CMBS

  • 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

  • Euro secondary keeps positive

    Tone across the European securitisation secondary market continues to be positive.

    After a quiet start to the week, yesterday saw a flurry of BWICs from a range of sectors driving activity, most of which were easily absorbed and traded in line with expectations. Consequently, the bulk of secondary spreads remain unmoved.

    Today sees more supply from a variety of sectors, .......

    SCIWire 8 December 2016

  • CMBS record volume observed

    US CMBS private-label pricing volume totalled US$11.9bn in November, which was the highest monthly volume since September 2014. However, Kroll Bond Rating Agency notes that year-to-date supply of US$64.5bn is still down 28.8% year-over-year.

    There was only one rating downgrade in the month, as well as 364 affirmations. The rating for one class of STRIPs 2012-1 was placed on watch .......

    News Round-up 7 December 2016

  • CMBS pay-offs dip

    Trepp reports that the percentage of US CMBS loans that paid off on their balloon date dipped in November to 66.8%, just below the October level of 68.6%. Over the last four months, the range between the highest and lowest levels has been less than 2%, as a little over two-thirds of the aggregate balance has consistently paid off.

    Last .......

    News Round-up 7 December 2016

  • Arrow enters Italian market

    Arrow Global Group is entering the Italian market with the acquisition of Zenith Service. It will purchase the servicing business for €17m, subject to regulatory approval by the Bank of Italy.

    Zenith is a leading master servicer in the €168bn Italian structured finance market and also services salary assignment loans (CQS). As of June 2016, the estimated stock of the .......

    Job Swaps 6 December 2016

  • CRE platform expands

    Silverpeak Real Estate Finance is expanding its product offering to include non-recourse floating-rate balance-sheet debt and fixed-rate or floating-rate subordinate debt for stabilised or transitional properties. These new capabilities will be funded by additional equity investment from affiliates of Elliott Management Corporation.

    The new products are offered in addition to what has been the firm's core business for the past .......

    Job Swaps 6 December 2016

  • North American outlook 'stable'

    Stability will likely remain for structured finance ratings in the US and Canada next year, although some modest asset-level deterioration is likely as performance in many sectors has peaked, says Fitch. The rating agency adds that annualised net losses for subprime auto ABS could reach 12% in 2017, particularly for less established sub-prime issuers Fitch does not rate.

    The rating agency .......

    News Round-up 6 December 2016

  • LatAm outlook 'stable'

    Latin American structured finance transactions should enjoy a stable credit environment next year, despite subdued economic growth, says Fitch. Around 86% of the agency's rating outlooks for the sector are stable or positive, compared to 80% at the end of last year.

    Fitch's sector outlook is stable for consumer ABS, where adequate credit enhancement and structural features continue to protect .......

    News Round-up 6 December 2016

  • Euro secondary quiet

    The European securitisation secondary market has had another quiet start to the week.

    Italy was unsurprisingly the main focus yesterday, but as with broader markets securitisation secondary was little moved and flows were light. Italian paper has edged out a few basis points and there was some softening of tone in other peripherals, but for the most part ABS/MBS secondary .......

    SCIWire 6 December 2016

  • Call likelihood examined

    Fitch anticipates that an increasing number of US CMBS approaching the end of their expected life will have clean-up call options exercised over the next several years. Obstacles that may impede them from being exercised efficiently include ambiguity in deal documents, a lack of standardisation of processes and potential litigation costs.

    Fitch notes that PSAs for more recently-issued conduit transactions .......

    News Round-up 5 December 2016

  • Servicers brace for CMBS wall

    Some US$12bn of the US$92bn of US commercial loans maturing during 2017 could default and end up in the hands of special servicers, says S&P. There will be nearly US$120bn in outstanding performing loans scheduled to mature through 2018, most of which were underwritten in 2006 and 2007, raising questions about whether special servicers will be ready.

    The year-end delinquency .......

