CMBS

  • CMBS liquidations drop

    US CMBS liquidation volume dropped to US$611.4m in September, while overall loss severity rose by 1.91 percentage points to 50.76%, according to Trepp. During the first three quarters of 2016, 619 conduit loans totalling US$7.6bn were disposed of at an average monthly loss severity of 50.29%.

    Average loan size for September liquidations declined to US$9.4m, falling below the nine-month average .......

    News Round-up 3 October 2016

  • Real estate team poached

    Sidley Austin has added a trio of partners to its real estate practice in New York. Steven Koppel, Aviva Yakren and Adam Verstandig have both national and global experience advising clients in all aspects of real estate private equity and real estate finance, including capital markets lending, community development finance, low-income housing and new market tax credit products, renewable energy .......

    Job Swaps 30 September 2016

  • Indian MBS PTCs surge

    The surge in securitisation activity in India last year has continued into 1Q16, boosted by renewed interest in MBS PTCs, according to a report from Crisil. The agency adds that the general securitisation growth is due to clarity on distribution tax and because of banks shifting to quarterly, rather than annual, assessment of priority sector lending targets.

    Of total issuance .......

    News Round-up 29 September 2016

  • Euro ABS/MBS keeps steady

    It continues to be a steady week in the European ABS/MBS secondary market.

    The run in to month end continues to be a steady if unspectacular one in terms of volumes on- and off-BWIC. Nevertheless, ever-improving macro sentiment this week and a growing new issue pipeline continue to ensure secondary spreads remain firm across the board.

    There are currently three .......

    SCIWire 29 September 2016

  • Internalisation agreement inked

    RAIT Financial Trust has entered into a definitive agreement to sell its subsidiary Independence Realty Advisors - the external advisor of Independence Realty Trust (IRT) - and certain assets of Jupiter Communities to IRT for US$43m in a transaction to permit IRT to internalise its advisor and property management functions. In addition, RAIT has agreed to sell back to IRT .......

    Job Swaps 27 September 2016

  • Euro ABS/MBS starts slowly

    The European ABS/MBS secondary market has started the week slowly.

    Softer broader markets meant a dip in activity across ABS/MBS sectors yesterday. However, they remain insulated from the weaker sentiment elsewhere and secondary spreads generally held firm.

    In contrast, the previous few sessions saw robust activity boosted by a positive response to comments from the Fed. Decent two-way flows, with .......

    SCIWire 27 September 2016

  • IPO plans 'positive' for CMBS

    Officefirst Immobilien's plans for an IPO on the Frankfurt Stock Exchange before year-end are credit positive for the €468m Taurus 2015-2 DEU CMBS, says Moody's. Officefirst intends to use the proceeds primarily to repay existing debt, but also to convert into a REIT next year.

    The IPO and deleveraging plans would lower refinancing risk for the loan securing Taurus 2015-2 .......

    News Round-up 26 September 2016

  • Monthly CMBS payoffs down

    While payoff rates for CMBS are up for August to 71.3%, from 62.7% in July, they remain below 72% for the fourth month in a row, according to Morningstar Credit Ratings. In a recent report the rating agency finds that while there was a monthly increase, the year-to-date payoff rate for CMBS declined from 76% to 75.4% last month.

    Morningstar expects .......

    News Round-up 26 September 2016

  • Quarterly CMBS prepayments up

    CMBS prepayments have seen an uptick in 3Q16 due to sustained low interest rates and expectations of a rate rise, according to Fitch. The rating agency suggests that this trend is likely to continue into 4Q16.

    Fitch finds that nearly US$18.2bn of loans securitised in legacy conduit transactions between 2006 and 2007 were paid off in 3Q16. Of these, 73% were loan .......

    News Round-up 26 September 2016

  • CMBS loan collateral value drops

    The value of the collateral behind the US$57.5m PNC Corporate Plaza loan has reduced sharply, notes Trepp. The servicer had previously been posting the securitisation value of US$78.4m, but last month that was reduced to US$37.5m.

    The property is a 29-storey office building in Louisville, Kentucky, built in 1972 and renovated in 2003. It is collateralised in WBCMT 2007-C30.

    PNC .......

    News Round-up 23 September 2016

  • Bank shuffles SF pros

    Credit Suisse has made a series of changes to its asset finance team, with a number of structured finance pros changing roles. Among the changes, Jay Kim has been promoted to global head of structured products.

