CMBS

  • Fewer US CMBS loans coming due in 2012

    2012 will see a sizeable drop in the number and volume of CMBS loans maturing from that seen this year, according to Fitch. In transactions rated by the agency, approximately 1,200 commercial mortgage loans totalling US$17.3bn are scheduled to mature in 2012 compared to 2,000 loans totalling US$22.5bn in 2011. Maturities are likely to remain modest in 2013 and 2014 .......

    News Round-up 26 August 2011

  • Recovery analytic values published

    S&P has released the updated values for its CMBS recovery analytic. The move follows the June update to the framework and macroeconomic assumptions that the rating agency uses in its regression models for forecasting property revenue and capitalisation rates (SCI 13 June).

    S&P has published an Excel workbook, which contains three spreadsheets. One describes the various columns in the result .......

    News Round-up 26 August 2011

  • Come-back conditions

    CMBS loan assumptions make a return post-crisis

    CMBS loan assumptions are making a strong come-back in the US this year, after a hiatus in 2008-2009. However, the conditions that servicers typically place on assumptions appear to be more rigorous post-financial crisis.

    One noteworthy case from August 2010 that marked the re-emergence of CMBS loan assumptions after the financial crisis concerns Bethany Properties. The case involved the Arizona .......

    News Analysis 25 August 2011

  • DQT up after two months of declines

    The delinquency rate on loans in US CMBS conduit and fusion transactions rose by 22bp in July, remaining above 9% for the seventh consecutive month, according to Moody's Delinquency Tracker (DQT). Meanwhile, the rate of loans in special servicing, as measured by Moody's Specially Serviced Loan Tracker (SSLT), fell by 5bp to 12.3%.

    This was the third consecutive decline in .......

    News Round-up 24 August 2011

  • Pru JV hires CMBS originator

    Prudential Mortgage Capital Company has hired Curtis Brunton as a principal in the Western region, based in the firm's San Francisco office. He will originate CMBS loans on behalf of the company's recently announced joint venture with the affiliated funds of Perella Weinberg Partners' asset-based value strategy (SCI 11 July), which is focused on providing conduit loans to borrowers.

    Brunton, .......

    Job Swaps 24 August 2011

  • Multifamily CMBS lags apartment recovery

    Despite various metrics pointing to a recovery in the apartment sector, the credit performance of CMBS backed by multifamily collateral has yet to benefit, according to S&P.

    The factors that have helped bolster the apartment sector include: the weak US housing market, an increase in demand from the 20-34 year-old core rental group, modest new apartment supply and the de-bundling .......

    News Round-up 24 August 2011

  • All change in US securitisation

    At the end of July 2011, with a shade over US$160bn of qualifying deals completed, the leaders have once again all swapped around in what remains a closely fought race for top place in the SCI US league tables for bank arrangers in the structured credit and ABS markets. For the first time this year, JPMorgan holds top place in .......

    News Round-up 24 August 2011

  • Innkeepers agreement terminated

    Chatham Lodging Trust and Cerberus Capital Management have terminated their commitment and obligation to acquire interests in 64 hotels owned by Innkeepers USA Trust, in accordance with the terms and conditions of their 16 May agreement (SCI 16 May). The two firms say they jointly determined to terminate the agreement due to the occurrence of a "condition, change or development .......

    News Round-up 23 August 2011

  • EMEA special servicing activity outlined

    Moody's reports in its latest EMEA CMBS specially serviced loans update that in July three new loans were transferred into special servicing and four were transferred out. This brings the total number of loans in special servicing to 103, accounting for about €14.6bn.

    The agency expects the number of loans in special servicing to increase, driven primarily by non-payment at .......

    News Round-up 22 August 2011

  • Real estate trio poached

    McCarthy Tétrault has appointed James Papadimitriou, Valérie Mac-Seing and Sébastien Thomas as partners in its Montreal real property and planning group.

    Papadimitriou has extensive experience advising clients in real estate acquisitions, developments, commercial lending transactions, real estate joint ventures, real estate financings, mortgage portfolio purchases, project financings and commercial leasing transactions. He will act as McCarthy Tétrault's real property and .......

