CMBS

  • R2 partners with Trepp

    R2 Financial Technologies has announced a new partnership agreement with Trepp that enables users of the NxR2 system to integrate data and analytics from Trepp into their portfolio and risk management analyses. Integration of the Trepp data and analytics will further improve the depth and detail of analyses performed on portfolios that contain CMBS, the firm says.

    .......

    News Round-up 16 November 2011

  • 2012 CMBS loan defaults set to increase

    North American CMBS loan defaults slowed in the first half of 2011 after spiking in 2009 and 2010, according to a research paper published by S&P.

    "With CRE lenders becoming more cautious in the current environment, refinancing prospects for maturing loans have lessened. As 2012 is a big year for CMBS loan maturities, annual loan defaults, in our view, could .......

    News Round-up 14 November 2011

  • Drop in CMBS loan pay-offs

    One month after posting the highest reading since December 2008, the percentage of CMBS loans paying off at their maturity plummeted in October, according to Trepp's October pay-off report.

    In October, 41.8% of loans reaching their balloon date paid off. This was over 22 points lower than September's 64.4% reading, marking the single biggest monthly drop since April 2010.

    Trepp .......

    News Round-up 10 November 2011

  • Aussie act 'could be credit negative'

    The Australian Personal Property Securities Act 2009 (PPSA), due to take effect around February 2012, could be credit negative for transactions parties, warns Moody's. The PPSA will replace 70 state and federal acts as well as eliminating more than 30 individual securities registers and apply to a host of securitised assets and structures.

    "It is going to broaden the purview .......

    News Round-up 10 November 2011

  • Agency to change CMBS rating criteria

    S&P is undertaking a review of the assumptions and methodology that it uses to rate European CMBS, according to an advance notice of proposed criteria change.

    The goal of this criteria review is to increase the transparency of S&P's rating methodology, enhance the comparability of these ratings relative to other sectors, and to further address credit stability.

    S&P says this .......

    News Round-up 9 November 2011

  • CRE loan prices ease off

    The aggregate value of CRE loans priced by DebtX that collateralise CMBS decreased from 85.9% as of 31 August to 85.0% as of 30 September. Loan values were 80.5% as of the end of September. DebtX priced 53,196 CRE loans in September, with an aggregate principal balance of US$633.6bn. The loans collateralise 643 US CMBS trusts.

    "Commercial real estate loan .......

    News Round-up 9 November 2011

  • US SF losses 'surprising'

    Losses are high in the most maligned US structured finance sectors, but surprisingly low in other segments, says Fitch. By far the most losses are being seen in RMBS and CDOs, although consumer ABS has performed well.

    Fitch says RMBS and related structured finance CDOs have the most realised and expected future credit losses, while consumer ABS products such as .......

    News Round-up 9 November 2011

  • Sequential pay triggers inadvertently undermined

    Servicer workout strategies in some EMEA CMBS transactions are inadvertently undermining sequential pay triggers designed to protect senior investors, according to Fitch.

    "This is not to say that a servicer's workout decision is inappropriate," says the rating agency. "However, the documentation under which it has to act has proved contentious. There are examples of more tailored documentation catering to wider .......

    News Round-up 9 November 2011

  • Court ruling negative for StuyTown CMBS

    Investors of CMBS bonds backed by Stuyvesant Town (ST) and Peter Cooper Village (PCV) collateral are likely to face negative consequences following a court ruling late last week. Tenants in the properties were granted permission to continue with their US$215m class-action lawsuit against MetLife and Tishman Speyer Properties by the New York Appellate Court, the original case having been dismissed .......

    News Round-up 8 November 2011

  • CMBS trading trio appointed

    KGS-Alpha Capital Markets has expanded its CMBS trading team with the addition of Jeff Lewis, Kyle Wichser and Andrew Noonan. The firm has also introduced chief strategist Kamal Abdullah.

    Lewis, who leads the CMBS team, worked for 17 years at Salomon Brothers/Citigroup and then headed the CMBS trading effort at Barclays Capital, ICP Capital and most recently Citadel Securities. Wichser and .......

    Job Swaps 8 November 2011

  • US CMBS lawyer hired

    Global law firm Thompson & Knight has hired Benjamin Herd as counsel in its real estate and banking practice group in Dallas. Herd focuses his practice on real estate and banking matters, including the representation of special servicers in relation to defaulted or troubled loan workouts, maturity default resolution, collateral foreclosure, lease negotiation, and the sale of REO property.

