defaulted loans backing rated CMBS transactions in Japan, as of the end of December 2011.

    From the second quarter of 2008 - when the first underlying loan of a Japanese CMBS transaction defaulted - to the end of December 2011, 129 loans .......

    News Round-up 14 February 2012

  • DECO structural strengths highlighted

    Deutsche Bank has priced its new CMBS, the £210m DECO 2012 MHILL (SCI 6 February). Rated by DBRS and S&P, the £145m AAA/AAA class A notes printed at 300bp over Libor, the £30m AA high/AA class Bs at 450bp over and the £35m A high/A class Cs at 550bp. The single-loan deal has a 4.45-year WAL and a legal final .......

    News Round-up 13 February 2012

  • Maturity defaults drive deterioration in Euro CMBS

    Fitch says in a new report that maturity defaults continue to drive deterioration in its European CMBS portfolio. In 4Q11, 22.8% of all loans were in maturity default, a steep increase from 17.5% in 3Q11, it notes.

    Due to a combination of standstill agreements, restructurings and loan extensions, the proportion of loans that has been declared in default is slightly .......

    News Round-up 13 February 2012

  • Office, retail delinquencies hit new highs

    Delinquencies for office and retail loans have hit their highest-ever levels while overall US CMBS delinquencies fell for the sixth straight month, according to Fitch's latest US CMBS Loan Delinquency Index.

    CMBS late-pays declined by 5bp in January to 8.32% from 8.37% a month earlier. The improvement was driven by multifamily loans, which saw a 165bp plunge in its rate .......

    News Round-up 10 February 2012

  • CRE auction activity continues

    Large 'geo-series' CRE sales posted on auction.com helped drive US CMBS conduit liquidation volumes in 2011. The signs are that in the first part of this year at least they will continue to have a major impact on the sector.

    Auction.com has already listed property-level details for three large note/REO auctions for 1Q12. Scheduled for February and March, they account .......

    News 10 February 2012
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