CMBS

  • Multifamily risk-sharing debuts

    Freddie Mac has priced its first offering of multifamily aggregation risk transfer certificates. The US$1bn FMPRE 2017-KT01 is backed by multifamily mortgage loans that are awaiting sale into K-Series securitisations.

    KT certificates are designed to transfer to certain investors a portion of the credit risk associated with eligible multifamily mortgage loans prior to sale into K-Series CMBS. On the settlement .......

    News Round-up 3 February 2017

  • Origination platform acquired

    Walker & Dunlop has acquired Deerwood Real Estate Capital's loan origination platform, which specialises in sourcing debt and equity for all commercial real estate asset classes. Sixteen of the firm's commercial loan originators are expected to join Walker & Dunlop's capital markets group, including Deerwood co-founders David Rosenberg and Abe Katz.

    "Deerwood marks another fantastic acquisition of talented loan originators .......

    Job Swaps 2 February 2017

  • CMBS liquidation volume rockets

    US CMBS liquidation volume jumped in January to US$1.4bn, according to Trepp, crossing the US$1bn mark for the first time in 12 months. January's figure is more than double the US$595.3m total from December.

    January saw 99 loans averaging US$14.6m disposed. Loss severity also climbed over 14 percentage points to 57.83%, driven by heavy losses on several large retail and .......

    News Round-up 2 February 2017

  • SFR operators change tack

    Single-family rental (SFR) transactions are benefitting from an improvement in sponsors' business models and strategies, says Moody's. Sponsors have moved away from the bulk purchases in depressed markets that started their businesses to strategies which improve the quality of the properties backing their transactions.

    "With the US housing market recovering from the financial crisis and the inventory of distressed homes .......

    News Round-up 2 February 2017

  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global securitised products investor survey, accounting for 28% of the responses. Nevertheless, half of those polled expect their allocation to securitised products to stay in line with their current allocation, while 36% expect to increase their allocation, compared with 37% in 3Q16.

    The Morgan Stanley survey .......

    News 2 February 2017

  • CRE market to 'remain favourable'

    CRE Finance Council's latest annual member survey suggests that the US commercial real estate market should remain favourable in 2017, with the pace of economic growth rising, interest rates incrementally higher, new construction relatively low, and ample availability of capital and credit. However, CMBS spreads are expected to remain volatile, due mainly to external factors such as contagion from other .......

    News Round-up 2 February 2017

  • Land Securities tender completed

    Land Securities has confirmed it will accept for purchase an aggregate principal amount of CMBS notes across three series equal to £634.68m at a cash cost of £759.1m as part of its tender offer. At the same time, the firm will issue a £400m seven-year bond (paying a coupon of 1.974%) and a £300m 12-year bond (2.399%) under its Land .......

    News Round-up 2 February 2017

  • Surprise delinquency dip

    The Trepp US CMBS delinquency rate fell modestly in January to 5.18%, a drop of 5bp from December. The rate is now 86bp higher than the year-ago level.

    Trepp notes that last month's dip comes as a bit of a surprise, given the volume of loans from the 2007 vintage coming due this year. "We will now watch to see .......

    News Round-up 1 February 2017

  • FNMA loan to pay down SFR deals

    Invitation Homes last week filed a preliminary prospectus with the US SEC in which it notes that it has secured a US$1bn 10-year loan commitment from Fannie Mae and Wells Fargo and that it will use these proceeds to pay down all or a portion of the loans backing a pair of single-family rental securitisations. Moody's says this loan commitment .......

    News Round-up 31 January 2017

  • Global MBS fund launches

    PIMCO has launched a global MBS fund. GIS Mortgage Opportunities Fund is an absolute-return oriented, securitised asset-focused fund designed to capitalise on dislocations across agency RMBS, non-agency RMBS and CMBS markets.

    PIMCO says the fund has the ability to allocate across all subsectors of the global securitised market and seeks to efficiently manage interest rate and credit risk across different .......

    Job Swaps 31 January 2017

  • Academy adds structured products pair

    Academy Securities has made two additions to its structured products group, poaching Steve Kenney and Pierce Derkac from CapRok Capital. They will focus on multiple asset classes within structured products, including RMBS, CMBS, ABS, CDOs and CLOs.

