CMBS

  • 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

  • Sporadic issuance projected

    European CMBS new issuance will focus on riskier loans in 2017, according to Moody's. The agency expects volume to be sporadic, as issuance focuses on more complex loans, coupled with bond pricing fluctuations in the wider securitisation market.

    Pricing will continue to be the main restriction for new issuance. Moody's anticipates wider securitisation market volatility, which is in stark contrast .......

    News Round-up 28 November 2016

  • 2017 CMBS slowdown expected

    A recent recovery in US CMBS issuance will not be sufficient to balance out an anaemic first half of the year, says Kroll Bond Rating Agency. The start of 2017 is also expected to be slow, and full-year 2017 issuance is predicted to undershoot 2016.

    CMBS issuance grew for six straight years before stopping abruptly this year as the global .......

    News Round-up 24 November 2016

  • Euro ABS/MBS firm

    Tone remains firm in the European ABS/MBS secondary market albeit on low volumes.

    Inevitably with the US Thanksgiving holiday flows have been very light over the past couple of sessions and look set to stay that way for the rest of the week. Nevertheless, sentiment remains positive across the bulk of sectors and consequently secondary spreads are unmoved. Even Italian .......

    SCIWire 24 November 2016

  • Loss severity spikes

    US CMBS loan losses jumped well beyond the historical weighted average loss severity during 3Q16, Moody's reports. The weighted average loss severity increased to 52% for the loans liquidated during the quarter from 41.3% in the prior quarter, well above the historical weighted average of 42.9% for loans liquidated between 1 January 2000 and 30 September 2016.

    "In the third .......

    News Round-up 22 November 2016

  • Exchangeable CMBS retention tested

    Deutsche Bank and Citi are working together to bring another risk retention-compliant US CMBS to the market, just weeks before risk retention rules officially come into force. Unlike previous compliant CMBS, Kroll Bond Rating Agency notes this will be the first where a portion of the retained interests are expected to be assigned credit ratings if the sponsors exchange their .......

    News Round-up 17 November 2016

  • CMBS tools developed

    DBRS has introduced commercial real estate Market Index and Market Rank tools for the US and Canada. They are offered as part of the DBRS CMBS reporting platform IReports.

    DBRS notes that in times of economic stress, real estate capital availability contracts and may limit investment to more highly populated markets with greater liquidity and comparatively higher transparency. Defaulted loans .......

    News Round-up 17 November 2016

  • Euro ABS/MBS unchanged

    There's been little movement in the European ABS/MBS secondary market this week, so far.

    While sentiment continues to be positive, volumes have remained low this week as most investors appear content to sit on the sidelines for now. What activity there has been has revolved around prime assets and Street trading. Consequently, ABS/MBS secondary spreads across the board have remained .......

    SCIWire 17 November 2016

  • Retail pushes delinquencies up

    US CMBS delinquencies climbed by 7bp to 3.25% last month, as retail late-pays continue to increase, according to Fitch's latest index results for the sector. New delinquencies of US$789m exceeded total resolutions of US$535m, while portfolio run-off of US$7.6bn exceeded Fitch-rated new issuance volume of US$6.6bn across seven transactions, causing a decrease in the overall index denominator.

    The agency notes .......

    News Round-up 15 November 2016

  • Euro secondary softens

    Declines in the bond market have begun to feed into the European securitisation secondary market.

    While sentiment continues to be generally positive across secondary, investor interest appears to have thinned since the end of last week with the spike in rate volatility. At the same time, some softness is appearing in spreads in certain sectors.

    Peripheral and UK RMBS are .......

    SCIWire 15 November 2016

  • Euro secondary stable

    The European securitisation secondary market remains stable despite wider market volatility.

    The continuation of the buying bias and positive tone seen in secondary ABS/MBS in recent weeks ensured all sectors remained insulated from the big moves seen in equities and broader credit yesterday. Consequently, spreads were unchanged on the day and have stayed the same into this morning's open.

    Inevitably .......

