CMBS

  • 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

  • CMBS structured to meet risk rules

    Morgan Stanley has once again teamed up with Wells Fargo and Bank of America to market a US CMBS structured to satisfy risk retention rules on both sides of the Atlantic. MSCI 2016-BNK2 is sized at a little over US$700m (see SCI pipeline) and is understood to be the third private bond designed to meet risk retention requirements .......

    News Round-up 2 November 2016

  • CMBS partner poached

    Reed Smith has appointed Jodi Schwimmer as a partner in its global financial industry group in New York. She was most recently a partner at Dechert and brings with her two associates integrated into her practice - Samantha Chertoff and Carla Moore.

    Schwimmer's practice focuses on CMBS, real estate finance and structured finance, representing issuers, underwriters, loan sellers and investors .......

    Job Swaps 2 November 2016

  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy.

    After a primarily quiet week last week, Friday saw a slight pick-up in volumes, which followed through into Monday in advance of month-end. However, activity across the board remains patchy and is further hampered by European public holidays this week and broader market volatility driven by negative headlines in .......

    SCIWire 2 November 2016

  • Dispositions tick up

    Trepp's October loss analysis shows a continued up-tick in US CMBS loan dispositions. The average loss severity for loans with losses greater than 2% is 63.12% for October, an increase of 3.79 percentage points from September's tally. Average loan size also climbed to its highest level since January at US$15.5m.

    Several large office loans were liquidated last month, backed by .......

    News Round-up 1 November 2016

  • Default rate dips

    Fitch's cumulative loan default rate for fixed-rate US CMBS fell slightly to 12.7% as of 3Q16, slightly lower than the 12.9% rate at end-2Q16 and 13.2% one year ago. The decline is due to steady issuance levels, combined with overall low term default rates, according to the agency.

    In 3Q16, 39 loans totalling US$387m newly defaulted during their loan term, .......

    News Round-up 31 October 2016

  • Higher margins for Euro CMBS

    European CMBS will remain a non-prime financing tool, according to Moody's. The agency believes that to guarantee excess spread in new deals, loans with higher margins will have to be originated, resulting from riskier features.

    Such features could include weaker property quality, non-standard property type or non-core jurisdictions. Moody's suggests that direct lending and syndication are currently more attractive than CMBS .......

    News Round-up 31 October 2016

  • CMBS market craving liquidity

    Investors believe CMBS offers the best relative value compared to other asset classes, according to a recent Deutsche Bank survey. It also finds that CMBS investors' main concern is lack of secondary market liquidity, which could be having a knock-on effect on investment, particularly in long-duration CMBS paper.

    In terms of whether investors would look to increase or decrease their .......

    News 28 October 2016

  • Borrower advocate role recognised

    Morningstar Credit Ratings has awarded a MOR CV2 ranking to 1st Service Solutions for its extensive advocacy for CMBS borrowers. The firm, which pioneered the industry for borrower advocates in CMBS loan restructurings and assumptions, is the first to earn such a distinction.

    Founder and ceo of 1st Service Solutions Ann Hambly responded to the news by stating that "we .......

    News Round-up 27 October 2016

  • SFR refi incentive boosted

    Total home equity has increased by 27% since issuance across the 71,955 properties underlying the 18 single-family rental securitisations issued in 2013-2015, according to Deutsche Bank figures. The trend is expected to boost SFR issuers' refinance incentive.

    Based on property-level data released by the SFR issuers, Deutsche Bank RMBS analysts estimate that the aggregate BPO value of these properties increased .......

    News 27 October 2016

  • CMBS A/B mod considered

    The US$47.5m Herndon Square Office Park loan securitised in CGCMT 2007-C6 appears set for a modification with an A/B split, based on October special servicer comments. An A/B modification has been offered by the borrower and is currently being negotiated.

    Trepp notes that the value of the collateral behind the loan was sharply reduced last month. The loan was sent .......

