CMBS

  • 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

  • Euro CMBS scenario assumptions deteriorate

    Based on updated central scenario assumptions, loans backing CMBS in Europe will continue to perform poorly in 2012, according to Moody's.

    Compared to the agency's previous assumption of an improved lending market in 2013, it now expects the recovery to take longer and only start in 2014 due to the prolonged financial stress in Europe and continuing eurozone crisis making .......

    News Round-up 9 February 2012

  • REC 5 upgraded

    In a rare positive turn for the CMBS, Fitch has upgraded REC Plantation Place's class B to E notes. The agency attributes the move to the asset's improving market value since March 2011, which ultimately increases the refinancing prospects of the £421.83m Plantation Place loan at maturity in July 2013.

    During the past year, a number of investors attempted to .......

    News Round-up 9 February 2012

  • January pay-offs inch higher

    The percentage of CMBS loans paying off at their maturity date inched higher in January, according to the latest Trepp pay-off report.

    In January, 40.8% of loans reaching their balloon date paid off, up by about three points from December's 37.5% reading. The December reading had been the lowest in eight months. The January number of 40.8% was below the .......

    News Round-up 8 February 2012

  • Loss severities examined

    The elevated levels of liquidation volumes in the US conduit CMBS universe seen last year have continued into 2012 and, at the same time, loan loss severities have been rising steadily since the middle of last year. A new report from US CMBS research analysts at Barclays Capital examines the pattern and factors behind the increase.

    The Barcap analysts note that .......

    News 8 February 2012

  • Shift to workouts expected to continue

    Fitch expects the shift towards putting loans backing European CMBS into workout, rather than granting extensions, to continue. This is because special servicers' options will become more limited as the volume of CMBS loans - many backed by non-prime collateral - coming due increases in 2012.

    Depending on the outcome of the workout process, this could increase the risk of .......

    News Round-up 7 February 2012

  • Kamakura moves into CRE risk

    Kamakura Corporation is set to launch a suite of commercial real estate default probability models based in part on data furnished by Trepp's Data Feed. In addition to the Kamakura CRE Default Models, Kamakura Risk Manager Version 8.0 - to be released later this month - will have full automated access to the Trepp CMBS Engine.

    The Kamakura CRE default .......

    News Round-up 7 February 2012

  • DB UK CMBS announced

    Deutsche Bank's latest UK CMBS - the £210m DECO 2012-MHILL - has hit the market. The transaction securitises a single commercial real estate loan, which the bank made to refinance entities managed by Queensland Investment Corporation's (QIC) 50% ownership in the Merry Hill shopping centre and adjacent retail and office parks. Westfield Group entities hold the remaining 50% ownership.

    Merry .......

    News Round-up 6 February 2012

  • More large liquidations predicted

    An increase in dispositions of larger CMBS loans in the coming months would not be a surprise, according to Citi securitised products analysts. They argue that there are three drivers behind such an expectation.

    First, while special servicers may continue to aggressively liquidate the small loans in their pipeline, they may also now turn their attention to potentially liquidate larger .......

    News 6 February 2012

  • Multifamily rebounding

    Fitch reports that multifamily, along with hotels, has shown the best performance rebound in the US over the past 24 months of all commercial real estate property types. As the economy has stabilised, the two sectors have been able to mark-to-market more quickly due to shorter term rentals than other property types that have stickier rental streams as a result .......

    News Round-up 3 February 2012

  • Eddystone non-call waterfall questioned

    Sainsbury's has disclosed that it may not redeem the Eddystone Finance CMBS on its April 2013 step-up date. How principal will be allocated to the notes post non-call remains unclear, however.

    European CMBS strategists at Barclays Capital believe that while the intended cashflow allocation rules for the deal are clear, the offering circular (OC) is ambiguous. "To make a final .......

    News 3 February 2012

  • Delinquency rate stays rangebound

    Last month the Trepp delinquency rate for US CRE loans in CMBS continued to hover within a narrow band. Overall, the rate in January fell by 6bp points to 9.52%.

    For the last three months the delinquency rate has oscillated only slightly higher and lower and in the process the rate hasn't gone above 9.6% or below 9.5%, Trepp says. .......

    News Round-up 2 February 2012

  • CMBS loan liquidations spike again

    The volume of CMBS conduit loans liquidated in January spiked sharply, jumping 51% from December's reading, according to Trepp. In fact, the January reading was the third highest total since the firm began tracking this number in January 2010.

    At US$1.58bn, liquidations were about 21% above the 12 month moving average of US$1.3bn per month. Since the beginning of 2010, .......

    News Round-up 1 February 2012

  • Real estate vet joins advisory

    Robin Priest has joined Alvarez & Marsal Real Estate Advisory Services in London as a senior adviser. He brings more than 30 years of experience in real estate and structured finance to the firm. His primary focus will be working with European real estate clients in connection with challenging and complex assets, portfolios or businesses.

    Prior to joining A&M, Priest .......

    Job Swaps 1 February 2012

  • Alliance SAFD-PJ plan surprises to the upside

    The latest documents released as part of PJ Alliance's bankruptcy filing reveal a new reorganisation plan, which is expected to be reflected in a modification of the US$475m Alliance SAFD-PJ portfolio loan securitised in CSMC 2007-C2. Although concessions to the sponsors under the proposal appear high, if the hypothetical liquidation analysis truly reflects market conditions, the modification should result in .......

    News 1 February 2012

  • CMBS workouts driving maturity outcomes

    Fitch reports that European CMBS loan workouts have become more prevalent as the majority of loans that were due to mature in January 2012 remain outstanding. The total number of loans being worked out due to maturity default increased threefold during the past month, to 55 loans from 40 loans, the agency notes.

    Only three loans that were originally scheduled .......

    News Round-up 1 February 2012

  • Counterparty review hits Euro CMBS

    S&P has placed on credit watch negative its ratings on 122 tranches in 65 European CMBS transactions. The move follows the rating actions the agency took on banks on 29 November 2011, following the application of its revised bank criteria. Many of the CMBS that S&P rates have exposure to one or more of the banks affected by these rating .......

    News Round-up 1 February 2012

  • Windermere XII warning

    Fitch says that the recent decision by the Versailles court of appeal to uphold the initial 'sauvegarde' protection granted to the borrower - a non-FCT SPV - and its parent behind the loan backing the Windermere XII CMBS is currently reflected in the transaction's ratings.

    The latest ruling is the most recent in a series of court rulings that began .......

    News Round-up 31 January 2012

  • Legal team poached

    A group of five attorneys has left Burns White to join Dinsmore in a newly-opened Pennsylvania office. All five attorneys are experienced in CRE and CMBS.

    Rich O'Halloran was previously chair of Burns White's business practices group and will serve as the office managing partner at Dinsmore. He is joined by Lindsey Hoelzle, Eric Levine, Alyson Ricker and Marshall Schreibstein.

    Job Swaps 31 January 2012

  • US CMBS continues to impress

    January has proved to be a productive month for US CMBS and last week was no exception to that trend. New issuance has been well received and spreads in both the primary and secondary market are tightening.

    "The huge change in sentiment lately has been due to everybody switching to 'risk-on' mode. The way that has shown up in CMBS .......

    Market Reports 30 January 2012

  • Japanese CMBS see Q4 losses

    Losses were incurred on seven of the ten Japanese CMBS loans for which collections were completed in 4Q11, according to S&P. Further, of the nine underlying loans of Japanese CMBS transactions rated by the agency that matured in the fourth quarter, three defaulted due to non-repayment in the same quarter and six were repaid.

    Meanwhile, collections for 10 other loans .......

    News Round-up 30 January 2012
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