    SCIWire 10 November 2016

  • Pay-offs move higher

    The percentage of US CMBS loans that paid off on their balloon date moved modestly higher in October to 68.6%, slightly above the September level of 66.9% and the 12-month moving average of 66.4%, according to Trepp. By loan count as opposed to balance, 77.1% of loans paid off last month.

    On this basis, the pay-off rate was about 10 .......

    News Round-up 9 November 2016

  • EMEA delinquencies inch up

    The 12-month rolling European CMBS loan maturity default rate in S&P's rated universe decreased to 21.1% from 29.8% in October. The delinquency rate for continental European senior loans increased to 68.6% from 67.8% during the month, while the rate for UK loans increased to 34% from 32.7%. Overall, the senior loan delinquency rate rose to 55.4% from 54.5%.

    .......

    News Round-up 9 November 2016

  • US property prices hit landmark

    The Moody's RCA/Commercial Property Price Indices (CPPI) US all-property composite index increased 0.7% in September. Property prices are now up more than 100% since the January 2010 financial crisis trough.

    Apartment prices rose 1% in September and prices in the larger core commercial segment rose 0.6%. Property prices are now up 21% on the November 2007 pre-crisis peak, with apartment .......

    News Round-up 8 November 2016

  • Euro ABS/MBS distracted

    Activity in the European ABS/MBS secondary market continues to be light with participants focusing elsewhere.

    "Secondary is still relatively quiet," says one trader. "The market continues to be distracted by primary, where there are currently a couple of new issues that we're working on, and obviously events in the US are also taking some attention today."

    Nevertheless, the trader continues: .......

    SCIWire 8 November 2016

  • Technology agreement inked

    CR has signed an agreement with Oxane Partners, which will see the two firms work in close cooperation to deliver industry-leading systems and technologies to support CR's expanding asset and loan management functions. As part of the agreement, CR has acquired an equity stake in Oxane.

    The cooperation with Oxane will cover work within a number of areas, including analytics, .......

    Job Swaps 7 November 2016

  • CMBS losses analysed

    Loss percentages for US CMBS loans reached a peak of 14.15% in 2011, but have since moved as low as 4% for loans liquidated in January 2015 or later, notes Trepp. For loans that resolved this year the average loss severity has declined consistently, from 6.41% in 4Q15 to 2.31% in 3Q16.

    While total sector losses have declined along with .......

    News Round-up 4 November 2016

  • Delinquencies rise as maturities bite

    The Trepp US CMBS delinquency rate increased by 20bp in October to 4.98% and is now 19bp lower since the beginning of the year and only 25bp lower than the year-ago level. The rate began to rise in March as loans from the 2006 and 2007 vintages started reaching their maturity dates, causing the reading to move higher in seven .......

    News Round-up 3 November 2016

  • Liquidity facility costs cause burden

    Taurus (Pan-Europe) 2007-1 wishes to cancel its liquidity facility, after costs escalated sharply. The issuer has therefore contacted noteholders to seek permission.

    The liquidity facility provider originally wrote to the issuer to outline the effect that a change to the rating on the notes has had on costs associated with maintaining the liquidity facility. The level of increased costs incurred .......

    News Round-up 3 November 2016

  • Servicer continues Euro expansion

    Situs has acquired Hatfield Philips International from Starwood Property Trust, with its combined assets under management globally now totalling US$160bn. As part of the transaction, Starwood Property Trust will retain a non-controlling minority interest in Situs.

    "The European market is a dynamic and exciting place for debt servicers currently, as banks continue to deleverage their balance sheets amid regulatory pressure .......

    Job Swaps 3 November 2016

  • Deep pockets?

    Alternative investors could fill CMBS refinancing gap

    As a wave of US CMBS loans originated from 2004 to 2008 is set to mature over the next 18 months, there are concerns about the ability of these loans to refinance. However, some believe that the sector will see smaller losses than previously had been expected as alternative investment sources inject the required capital.

    US$566bn of non-agency conduit CMBS .......

    News Analysis 3 November 2016
×