CMBS

  • Opus completes multifamily Freddie deal

    Opus Bank has securitised US$509m of its multifamily loans through a Freddie Mac-sponsored 'Q-deal' securitisation. One class of Freddie-guaranteed notes was issued and purchased by Opus.

    Opus says the deal is "a novel transaction that reduces Opus' commercial real estate concentration, lowers its risk weighted assets, increases its total risk-based capital ratio, lowers its loan-to-deposit ratio and improves its liquidity". .......

    News Round-up 3 January 2017

  • Lack of occupancy triggers EOD

    The 129-131 Greene Street loan, securitised in GSMS 2014-GC26, has been transferred to special servicing due to an event of default caused by a tenant trigger event. Fitch designated the asset as a loan of concern last month.

    129-131 Greene Street is secured by a two-storey condo in New York City, 100% leased to a Google subsidiary on a 10-year triple-net .......

    News Round-up 23 December 2016

  • Property prospects

    Hiring remains flat, but CMBS up-tick possible

    CMBS could provide a hiring boost in the US in 2017, while structured finance recruitment is likely to remain mostly flat globally. In the UK, senior hires are few and far between, but banks are still recruiting junior executives to develop smaller structuring teams.

    Chadrin Dean, president and managing partner for Sandford Rose Associates,
    Integrated Management, says that over the last .......

    News Analysis 23 December 2016

  • IRT internalisation completed

    RAIT Financial Trust has completed its transaction to internalise the management of Independence Realty Trust (IRT), following the sale of Independence Realty Advisors and certain assets of Jupiter Communities to IRT for US$43m (SCI passim). IRT has also repurchased all 7.3m shares of IRT common stock owned by certain RAIT subsidiaries for US$62.2m.

    As a result of the internalisation of .......

    Job Swaps 22 December 2016

  • Class X appeal dismissed

    The English Court of Appeal has reached the same conclusion regarding the Titan CMBS class X claim as the High Court in April (SCI passim). Accordingly, the appeal by Credit Suisse Asset Management - the class X noteholder in the TITN 2006-1, 2006-2, 2007-2 and 2007-CT1 deals - has been dismissed.

    The class X noteholder had issued proceedings under Part .......

    News Round-up 22 December 2016

  • Mesdag retranching rated

    Fitch and S&P have rated Commercial Mortgage Funding, a securitisation of a €27.9m portion of the €370.6m Mesdag (Delta) class A notes. The transaction is financed by the issuance of three long-dated pass-through principal-only notes, due January 2035.

    The notes comprise £23.4m BBB+/BBB class As, £2.2m BBB/BB+ class Bs and £2.2m BB/BB- class Cs. Mesdag (Delta), which is due in .......

    News Round-up 22 December 2016

  • Primary servicing volumes up

    In its latest quarterly US RMBS Servicer Handbook, Fitch highlights the rapid growth of portfolios among smaller mortgage servicing companies. The portfolios of US special servicers with loan counts of less than 400,000 are growing at a faster pace than the servicing industry as a whole, according to the agency.

    These smaller special servicers reported an average year-over-year growth of .......

    News Round-up 21 December 2016

  • Mixed blessing

    Retention rules not so onerous for CRE CLOs

    Risk retention requirements raise interesting issues for the CRE CLO sector. The typical CRE CLO model already includes holding the bottom of the capital stack, but the way in which that is done may well fall foul of the regulators' rulebook.

    The fact that CRE CLO sponsors frequently retain 10% or more of the bottom of the capital stack should .......

    News Analysis 20 December 2016

  • Comfort zone

    Investor interest in SFR muted, despite potential

    A backdrop of declining homeownership in the US and a growing number of renters is driving growth in the single-family rental (SFR) securitisation market. However, limited volume, call risk and operational issues mean that the sector can be overlooked by investors, who remain more comfortable with RMBS and CMBS.

    Earlier in the year Morgan Stanley RMBS analysts highlighted that the .......

    News Analysis 16 December 2016

  • CRE group continues expansion

    Colliers International Group (CIG) and Colliers Parrish International (CPI) have signed a merger agreement. CPI is the largest independently owned Colliers affiliate in the US, providing investment sales, lease brokerage, capital markets, valuation and advisory and also property management services.

    "Integrating CPI with our existing operations in Northern California significantly increases our scale and coverage, allowing us to seamlessly and .......

