CMBS

  • Portfolio fire-sale averted

    A €940m portfolio of around 100 German commercial offices and retail premises has been saved from a potential fire sale. The Mozart loan, secured on properties with a valuation deficit of around €200m, has been restructured in-house at servicer Hatfield Philips.

    "Despite the borrowers being in Germany, the loan was restructured without having to write off any debt, thus ensuring .......

    News Round-up 12 July 2011

  • CMBS loan origination JV formed

    Prudential Mortgage Capital Company and affiliated funds of Perella Weinberg Partners' asset based value strategy have formed a joint venture to originate commercial mortgages for future securitisation. The JV is initially targeting more than US$1bn a year in fixed rate mortgages for stabilised commercial properties across all asset classes. The venture will create a branded vehicle and partner with third .......

    Job Swaps 11 July 2011

  • CMBS loss severity jumps in June

    Over US$1.8bn in US CMBS conduit loans were resolved with losses in June, according to Trepp, indicating that special servicers continue to accelerate the pace at which they are dealing with troubled loans.

    The June reading was the highest value posted since the firm began tracking this number in January 2010. The US$1.8bn total was 19% above the previous high .......

    News Round-up 8 July 2011

  • CMBS loan maturity outcomes analysed

    Fitch has published an analysis of matured German loans securitised in Fitch-rated CMBS transactions to assess the likely outcomes at the remaining loans' respective maturity dates.

    "An analysis of matured European CMBS loans identified loan size and leverage and coverage ratios as the three most important drivers of loan maturity outcomes," says Gioia Dominedo, senior director in Fitch's structured finance .......

    News Round-up 8 July 2011

  • US CMBS delinquencies fall for second month

    For the first time since the credit crisis began in 2008, the US CMBS delinquency rate has fallen for two consecutive months according to Trepp's latest delinquency report. The rate reduction was driven primarily by a sharp spike in loans being resolved with losses, rather than delinquent loans actually curing.

    Overall, the delinquency rate for U.S. commercial real estate loans .......

    News Round-up 6 July 2011

  • CMBS maturity repayment index rises

    Fitch says in its latest European CMBS bulletin that full and partial prepayments caused its European CMBS Maturity Repayment Index to increase during June to 40.4% from 38.3%. These repayments also reduced the outstanding matured loan balance by 3.4% to €6.99bn.

    Overall, 65 of the 154 loans that have matured since 2007 have been fully repaid. No loans matured in .......

    News Round-up 1 July 2011

  • European CMBS loan defaults to rise

    Six more CMBS loans breached payment or other obligations in May, according to S&P's June European CMBS monthly bulletin. Servicers also reported that that they transferred eight more loans to special servicing in the same period and another five loans in June.

    "Twenty-five loans are scheduled to mature in July and, based on recent performance, we anticipate that the tally .......

    News Round-up 1 July 2011

  • German MFH balloon risk remains

    Fitch says in a new report that balloon risk remains a key concern for the largest German multifamily housing (MFH) CMBS transactions, despite the refinancing activity that has occurred over the past year. This view is reflected in the agency's continuing negative outlooks for the three largest CMBS transactions entirely secured by MFH collateral: GRAND, German Residential Funding and Immeo .......

    News Round-up 28 June 2011

  • Fitch to update multiborrower criteria

    Fitch ratings says that it will be releasing an update to its criteria report for analysing multiborrower US commercial mortgage transactions next month. The report will consolidate three existing criteria reports and aims to provide more transparency on Fitch's rating process for conduit and fusion transactions.

    Specifically, the report will provide more clarity on the following: Fitch Ratings' analysis of .......

    News Round-up 24 June 2011

  • Barclays Capital expands in CMBS

    Barclays Capital has hired Larry Kravetz and Spencer Kagan to expand the firm's activities in CMBS origination.

    Kravetz has joined the firm as an md and head of CMBS finance, reporting to Tom Hamilton, head of securitised products trading. Kagan has joined as an md and head of CMBS credit and underwriting, reporting to Kravetz. Both are based in New .......

    Job Swaps 24 June 2011

  • Delinquencies forecasted

    S&P has tested the theory that servicer watchlist data for CMBS can be an indicator of future delinquencies and found it to be reasonably accurate.

