CMBS

  • December pay-offs fall sharply

    The percentage of CMBS loans paying off at their maturity date fell sharply in December, posting the lowest reading since May 2011, according to the latest Trepp pay-off report.

    In December, 37.5% of loans reaching their balloon date paid off. This was almost 10 points below November's 47.1% reading.

    During 2010, the average monthly reading had been 34%. In 2011, .......

    News Round-up 10 January 2012

  • CMBS delinquency index drops as office sector rises

    US CMBS delinquencies finished last year with a fifth straight month of declines, according to the latest US CMBS Loan Delinquency Index results from Fitch. However, office delinquencies are continuing on an upward trajectory.

    CMBS late-pays declined in December to 8.37% from 8.41% a month earlier, Fitch says. However, office delinquencies climbed to 6.84%, exceeding their previous high of 6.64% .......

    News Round-up 6 January 2012

  • New CMBS director recruited

    Morningstar has appointed Gregory Murdock as director of CMBS investor services. He reports to Robert Dobilas, president of Morningstar's structured credit ratings business.

    Murdock will work directly with CMBS investors to educate them on Morningstar's structured credit rating methodology. He will also represent the firm's structured ratings business with industry trade groups.

    Murdock joins from Fannie Mae, where he was .......

    Job Swaps 6 January 2012

  • CMBS loan liquidations retreat

    The volume of CMBS conduit loans liquidated in December retreated sharply, dropping by 51% from November's reading, according to Trepp. However, last month's reading was unusually high - it was the highest total since Trepp began tracking this number in January 2010. The December number represents more of a reversion to the mean, the firm says.

    At US$1.04bn, liquidations were .......

    News Round-up 5 January 2012

  • CMBS evolution considered

    New issue US CMBS continues to evolve but with uncertainties that broader market volatility will only serve to exacerbate, according to Fitch.

    CMBS 2.0 - or 3.0, as some market participants are now calling it - closed out 2011 with issuance at just over US$40bn, the rating agency notes. "Among the more notable attributes is the re-emergence of public deals .......

    News Round-up 5 January 2012

  • 2007-vintage maturities hit CMBS delinquency rate

    After a positive November delinquency report, the Trepp CMBS delinquency rate reversed course and moved higher in December. The firm believes that the move marks the beginning of a six- to twelve-month stretch where the rate could increase by 75bp in aggregate, driven by the first wave of 2007-vintage loans reaching their balloon dates over the next few months.

    Overall .......

    News Round-up 4 January 2012

  • Brazilian bank buys securitisation firm

    Banco PanAmericano, a division of BTG Pactual, is to purchase Brazilian Finance and Real Estate (BFRE). A non-binding memorandum of agreement has been signed for a R$940.3m acquisition of all BFRE companies, including its mortgages and securities divisions.

    The purchase marks a repositioning for PanAmericano as it reorganises and diversifies its business. BFRE has been a market player for 12 .......

    Job Swaps 3 January 2012

  • CRE advisory hires for DCM

    American Realty Capital (ARC) has hired Andrew Winer to lead a number of the firm's strategic debt initiatives.

    Reporting directly to Nicholas Schorsch, ceo, and Bill Kahane, president, Winer will be charged with advising ARC, its affiliates and subsidiaries in connection with debt capital markets. He will be responsible for arranging corporate lines of credit and other loan facilities for .......

    Job Swaps 3 January 2012

  • Euro CMBS loan warnings issued

    According to the latest European CMBS monthly bulletins from S&P and Fitch, January is going to be a testing month for loan maturities.

    Although recent data show that some delinquent European CMBS loans have cured, the poor loan performance looks set to continue undeterred in 2012, according to S&P. This, the agency says, is all the more troubling considering that .......

    News Round-up 3 January 2012

  • Keep on keeping on

    Cautious outlook for the global CMBS and CRE markets in 2012

    At best, expectations for the US CMBS and CRE markets in 2012 are for more of the same - there appears to be little hope for a sudden upsurge in activity next year. However, there are some pockets of positivity and ultimately, it is argued, the market simply has to keep going. (For more on European CMBS, see boxed out .......

    News Analysis 22 December 2011

  • Law firm names SF head

    Reed Smith has appointed Tamara Box as head of structured finance. Previously head of international structured finance at Berwin Leighton Paisner, Box joins Reed Smith's London office as a partner in the financial industry group.