    Kim's promotion follows the appointment of Brian Chan, former co-head of credit and securitised products, to the firm's board with the new role of .......

    Job Swaps 23 September 2016

  • Commercial mortgage defaults down

    US commercial mortgage annual loan defaults have continued to decline from their 2010 peak, with Kroll Bond Rating Agency noting defaults declined 26% in 1H16, falling to 199. Over the same period last year, the number was 268.

    Kroll's study includes 92,415 commercial real estate loans primarily originated for securitisation between 1995 and June 2015. Of these, through June 2016, .......

    News Round-up 22 September 2016

  • Dock Street brought in for CRE CDO

    Dock Street Capital Management has been named as replacement collateral administrator to JPMorgan-CIBC 2006-RR1. Under the terms of the appointment, Dock Street will now assume all responsibilities, duties and obligations of the collateral manager under the applicable terms of the collateral administration agreement.

    Moody's says there will be no rating impact, in part due to Dock Street's experience and capacity to .......

    Job Swaps 21 September 2016

  • CMBS 'unaffected' by floods

    Recent floods in Louisiana could stress the state's cash balance but CMBS deals there are unlikely to be affected in the near term - despite elevated risk (SCI 8 September) - according to Fitch. The agency comments that despite damage totalling US$8.7bn throughout the state, properties linked to CMBS rated by Fitch are largely unscathed.

    The rating agency states that throughout the .......

    News Round-up 21 September 2016

  • Fresh Sears closures announced

    Seritage Growth Properties, the Sears REIT spin-off, has exercised its right to terminate the leases at 17 unprofitable stores, with all 17 understood to be Kmart stores. The JPMCC 2015-SGP CMBS, which is secured in part by the borrower's interests in 235 wholly-owned properties, is affected.

    Seritage's business plan is to recapture, redevelop and re-lease space at each property to .......

    News Round-up 21 September 2016

  • Macy's impact considered

    While Macy's is yet to release a list of which stores will be closing (SCI 18 August), closures are expected to begin in early 2017. Fitch reports that there are 86 properties backing 104 loans across 79 CMBS where Macy's is a top-five tenant.

    Most of these properties are located in regional malls, with a smaller number of retail centres .......

    News Round-up 20 September 2016

  • Bankruptcy poses CMBS concerns

    Morningstar Credit Ratings finds elevated risk in 17 commercial mortgages with exposure to Golfsmith International Holdings, amounting to an allocated property balance of US$365.5bn. Golfsmith filed for bankruptcy on 14 September, resulting in the closure of 20 stores - two of which are properties backing loans in CMBS, totalling US$42.6m in allocated property balance.

    Golfsmith is also the anchor tenant .......

    News Round-up 20 September 2016

  • Canadian CMBS outlook 'positive'

    DBRS maintains a positive outlook for Canadian CMBS as the market continues a period of elevated refinance activity brought on by the maturity of the 10-year CMBS bonds from the 2005-2007 vintages. Despite the positive outlook, the rating agency notes there are several potential risks, such as the weaker economic environment in Canada and the contraction in the jobs market .......

    News Round-up 16 September 2016

  • Agency investing

    Growing agency CMBS market attracts investors

    Combined Fannie Mae and Freddie Mac CMBS issuance is expected to come close to US$100bn for the year, with agency CMBS comfortably outstripping non-agency supply. While the agency CMBS market has historically been small, it is growing rapidly and there are attractive opportunities for investors to take advantage of.

    "The agency CMBS market has grown a lot over the last .......

    News Analysis 16 September 2016

  • CMBS 1.0 late-pays rising

    Fitch reports that US CMBS delinquencies fell last month for the first time since March, even though late-pays on older vintages continue to rise. Delinquencies declined by 5bp in August to 3.15% from 3.20% a month earlier.

    Portfolio run-off of US$8.1bn outweighed new issuance volume of US$4bn from six transactions in July, causing a decrease in the overall index denominator. .......

    News Round-up 12 September 2016

  • CRE investment firm founded

    An independent commercial real estate investment management firm has launched, funded by new investors and a management team that has moved from FirstKey Lending. Dubbed Allegiant, it has also inked advisory and consulting agreements with FirstKey over its existing US$215m loan portfolio.

    Additionally, Allegiant will deploy up to US$500m for investment in and management of commercial real estate debt opportunities, .......

    Job Swaps 12 September 2016
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