    News 2 December 2016

  • Risk retention to affect CMBS liquidity

    The impending US risk retention rule could hamper liquidity for maturing CMBS loans, says Morningstar Credit Ratings. The rule comes into effect on 24 December (SCI passim).

    The agency believes loans maturing this month may suffer from a decrease in liquidity. It says the potential liquidity contraction will add to the refinancing challenge of 2007 vintage loans, many of which .......

    News Round-up 2 December 2016

  • Loss severity spikes

    Trepp's latest US CMBS loss analysis reflects a spike in the average loss severity of loan dispositions. For the month of November, US$671m across 58 loans was liquidated with losses. Average loan size fell from US$15.5m in October to US$11.6m, while the monthly loss rate for all loans climbed to 56.38%.

    Accounting for nearly 40% of last month's total liquidated .......

    News Round-up 2 December 2016

  • Delinquencies continue to climb

    The Trepp US CMBS delinquency rate continued to climb in November, reaching 5.03%, an increase of 5bp from October. The rate is now only 10bp lower than the year-ago level and 14bp lower since the beginning of the year.

    CMBS loans that were previously delinquent but paid off with a loss or at par totalled about US$800m last month. Removing .......

    News Round-up 1 December 2016

  • Euro ABS/MBS distracted

    New deals are continuing to keep focus way from the European ABS/MBS secondary market.

    "Primary is still distracting most players, with a couple of new deals in particular drawing most attention right now," says one trader. "The Red & Black autos deal is pretty straightforward, but the next Towd Point issue is more complex and it's taking a bit of .......

    SCIWire 1 December 2016

  • Recovery analysis RFC issued

    S&P is requesting feedback on its structured finance recovery analysis of US RMBS, US and Canadian CMBS and global CLOs. The rating agency's intention is to provide information that looks beyond its first-dollar-of-loss credit ratings in cases where its credit ratings are limited because of timeliness of payments, and to facilitate greater credit differentiation within its existing credit rating categories.

    News Round-up 30 November 2016

  • Retailer's exposure 'at risk'

    Hhgregg has reported lower earnings for the second fiscal quarter ended 30 September, following a series of store closures. Morningstar Credit Ratings suggests that the move may foreshadow a decline in the retailer's brick-and-mortar presence, potentially putting 43 properties backing US CMBS loans - totalling US$2.64bn in allocated property balance - at risk.

    "While we do not expect a slew .......

    News Round-up 30 November 2016

  • Strong performance spurs SFR upgrades

    The class B, C and D notes of Invitation Homes 2013-SFR1 have been upgraded by Moody's as a result of the steady build-up in equity in the properties backing the securitisation. IH 2013-SFR1 was the first-ever single-family rental securitisation (SCI 1 November 2013) and the move marks the first-ever upgrade for the segment.

    Moody's has upgraded the class B notes .......

    News Round-up 29 November 2016

  • Class X CMBS cash put aside

    The note trustee for Titan Europe 2006-5, US Bank (previously ABN Amro), has instructed the cash manager to retain €50m to provide for potential liability arising from class X noteholder contentions. As with a further four other Titan deals which are subject to class X noteholder litigation, it is unknown whether additional class X interest following default will ultimately rank .......

    News Round-up 29 November 2016

  • Euro secondary surge

    There is a surge in activity throughout the European securitisation secondary market.

    Activity has picked up across the board following the US holiday last Thursday and this week is seeing a notable pick-up in BWICs either side of month-end. Until now the buying bias remains and spreads have held up in the majority of sectors. However, continuing concern around the .......

    SCIWire 29 November 2016

  • Innovative Griffon deal welcomed

    Griffon Funding - which Barclays closed in September - has been hailed as an innovative model for banks seeking to reduce their regulatory capital requirements. The £2.43bn privately-placed true sale balance sheet CMBS is backed by 57 loans secured by 1,516 properties and over 12,000 lease contracts.

    Carlos Terré, deputy head of structured finance at Scope and lead analyst, states .......

    News 28 November 2016
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