    Job Swaps 16 December 2016

  • 'Mixed effects' from rate hikes

    The US Federal Reserve has raised interest rates from 0.25% to a range of 0.50%-0.75%, which will have varied implications for structured finance, according to Moody's. The rating agency adds that it expects the Fed to raise rates three more times in 2017 to 1.25%-1.50% year-end.

    Moody's comments that US consumers are generally "well-positioned to cope with rising debt expenses .......

    News Round-up 15 December 2016

  • Euro issuance drops

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest securitisation data report. This represents a decline of 46.5% from 2Q16 (€75bn) and a decline of 30.3% from 3Q15 (€57.6bn).

    Of the €40.2bn issued, €16bn was placed (representing 39.8% of issuance), compared to €29.3bn placed in 2Q16 (representing 39.1%) and €18.6bn placed in 3Q15 (representing 32.3%). .......

    News Round-up 15 December 2016

  • Euro secondary unmoved

    The Fed's announcement yesterday appears to have had little effect so far as the European securitisation secondary market resolutely sticks to recent patterns.

    There continue to be pockets of activity across the ABS/MBS secondary market. Tone generally remains positive and spreads unchanged with the exception of Portuguese paper, which continues to edge wider.

    However, CLOs are busier in comparison with .......

    SCIWire 15 December 2016

  • LatAm markets 'will rebound'

    Donald Trump's election victory has implications far beyond the US, not least in Mexico, where potential US policy changes will weigh on economic growth. Mexican RMBS should remain steady, however, while Moody's believes Argentina and Brazil are set to return to growth in 2017, helping to support the credit quality of assets backing securitisations in those countries.

    The Mexican RMBS .......

    News Round-up 14 December 2016

  • Houston exposure eyed

    Morningstar Credit Ratings added seven US CMBS loans backed by Houston collateral to its watchlist in November, totalling US$263.5m in UPB, which was over two times the balance added for the second-most active market - Washington, DC. Over the past 12 months, the balance of Houston loans on the agency's watchlist has grown by more than 50% to US$748.1m, moving .......

    News 13 December 2016

  • Euro ABS/MBS ticks over

    The European ABS/MBS secondary market continues to tick over.

    As with the previous week it's been a solid if unspectacular start to this. BWICs continue to drive the action and trade well. For now, sentiment remains positive, albeit with some softening of tone in weaker peripherals, especially Portuguese names.

    There are currently three BWICs on the European ABS/MBS schedule for .......

    SCIWire 13 December 2016

  • Maturity wall shrinking

    Almost US$190bn of US CRE loans in CMBS loans have been paid off or liquidated from the start of 2015 through the first three quarters of 2016, according to Trepp. The firm adds that this represents a large portion of the wall of maturities, which is comprised of CMBS loans with final payment dates between 2015 and 2018. At the start .......

    News Round-up 12 December 2016

  • Retail dominates delinquencies

    US CMBS delinquencies rose by 4bp in November to 3.29% from 3.25% a month earlier, largely due to a shrinking index denominator, according to Fitch's latest index results for the sector. Resolutions of US$527m exceeded new delinquencies of US$410m, while US$8.8bn of portfolio run-off exceeded Fitch-rated new issuance volume of US$2.6bn.

    Both the largest new delinquency and the largest resolution .......

    News Round-up 12 December 2016

  • RFC issued on rent-roll standard

    The commercial arm of the Mortgage Industry Standards Maintenance Organization (MISMO) has released for industry comment a proposed standard for the maintenance and sharing of commercial and multifamily real estate rent-roll information (SCI 20 October). The standard includes 87 fields of property and financial data, as well as an easy way to maintain and share the data through widely used .......

    News Round-up 12 December 2016

  • Maturity defaults inch up

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe increased to 21.8% from 21.1% at end-November. The delinquency rate for continental European senior loans decreased to 67.9% from 68.6%, while the rate for UK loans remained at 34%. Overall, the senior loan delinquency rate decreased to 54.7% from 55.4%.

    .......

    News Round-up 9 December 2016

  • Upstart firm poaches CRE vets

    World Class Capital Group has bolstered its team with several former Credit Suisse hires. The firm has brought on board Paul Smyth, Chris Callahan and Cary Williams, as well as bringing in Jeremy Stoler and Ed Mikus, who will both join in January.

    Smyth is now executive md for World Class Capital and was previously chief credit officer for Credit Suisse's .......

    Job Swaps 9 December 2016
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