CMBS

  • EIF calls for guarantee applications

    Sector developments and company hires

    EIF calls for guarantee applications
    The European Commission has unlocked €1bn from the European Fund for Strategic Investments (EFSI) that will serve as a guarantee to the EIF and allow it to issue special guarantees to incentivise lenders to provide liquidity to at least 100,000 European SMEs and small mid-cap companies hit by the economic impact of the coronavirus pandemic, .......

    Market Moves 8 April 2020

  • Modelling delinquency deluge

    Mortgage market advisers and consultants are struggling to f...

    “Our clients are modelling a range of scenarios but are preparing themselves for the worst case including sustained levels of unemployment. Hopefully it won’t be that bad, but they need to prepare themselves,” says Bernadette Kogler, chief executive officer of RiskSpan, a Washington, DC-based analytics and modelling firm which has particular expertise in mortgage markets.

    Riskspan clients include .......

    News 8 April 2020

  • CLO stress scenario updated

    Sector developments and company hires

    CLO stress scenario updated
    Fitch is set to apply an updated stress scenario to all CLO portfolios involving issuers with greater vulnerability to disruptions caused by coronavirus. The agency’s previous scenario focused on seven industries vulnerable to impacts from the pandemic, but will be expanded to include issuers with loans in CLOs from the automobile industry, as well as all .......

    Market Moves 7 April 2020

  • Negative outlook for asset performance

    Sector developments and company hires

    Negative outlook for asset performance
    Fitch is updating its rating assumptions for all global structured finance sectors to incorporate the economic impact of the coronavirus and related mitigation measures. The agency expects the global pandemic to result in an unprecedented economic contraction and while the rating effects will vary meaningfully across asset classes, asset performance deterioration is anticipated in almost .......

    Market Moves 6 April 2020

  • Breathing space?

    EU banks benefit from Basel 3 delay

    The Basel Committee's decision last week to delay implementation of the final Basel 3 rules by a year (SCI 30 March) gives banks and supervisors some breathing space to respond to the coronavirus crisis. However, the delay is expected to be more beneficial for EU banks compared to US banks.

    Fitch, for one, notes that the delay .......

    News 2 April 2020

  • CRR compliance for NHG guarantee

    Sector developments and company hires

    EMEA
    Addleshaw Goddard has hired structured finance partner Rachel Kelly from McDermott Will & Emery. Kelly has three decades of experience at major international law firms, including as a partner at both Clifford Chance and Macfarlanes. Her work has been across the full spectrum of structured finance and debt capital markets transactions, public and private, national and international, advising the full .......

    Market Moves 1 April 2020

  • CECL delayed

    EU banks await IFRS 9 relief

    The US Fed, the FDIC and the OCC last week approved an extension of the new credit loss accounting standard CECL until 2022. No equivalent action has been taken for IFRS 9 on the EU side, however.

    According to the US regulators’ joint statement, banking organisations that are required under US accounting standards to adopt CECL this year .......

    News 31 March 2020

  • Basel 3 implementation deferred

    Sector developments and company hires

    APAC fund launch
    Pierfront Capital Fund Management has been awarded its capital market services license for fund management by the Monetary Authority of Singapore. It has also announced the first close of the Keppel-Pierfront Private Credit Fund, which aims to provide debt solutions to corporates or projects predominantly in the real asset sectors of the Asia-Pacific region. Sponsored by Pierfront .......

    Market Moves 30 March 2020

  • Capacity constraints

    Covid-19 not yet posing solvency issues

    Government and central bank actions have kept both the financial system and the real economy afloat in the short-term, amid the coronavirus disruption. The severity of this crisis for company and household finances will depend on the length of the current outbreak and political will, however.

    According to Rabobank credit analysts: “Covid-19 is now an imminent issue for .......

    News Analysis 30 March 2020

  • Euro CLO coronavirus exposure mitigated

    Sector developments and company hires

    Euro CLO coronavirus exposure mitigated
    A portion (15%) of European CLO collateral is derived from the industries most vulnerable to the coronavirus pandemic, according to Moody’s. However, the agency says that the relatively few near-term maturities of affected issuers will help mitigate the negative impact.

    The European CLOs that Moody’s rates have a median exposure of 14.7% to the sectors most .......

    Market Moves 27 March 2020

  • PPIP call

    CRT and non-agency MBS still in need of purchasing power

    Non-agency MBS and CRT deals in particular are still in need of government support, according to securitised product research analysts at JPMorgan. They suggest it could come in the form of a Public Private Investment Programme (PPIP) similar to that introduced in 2009 to support MBS through combining Treasury and private capital to buy legacy assets.