    The rating agency explains: "A servicer can place a loan on its watchlist for a number of reasons, but most watchlist placements are indicative of an emerging credit problem. To test the hypothesis, we used .......

    News Round-up 21 June 2011

  • German loans prominent in special servicing

    101 loans remained in special servicing across EMEA CMBS large multi-borrower and single borrower transactions monitored by Moody's, as of end of May 2011. While eight new loans entered special servicing during the month, no loans were removed following a full work-out.

    All of the newly transferred loans are pan-European, with six of them backed by collateral in Germany. Germany .......

    News Round-up 21 June 2011

  • DQT slips in May

    The delinquency rate on loans included in US conduit/fusion CMBS slipped by 4bp points in May to 9.18%, according to Moody's latest Delinquency Tracker (DQT). The total dollar balance of delinquent loans for the US remained steady at approximately US$56bn.

    "We expect a high single-digit or low double-digit delinquency rate to persist over the near term," says Tad Philipp, director, .......

    News Round-up 21 June 2011

  • Further MEPC prepayment slated

    The borrower for the Opera Finance (MEPC) loan - securitised in the Opera (MEPC) CMBS - has announced that it is to pre-pay a further £125m of the outstanding balance. Two pre-payments were made earlier in the year (SCI passim) as part of a wider financing strategy to address the early repayment of the securitised loan before its maturity in .......

    News Round-up 15 June 2011

  • New CREFC president takes reins

    Jack Cohen began his one-year presidency of CRE Finance Council yesterday (14 June). The Cohen Financial ceo succeeds Jefferies md Lisa Pendergast in the role.

    "On behalf of CRE Finance Council and its membership, I want to thank Lisa for her guidance and dedication to us and the industry," says CREFC ceo Steve Renna. He adds: "Lisa's lengthy relationship and .......

    Job Swaps 15 June 2011

  • APAC ABS ratings less volatile

    Fitch Ratings says in a new special report that Asia-Pacific structured finance (SF) ratings were considerably less volatile in 2010 than in the previous year. The total number of rating changes in 2010 was 76, down from 173 in 2009.

    "The performance of SF in Asia-Pacific was less volatile in 2010 than in 2009, with stable economies in most regions .......

    News Round-up 14 June 2011

  • Kroll details CMBS ratings process

    Kroll Bond Rating Agency (KBRA) has released three CMBS criteria publications, which provide detailed insight into the process that the agency uses to rate single borrower CMBS transactions and evaluate CMBS servicers.

    The first publication, 'KBRA Property Evaluation Guidelines', details the approach KBRA uses to determine its estimate of sustainable net cash flow (KNCF) and value for the individual properties .......

    News Round-up 14 June 2011

  • CMBS recovery analytic updated

    S&P has updated its tranche recovery analytic for US conduit/fusion CMBS transactions after incorporating market feedback it received following its January 2011 update and internal analysis.

    The analytic utilises macroeconomic forecasts made by S&P's economists to reflect the impact such economic scenarios may have on the recovery prospects of CMBS bonds throughout the capital structure. S&P explains that its CMBS .......

    News Round-up 13 June 2011

  • Pro forma warning

    The pro forma underwriting of commercial real estate loans is not currently a widespread practice among originators of loans used in US CMBS, according to a new Moody's report. However, the rating agency expresses concerns as to how underwriting practices may evolve as the cycle advances.

    "At present, Moody's sees only limited amounts of pro forma underwriting taking place," says Moody"s director .......

    News Round-up 13 June 2011

  • CMBS delinquencies in 'holding pattern'

    Delinquencies for US CMBS remained largely in a holding pattern for the third consecutive month, according to Fitch's latest delinquency index results. Late-pays increased by 6bp to end the month at 8.81%. The small net delinquency rate that increased in each of the last three months came in stark contrast to those logged over the previous two years, with the .......

    News Round-up 10 June 2011

  • CMBS balloon payments fall again

    The percentage of US CMBS loans paying off on their balloon date fell for the second straight month, according to Trepp's May pay-off report. While April's reading shows a sharp fall off, the percentage of loans paying off in April was well above the 12-month rolling average. While the rate fell once more in May, the latest reading was below .......

    News Round-up 10 June 2011
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