CMBS

  • 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

  • SCI Start the Week - 16 March

    A review of securitisation activity over the past seven days

    SCI NPL Securitisation Awards 2020
    As a result of COVID-19, the SCI NPL Securitisation seminar has unfortunately had to be postponed and along with it the inaugural SCI NPL Securitisation Awards ceremony. Nominations remain open and a revised deadline for them will be announced in due course. Further information and details of how to pitch can be found here.

    This week's stories
    AMC .......

    News 16 March 2020

  • Native blockchain securitisation debuts

    Sector developments and company hires

    Ares facility inked
    Non-Standard Finance (NSF) has entered into a new six-year securitisation facility totalling £200m, at pricing that is more favourable than its existing facility and is expected to result in a pre-tax saving of approximately £1m in the year ended 31 December 2020. On satisfaction of certain conditions, the new facility – which is provided by credit funds .......

    Market Moves 13 March 2020

  • Multi-tranching?

    Investor diversification raises triple-tranche prospects

    Seer Capital sees a future for triple tranche structures in significant risk transfer transactions. One driver is the market’s need to further diversify the investor base.

    According to Richard d’Albert, co-cio and cro at Seer Capital: “We are going to see more dual- and multi-tranche structures. It’s just a more efficient way for banks to execute thicker hedges .......

    News Analysis 13 March 2020

  • Definition debate

    Call for coalescence around ESG standards

    Impact is still being defined in the capital markets, both at a conceptual level and in terms of general product development. The terms ‘ethical’, ‘ESG’, ‘impact’ and ‘responsible’ mean different things to different participants. To avoid fragmentation and misunderstandings, the securitisation industry therefore needs to coalesce around specific ESG definitions and performance standards.

    Amitji Odedra, associate director at .......

    News Analysis 12 March 2020

  • AXA IM creates two key units

    Sector developments and company hires

    AXA IM restructuring
    AXA Investment Managers intends to create a new €137bn business unit - called AXA IM Alts - as part of a wider restructuring of the business into two key divisions, with the aim of creating a simplified and more focused organisation. The other new business unit would be known as AXA IM Core. Under the leadership of .......

    Market Moves 11 March 2020

  • Retail repositioning

    Euro CMBS sponsor strategies weighed

    The trend towards online shopping has had an impact on traditional retail outlets, such as shopping centres. Sponsors are consequently undertaking repositioning and restructuring activity, but the move could ultimately lead to a reduction in the volume of European retail CMBS coming to the market.

    Edward Twort, director, CMBS at S&P, says: “The retail market has found itself .......

    News Analysis 6 March 2020

  • IRPH index ruling 'credit negative'

    Sector developments and company hires

    CMBS property sales
    KBRA has been notified of the sale of 29 properties in the Eos (ELoC No. 35) CMBS. All of the properties are located in the Netherlands and nearly all (28) are industrial assets. As a result of the sale, an amount equal to €74.3m will be applied in mandatory prepayment of the senior loan, representing 17.9% of .......

    Market Moves 3 March 2020

  • Retail hit

    Potential impact on Italian CMBS eyed

    Retail and tourism are the sectors which have been most affected by the outbreak of COVID-19 (Coronavirus). As such, the virus is expected to have a negative impact on Italian CMBS backed by retail assets.

    Italian retail property loans that are securitised have historically not experienced a higher default probability. However, refinancing prospects at loan maturity could be .......

    News 2 March 2020

  • Diversification offered

    European ABS market update

    The European ABS pipeline is swelling in the run-up to March. Newly announced deals are providing sought-after diversification, not only in terms of assets but also jurisdictions.

    Notably, Domivest is in the market with its second Dutch buy-to-let RMBS. Dubbed Domi 2020-1, the transaction is backed by a provisional €340m pool consisting of 1,288  mainly interest-only mortgage loans .......

    Market Reports 28 February 2020

  • GM withdrawal from Aussie autos 'credit negative'

    Sector developments and company hires

    CMBS analytics platform
    Thetica Systems has launched a web platform for CMBS pricing and analytics tools, which can be used to quickly analyse bid lists, gather market colour and perform deep analysis. Clients control the requirements for access to inputs and calculations.

    EMEA
    PGGM recently promoted Youssef Sfaif to the position of director, credit and insurance linked investments. The role .......