    Job Swaps 19 August 2011

  • CMBS defeasance criteria updated

    S&P has refined its methodology and assumptions for rating US CMBS transactions with defeasance collateral by removing the triple-A rating requirement.

    "For US CMBS transactions where defeased collateral substitutes all of the commercial real estate mortgage collateral (i.e. full credit substitution), the ratings on the transaction will be no higher than the credit quality of the defeased collateral," S&P explains. .......

    News Round-up 17 August 2011

  • US multiborrower CMBS criteria updated

    Fitch has released an updated criteria report for analysing new US multiborrower CMBS transactions, but the agency is keen to stress that the core of its criteria has not changed. As a result, there are no rating implications for existing or new transactions. However, the updated criteria provide increased sensitivity to highly leveraged loans.

    In particular, Fitch cites those loans .......

    News Round-up 15 August 2011

  • Pay-off percentage drops in July

    The percentage of US CMBS loans paying off on their balloon date fell in July, according to the latest Trepp pay-off report.

    In July 39.6% of loans reaching their balloon date paid off. This was around three points below the June reading. The July number was just above the 12-month rolling average of 38.9%.

    By loan count - as opposed .......

    News Round-up 10 August 2011

  • Orrick partner finds new home

    Cameron Cowan has joined King & Spalding as a partner in its capital transactions and real estate practice in Washington, DC. He moves from Orrick, Herrington & Sutcliffe, where he was a partner in its global finance group and oversaw the opening of its Washington, DC, and three China offices. Cowan counsels financial institutions, corporations and government agencies in complex .......

    Job Swaps 9 August 2011

  • Second-quarter CRE loan mods analysed

    Modifications of the CRE loans that back US CMBS continued at a steady pace in 2Q11. At the same time, there was a small downtick in the share of loans in special servicing, according to the latest CMBS and CRE CDO surveillance review from Moody's.

    The agency notes that along with a slight drop in the share of loans in .......

    News Round-up 9 August 2011

  • Aggressive CMBS underwriting highlighted

    The quality of the loans securitised in US CMBS conduits in the second quarter held steady in terms of leverage. But there were signs of more aggressive underwriting that could lead to weaker loan pools backing CMBS, says Moody's in its latest quarterly review of the sector.

    "Leverage levels in the four conduit transactions we rated in the second quarter .......

    News Round-up 8 August 2011

  • Regulatory policy director added

    Martin Schuh has joined the CRE Finance Council (CREFC) in the newly created position of director, legislative and regulatory policy. Schuh is based in CREFC's new Washington, DC office.

    CREFC says Schuh is being brought in to promote the trade association as the leading expert and voice of the CRE finance industry with members of Congress and Capitol Hill professionals, .......

    Job Swaps 8 August 2011

  • CMBS delinquencies hit new high

    US CMBS delinquencies reached a new record high last month due to a slew of new late-pays combined with below-average loan resolutions, according to Fitch's latest index results. Nearly US$3bn of new delinquencies in July outpaced the US$1.4bn of resolutions from the index. This led to a 37bp increase to 9.01% - surpassing the previous high water mark of 8.81% .......

    News Round-up 8 August 2011

  • 2011 conduit/fusion CMBS cleared

    S&P has published an update to its review of the application of its US conduit/fusion CMBS criteria (SCI passim) and says that the approach used for DSCRs on new transactions rated since early 2011 has produced results that are consistent with its rating definitions. Effective immediately, the agency will resume assigning ratings to new conduit/fusion transactions by applying the averaging .......

    News Round-up 8 August 2011

  • Three Japanese CMBS loans default in July

    Three loans backing Moody's-rated Japanese CMBS defaulted in July, according to the agency's latest report on the sector. Two loans defaulted at their maturity date, including one large loan totaling more than ¥60bn (US$706m), and one loan defaulted before its maturity date because of a payment default. All loans were backed by office buildings in Tokyo and Osaka.

    The report .......

    News Round-up 8 August 2011

  • Barclays job cuts to hit seven CMBS

    Job cuts at financial institutions will affect demand for office space and have a minor negative effect on CMBS credit, according to S&P credit analysts James Manzi and Howard Esaki. They note that the credit of financial tenants is much higher than the average for CMBS, so the increased risk is largely in terms of lease rollover rather than default.

    News Round-up 5 August 2011

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