    In .......

    Job Swaps 8 November 2011

  • E-trading platform adds RMBS, CMBS

    MarketAxess has added non-agency RMBS and CMBS to its e-trading platform. The products expand the suite of structured products available on MarketAxess, following the addition of ABS earlier this year (SCI 11 May).

    Lou Violante, MarketAxess structured products manager, comments: "We have seen good traction in ABS trading over recent months and have introduced non-agency RMBS and CMBS in direct .......

    News Round-up 7 November 2011

  • US CMBS delinquencies drop again


    October saw US CMBS delinquencies decrease for the third consecutive month, according to Fitch. The month saw limited defaults and loan resolutions and there were also encouraging peripheral signs of a positive turnaround.

    CMBS late-pays declined 4bp from 8.6% to 8.56% as the US$1.6bn of new delinquencies were offset by US$1.7bn in resolutions. The new delinquencies consisted largely of smaller .......

    News Round-up 7 November 2011

  • Uncertainty after care-home rent drop

    Following the finalisation of restructuring plans in late September (SCI passim), the 249 UK care homes leased by Southern Cross were transferred to HC-One earlier this week. According to a notice from the issuer of the associated CMBS, Titan Europe 2007-1, HC-One also acquired Southern Cross' operations that provide back office support to the homes.

    However, in a move that .......

    News Round-up 4 November 2011

  • CMBS origination team cut

    Credit Suisse will close down its CMBS origination team and downscale other businesses that are not capital efficient. In its quarterly earnings call earlier this week, the bank confirmed the cutting of 1500 positions, 50 of which are in CMBS.

    The bank's ceo Brady Dougan said CMBS is "[one of] those businesses where we cannot meet our return hurdle and we .......

    Job Swaps 3 November 2011

  • US CMBS delinquencies near highs

    The delinquency rate for US CRE loans in CMBS moved up by 21bp to 9.77% in October, according to Trepp's latest delinquency report. The CMBS delinquency rate is now at its second highest level ever - only the 9.88% reading in July 2011 was higher.

    After experiencing a big dip in the delinquency rate in August, the rate has now .......

    News Round-up 2 November 2011

  • CMBS failure to repay warning

    Based on LTVs alone, 60% of European CMBS maturing loans could fail to repay by the end of 2012, according to S&P's latest monthly CMBS bulletin.

    The rating agency examined data on the 187 loans in European CMBS scheduled to mature between January 2010 and September 2011, to see what reported LTV ratios could herald for maturity performance. "Our study .......

    News Round-up 1 November 2011

  • Maturity index decreases in October

    Fitch's European CMBS Maturity Repayment Index deteriorated during October, decreasing to 37.2% from 41.7% in the previous month due to the very low proportion of loans maturing that was repaid.

    40 loans were originally scheduled to mature in the past month, Fitch says, of which ten either prepaid more than six months ahead of their maturity dates or were repurchased .......

    News Round-up 1 November 2011

  • New CRE head confirmed

    Jefferies has confirmed the appointment of Christian Janssen as md and head of commercial real estate debt capital markets Europe (SCI 25 October). He will be responsible for the origination and securitisation of European asset-backed debt financing, including CMBS, syndicated loans and loans secured on European commercial real estate. He reports to Steve Hulett and Craig Tipping, co-heads of Jefferies' .......

    Job Swaps 1 November 2011

  • US CMBS defaults reach 12.4%

    Cumulative US CMBS defaults finished the third quarter at 12.4%, according to Fitch. Defaults through Q3 were equal to approximately half of those for full-year 2010.

    "Though large high profile loans are still defaulting, 2011 is on track to have fewer defaults than last year," says Fitch md Mary MacNeill. "Even with limited new issuance, the decline in defaults is .......

    News Round-up 28 October 2011

  • Strong CMBS resolution success rate

    Despite tremendous volume of underperforming US CMBS brought on by the credit crisis, special servicers have maintained a strong success rate for resolving delinquent loans, according to Fitch. Special servicers have resolved over US$82bn in distressed CMBS since 2007, with an average recovery rate of 86%, the agency says.

    Additionally, over three-quarters of the volume has come in 18 months .......

    News Round-up 26 October 2011
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