    Market Moves 25 February 2020

  • Social factors

    Positive ESG scores for post-crisis vintages

    ESG relevance scores (ESG.RS) are more likely to be negative for seasoned securitisations, according to Fitch. The most recent issuance vintages demonstrate a balance of positive and negative ESG factors.

    Weak transaction structures prior to the crisis are identified as a factor contributing to the negative ESG.RS found in those vintages. In addition, Fitch says: “Some governance issues .......

    News 24 February 2020

  • Rare CMBS prepped

    BofA brings 'one-off' Dutch transaction

    BofA is in the market with a Dutch CMBS, dubbed Taurus 2020-1 NL. The €620.6m deal is the first from the programme to be backed solely by Dutch assets.

    Rated by KBRA, the transaction comprises €324.7m triple-A rated class A notes, €98.8m double-A minus rated class B notes, €65.9m single-A minus rated class C notes, €65.9m triple-B minus rated class .......

    News 24 February 2020

  • SRT fund launched

    AXA engineers return

    AXA Investment Managers has completed its eighth partner capital solutions fund. With the move, the firm is seeking to capitalise on diversification opportunities and volume growth in the risk transfer market.

    According to Deborah Shire, global head of structured finance at AXA Investment Managers: "The reg cap market has been transformed into a full-fledged alternative investment opportunity, with .......

    News 21 February 2020

  • Rarity value

    European ABS market update

    The European ABS market remains characterised by a lack of free flow. Against this backdrop, the senior notes of the Spanish Gedesco Trade Receivables 2020-1 transaction are attracting investor interest, due to its rarity value.

     “It is still very much the same tone. Generally, we are not seeing a huge amount of trading,” one trader notes.

    He .......

    Market Reports 21 February 2020

  • Minority equity interest acquired

    Sector developments and company hires

    Equity interest acquired
    Affiliated Managers Group has acquired a minority equity interest in Comvest Partners. The Comvest management team will be investing 100% of the transaction proceeds directly into future funds to support the firm’s growth initiatives. Following the transaction, the senior partners of Comvest will continue to own a significant majority of the equity of the business.

    HPI .......

    Market Moves 20 February 2020

  • C-PACE fund debuts

    Standalone platform leads origination

    Samas Asset Management (SAM) has launched its debut fund, a closed-end vehicle dubbed SAMAS FUNDING PACE FUND LLLP Series 2020. The Samas entities are now the ‘‘largest standalone commercial PACE origination platform in the US’’.

    The PACE bonds in this fund represent a diversified portfolio associated with small- and medium-sized commercial properties.

    ‘‘Projects that we finance generate .......

    News 20 February 2020

  • Ares co-founder steps down from board

    Sector developments and company hires

    North America
    Ares Management Corporation has appointed Kipp deVeer to its board. Concurrently, John Kissick - a retired co-founder of Ares - is stepping down from the board. DeVeer, who joined the firm in 2004, is a partner and head of the Ares Credit Group. He serves as a member of the Ares executive management committee and the firm’s management .......

    Market Moves 17 February 2020

  • Italian private market JV inked

    Sector developments and company hires

    EMEA
    Oxane Partners has appointed Andrew Tisdall as director, portfolio management solutions. Tisdall will report to Sumit Gupta, co-founder of Oxane, and will focus on expanding the firm’s portfolio management business in Europe. Tisdall has more than 22 years of experience in loan operations at Mount Street, Morgan Stanley and Barclays. He joins Oxane from Mount Street, where he was .......

    Market Moves 13 February 2020

  • Doubling up

    European ABS market update

    A pair of deals in the pipeline have captured the interest of European ABS market participants. Skipton Building Society’s Darrowby No. 5 RMBS marks the lender’s return to the market after four years, while DTGO Corp’s Magenta 2020 transaction is the first CMBS linked to SONIA.

    One portfolio manager points to the maturing of its TFS funding as a potential .......

    Market Reports 13 February 2020

  • CRT upgraded due to 'substantial' increase in CE

    Sector developments and company hires

    Canadian MBS ETF
    BMO Asset Management has launched a new stable of ETFs trading on the TSX, including the first MBS ETF in Canada. Dubbed BMO Canadian MBS Index ETF, the offering aims to provide unique exposure to a segment of the MBS market fully guaranteed by the Canada Mortgage and Housing Corporation (CMHC). The pools each have a term .......

    Market Moves 12 February 2020
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