    Box is qualified in both England and New York and specialises in securitisations, derivatives, debt capital markets and debt restructurings. She also has significant experience .......

    Job Swaps 22 December 2011

  • US CMBS volumes forecast down

    Moody's expects new US CMBS issuance to hit US$40bn in 2012, down slightly from 2011. These transactions are anticipated to perform well, given that the underlying loans will be underwritten to values and rents that are well below peak levels. Property values in aggregate also should remain at current levels or slightly lower into 2014, followed by moderate growth in .......

    News Round-up 19 December 2011

  • 2012 'pivotal' for CMBS performance

    With over US$55bn of US CMBS loans scheduled to mature next year, the most for any year to date, 2012 could be pivotal for CMBS credit performance, according to S&P.

    Of the 2007 vintage maturities, US$19bn are five-year term loans, approximately 85% of which are scheduled to mature in the first half of 2012. S&P argues that the retrenchment in .......

    News Round-up 19 December 2011

  • Innkeepers portfolio modified

    The modification and assumption of the Innkeepers portfolio securitised in LBUBS 2007-C6 and LBUBS 2007-C7 has been completed (SCI passim), according to the December remittance reports. As a result of the modification, the US$825.4m loan was written down to US$675m (US$337.5m in each deal), with each of the deals taking a US$75m loss.

    The new loan balance was consistent with .......

    News 19 December 2011

  • Euro CMBS refi warning

    Limited availability of refinancing for maturing loans will be the key threat to the credit quality of outstanding CMBS transactions in 2012, according to Moody's. A significant gap exists between refinancing needs and available financing in the overall European CRE market.

    Financing is expected to only be available for low-leveraged loans secured by prime properties, as banks are in the .......

    News Round-up 14 December 2011

  • Office CMBS delinquencies a concern

    November marked the fourth straight month of declines in US CMBS delinquencies, though office properties remain an area of concern heading into 2012, according to Fitch's latest delinquency index results.

    CMBS late-pays declined by 15bp in November to 8.41% from 8.56%. New delinquencies totalling US$1.8bn were offset by US$2.2bn of resolutions, Fitch says. More than half of all new delinquencies .......

    News Round-up 9 December 2011

  • Macro issues cloud US outlook

    Macro issues will continue to cloud an otherwise improving forecast for US structured finance performance next year, according to Fitch.

    After a fast start to the year, macro concerns and regulatory developments slowed the pace of recovery. Fitch is expecting improvements to continue at a modest pace next year.

    The outlook for the four US structured finance sectors is stable .......

    News Round-up 7 December 2011

  • CMBS pay-offs bounce back

    One month after posting the biggest drop in 18 months, the percentage of US CMBS loans paying off at their maturity date rebounded in November, according to the latest Trepp pay-off report.

    In November, 47.1% of loans reaching their balloon date paid off. This was over five points above October's 41.8% reading.

    During 2010, the average monthly reading had been .......

    News Round-up 7 December 2011

  • US CMBS loan liquidations 'skyrocket'

    The balance of CMBS conduit loans liquidated in November skyrocketed, according to Trepp, posting the highest total since the firm began tracking this number in January 2010. The November total was 17% higher than the previous record set in June 2011.

    At US$2.1bn, liquidations were 60% higher than the 12-month moving average of US$1.3bn per month. Since the beginning of .......

    News Round-up 6 December 2011

  • CMBS from 2001 'still standing'

    Much has been made of the pressure that US CMBS has been under in recent years, but one vintage has withstood both a turn-of-the-decade recession and the recent global credit crisis, according to Fitch. With ten years of seasoning, the vast majority of CMBS collateral from 2001 has either been liquidated or repaid in full through 3Q11. In that period, .......

    News Round-up 6 December 2011

  • Asian SF ratings to remain stable

    Fitch says that it expects most outstanding ratings of non-Japan Asia (NJA) structured finance (SF) transactions to be stable in 2012.

    "The uncertainties surrounding the global economy are not expected to materially affect NJA SF transactions. Asset performance in South Korea is projected to deteriorate mildly, though the triple-A ratings remain sustainable. In Singapore, cashflows of the Fitch-rated CMBS transactions .......

    News Round-up 6 December 2011
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