    “While the .......

    News 27 March 2020

  • UK WBS hit expected

    Sector developments and company hires

    APAC
    Frontier Advisors has appointed Joe Clark as senior consultant in its alternatives and derivatives research team, based in Melbourne, Australia. Clark was previously senior portfolio manager in QIC’s global multi-asset team and has also worked at Suncorp Investment Management. He has experience in ILS manager and investment research.

    North Dock debuts
    Barclays Private Bank has closed North Dock No. .......

    Market Moves 26 March 2020

  • Forced selling

    REITs struggling to meet margin calls

    US MBS rallied yesterday (25 March) in the wake of the announcement that Congress has agreed the terms of a US$2trn stimulus package. However, they remain well down on the week, say dealers.

    “The Fed announcement has firmed things up. It has stabilised the market but not taken away all the spread widening,” says one. But the market .......

    News Analysis 26 March 2020

  • Call for TALF expansion

    Sector developments and company hires

    BlackRock hired
    The New York Fed has retained BlackRock Financial Markets Advisory as a third-party vendor to operationalise its purchases of agency CMBS and transact with primary dealers on behalf of the SOMA. BlackRock was selected on a short-term basis to serve as an investment manager after considering its expertise in trading and analysing agency CMBS in the secondary market, .......

    Market Moves 25 March 2020

  • TALF response mixed

    Fed facility could be found wanting

    The US Fed’s introduction of the new iteration of the Term Asset-Backed Securities Loan Facility, or TALF 2.0 (SCI 23 March), was one of the measures that contributed to some steadying of broader markets yesterday. However, the facility could meet with a mixed response from securitisation market participants and there are already calls for it to be expanded.

    News Analysis 24 March 2020

  • SASB stress

    RWN action reflects hotel pressure

    Fitch has placed 81 classes from 15 US single-borrower hotel CMBS on negative watch, reflecting the significant economic impact to the sector from the coronavirus pandemic. The magnitude of defaults among CMBS loans secured by hotels will nonetheless depend on the length of time that travel is disrupted and social distancing measures remain in place, as well as borrower .......

    News Analysis 24 March 2020

  • Fed revives the TALF programme

    Sector developments and company hires

    Return of the TALF
    The US Fed announced a slew of new measures to support the credit markets this morning, including the revival of the Term Asset-Backed Securities Loan Facility (TALF), first seen in the wake of the global financial crisis. Under the TALF, the New York Fed will commit to lend to an SPV on a recourse basis and .......

    Market Moves 23 March 2020

  • EIB mulls SME ABS purchase plan

    Sector developments and company hires

    Dealer credit facility launched
    The US Fed has established a Primary Dealer Credit Facility (PDCF) available from 20 March, which will offer overnight and term funding with maturities up to 90 days. The facility will be in place for at least six months and may be extended as conditions warrant. Credit extended to primary dealers under the facility may be .......

    Market Moves 18 March 2020

  • Liquidity concerns

    European ABS pipeline coming to a halt

    The European ABS primary market is grinding to a halt amid coronavirus-related volatility, with many transactions postponed. Among the relief measures implemented by the Bank of England and the ECB last week, the new UK Term Funding Scheme for SMEs (TFSME) could inhibit UK RMBS volumes further.

    “Spread levels are difficult to predict in the current environment,” says .......

    News Analysis 17 March 2020

  • Greencoat liquidator appointed

    Sector developments and company hires

    EMEA
    Ocorian has appointed Abigail Holladay as director of transaction management. Based in London, Holladay will manage restructuring transactions across Europe. She has previously held senior positions at Law Debenture and Deutsche Bank. Holladay has experience covering waivers, defaults, delegate/successor trusteeships and complex debt restructurings.

    Greencoat winding up
    In connection with the BUMF 4, 5, 6 and 7 CMBS, the .......

    Market Moves 16 March 2020

  • Elevated risk

    US conduit hotel loans vulnerable

    Hotel loans securitised in US conduit CMBS are more vulnerable to coronavirus disruption than hotel loans in single-borrower CMBS, according to DBRS Morningstar. The agency estimates that the impact of the virus threatens to increase the overall CMBS delinquency rate to 1.38% from 1.13%.

    The potential for a decrease in hotel revenue means that US$2.58bn in securitised conduit .......

    News 16 March 2020
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