    News Round-up 27 October 2016

  • Euro ABS/MBS quiet

    This week has continued to be slow across the European ABS/MBS secondary market.

    "There's nothing going on," says one trader. "UK half-term means a lot of people are out this week and anyone who is here will be looking at primary where there are few interesting deals marketing."

    Secondary supply has been more limited than in recent weeks, the trader .......

    SCIWire 27 October 2016

  • Servicer performance scrutinised

    A new Morningstar Credit Ratings study of aggregated consent-processing times of four large-volume US CMBS master servicers - Wells Fargo Commercial Mortgage Servicing, Midland Loan Services, KeyBank and Berkadia Commercial Mortgage - indicates that amid substantial request volume, their average completion times during the past few years have been fairly constant and even quicker in some periods. However, CMBS servicers .......

    News 26 October 2016

  • Aussie CMBS has RMBS elements

    Think Tank Group is in the market with a CMBS deal which includes features more typically found in RMBS. Think Tank Series 2016-1 Trust is a securitisation of loans to commercial borrowers secured by mortgages over commercial or residential properties originated by Think Tank Group.

    S&P has provisionally rated the A$130m A1 notes and A$17m A2s at triple-A. The A$1.6m .......

    News Round-up 26 October 2016

  • CMBS conduit loan credit quality up

    The credit quality of conduit loans backing US CMBS deals improved in 3Q16, notes Moody's. Conduit loan leverage dipped around 1%, while the share of collateral pools made up of loans credit assessed as investment grade doubled to 13%.

    "Leverage for the conduit portion of loan pools dipped about 1% in the third quarter, while the share of investment-grade quality .......

    News Round-up 25 October 2016

  • Replacement chairman named

    RAIT Financial Trust has separated its offices of chairman and ceo, which were previously both held by Scott Schaeffer. The REIT's board has elected Michael Malter to succeed Schaeffer as chairman.

    Malter joined the board in November 2015 and currently serves on the risk management committee and the compensation committee. He also chairs the special committee that was responsible for .......

    Job Swaps 25 October 2016

  • Euro secondary starts slow

    It was a slow start to the week in the European securitisation secondary market, but a large CDO liquidation should generate some interest today.

    Yesterday was quiet across the board thanks to an element of supply fatigue as the well-established pattern of primary focus linked to flurries of BWICs continued into the end of last week and was met with .......

    SCIWire 25 October 2016

  • Large loss recorded

    The One HSBC Center property - securitised in GSMS 2005-GC4 - has been sold for US$14.4m, equating to a loss of 109% on the US$73.3m loan balance, including fees, expenses and advances. The loan has been in special servicing since November 2013, after transferring for imminent default (see SCI's CMBS loan events database).

    Fitch notes that the property's .......

    News Round-up 24 October 2016

  • CMBS maturity outcomes anticipated

    US$119bn in outstanding performing commercial mortgage loans backing CMBS will mature by the end of 2018, says S&P, with around 77% of this concentrated in 2017. The rating agency has assessed the outcomes of the US$284bn by original balance worth of loans that have already resolved in 2014, 2015 and 2016 so far to provide a benchmark for potential performance .......

    News Round-up 21 October 2016

  • Credit metrics improving

    S&P reports that credit metrics for conduit/fusion CMBS pools improved in several areas during Q3, compared with the first half of the year. However, the agency notes a slight upward trend in loss severities since the beginning of 2016, which is expected to continue as the large amount of CMBS maturities due in 2017 are worked through.

    In Q3, the .......

    News Round-up 20 October 2016

  • New standard to drive transparency?

    A new Mortgage Industry Standards Maintenance Organization (MISMO) XML commercial rent roll standard is due to be released by the end of the month. As the CMBS industry grapples with the Dodd-Frank Act and transparency issues, some believe that including such files in investor disclosures pre- and post-securitisation is the most important remaining step issuers could take.

    Rent roll information .......

    News 20 October 2016
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