    Kenney and Derkac join as svps. Kenney was a senior member of the sales and trading team within securitised products and special situations .......

    Job Swaps 31 January 2017

  • Euro secondary sluggish

    Activity across the European securitisation secondary market remains sluggish.

    After a small pick-up in activity on Wednesday and Thursday, last week closed with volumes easing and has opened this in similar fashion thanks to a combination of wider market volatility and month-end. Nevertheless, sentiment remains positive across securitisation secondary and BWICs when they do appear continue to trade strongly, which .......

    SCIWire 31 January 2017

  • Loan drops level off

    KBRA has examined how the composition of US CMBS conduit pools changed over the course of the rating process based on an analysis of the 2013 through 2016 vintages. The results show that overall transactions continued to experience meaningful pool changes during the rating process last year.

    Nearly a quarter of the transaction balance (24.3%) changed last year, due to .......

    News Round-up 30 January 2017

  • Land Securities tap prepped

    Land Securities Capital Markets is expected to issue two additional classes of notes, the proceeds of which will be used to purchase a portion of the existing class A3, A4, A5 and A10 notes. Provisionally rated double-A by Fitch, the new class A12 and A13 notes will be issued under the SPV's £6bn multi-currency issuance programme, with which they will .......

    News Round-up 27 January 2017

  • L-shaped retention debuts

    Citi and Deutsche Bank are in the market with CD 2017-CD3, the first conduit CMBS to comply with the US risk retention rules by employing an 'L-shaped' structure. The US$1.3bn deal - rated by Fitch, KBRA and Moody's - is collateralised by 52 commercial mortgage loans secured by 59 properties.

    On the securitisation closing date, affiliates of the transaction sponsors .......

    News 24 January 2017

  • Euro secondary still seeks supply

    Demand continues to outstrip supply in the European securitisation secondary market.

    Tone remains positive across the board and investor appetite is still strong in every sector. However, there continues to be next to no supply via BWICs or new issuance. Consequently, when auctions do appear they trade exceptionally well and are keeping spreads flat to slightly tighter.

    There is currently .......

    SCIWire 24 January 2017

  • CMBS pro named president

    ReadyCap Commercial has named Anuj Gupta as president, responsible for loan originations, affinity relationships, capital markets, credit and asset management. He has played an active role in the firm since 2013 and will now join the executive management team full-time.

    Gupta has more than 20 years of experience in commercial real estate lending, having previously led CRE capital markets and .......

    Job Swaps 23 January 2017

  • CRE lawyer promoted

    Sutherland has elected three new partners and nine new counsel to the firm. One of the new counsel - Brooke Parris - has securitisation expertise.

    Based in Atlanta, Parris represents lenders, servicers, developers and pension fund advisers in various aspects of real estate finance and development. She devotes significant time advising clients on structured finance and real estate finance (including .......

    Job Swaps 20 January 2017

  • Investment grade loss for CMBS 2.0

    The US CMBS 2.0 market has seen its biggest loss to date, following the liquidation of the US$48.9m Hudson Valley Mall loan - securitised in CFCRE 2011-C1 - at an 80.4% severity on the US$52.4m original balance. The loss forced full write-downs on the NR, G and F classes, while the triple-B minus rated E tranche absorbed a US$7.2m hit.

    News 20 January 2017

  • Euro ABS/MBS accelerates

    Activity has accelerated in the European ABS/MBS secondary market after a slow start to the week.

    The continuing strong tone and investor cash reserves continue to fuel demand for paper, which has generated increased bilateral trading in most sectors over the past two sessions. At the same time, BWIC volumes remain low as sellers keep their powder dry, while the .......

    SCIWire 19 January 2017

  • Net negative

    GSE reform could have widespread impact

    Privatisation of Fannie Mae and Freddie Mac could have widespread negative consequences for the US RMBS and CMBS markets, as well as on availability of credit for the housing market. Encouraging private label issuance to step in as the GSEs scale back remains a significant challenge.

    Treasury Secretary designate, Steven Mnuchin, recently stated that Fannie Mae and Freddie Mac should .......

    News Analysis 19 January 2017
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