CMBS

  • Agency recruits trio

    Morningstar Credit Ratings has made a trio of new hires in New York, including Lea Overby as md, leading structured finance research. This position is a newly created role for the agency, which will see Overby head up structured finance initiatives and support its analytical team in MBS, ABS and CLOs.

    Prior to moving, her most recent role was as executive .......

    Job Swaps 24 June 2016

  • Hope note provisions 'provide fix'

    Provisions that exclude hope notes in determining who controls a CMBS transaction correct a potential misalignment of interest, says Moody's. These provisions are appearing in a small but growing share of new CMBS transactions.

    "The new provisions we are seeing in servicing agreements place control of a CMBS transaction in the hands of certificateholders with bond positions that are supported .......

    News Round-up 24 June 2016

  • CRE 'storm' predicted

    US commercial real estate (CRE) prices could drop as much as 5% over the next 12 months, according to a new PIMCO report. The price decline could come from a confluence of factors, including volatility in public markets, tightened regulations, maturing loans and uncertain foreign capital flows - a number of which tie into the performance of CMBS.

    The report notes .......

    News Round-up 23 June 2016

  • Euro secondary settles down

    After a flurry of activity over the past two sessions the European securitisation secondary market has settled down today to await news from the UK EU referendum.

    Following a quiet Monday volumes picked over the next two days sparked by the increase in BWIC activity noted on Tuesday and continuing improvement in wider markets. Flows were relatively healthy yesterday too .......

    SCIWire 23 June 2016

  • Business development head hired

    Solutus has recruited Gareck Wilson from Brookland Partners in a senior role to develop its UK business as part of the firm's expansion plans. As head of business development, he brings diverse high-end experience gained across the real estate finance sector in the UK, Europe and internationally, including debt restructuring, corporate advisory, lending, securitisation and capital markets.

    In his previous .......

    Job Swaps 22 June 2016

  • Cracks emerging in US housing

    A robust housing market has not prevented a number of 'minor' cracks from opening up within US housing, reports Fitch. Rising interest rates, demographics and employment growth point to a positive 2H16 and start to 2017, but challenges for the housing recovery include ongoing labour shortages and the potential for it to become more widespread. 

    Fitch believes that current trends have created a .......

    News Round-up 21 June 2016

  • Multifamily supply ups risk

    While multifamily CMBS ratings should be unaffected, Fitch says that there is rising risk of class A overbuilding in some submarkets. The concentration of high-end construction in 12 metro areas is intensifying and new supply in the student housing sector continues to break records.

    The rating agency notes that the majority of new multifamily construction is concentrated in just 12 .......

    News Round-up 21 June 2016

  • Euro secondary solid

    The European securitisation secondary market remains solid ahead of Thursday's UK EU referendum.

    Thanks to negligible activity due to the Barcelona conference all sectors were insulated against wider market volatility driven by Brexit fears last week. Improving broader sentiment on Friday and yesterday has left ABS/MBS secondary spreads largely unchanged on the previous week albeit on the back of very .......

    SCIWire 21 June 2016

  • Director duo appointed

    New York Mortgage Trust has appointed Kevin Donlon and Michael Clement as directors, with the latter also serving as a member of the board's audit, compensation and nominating and corporate governance committees. Donlon was named president of the REIT last month, following its acquisition of RiverBanc, which he founded in 2010.

    Donlon was previously an md with BlackRock, following its .......

    Job Swaps 17 June 2016

  • Origination probe underway

    CBL & Associates Properties has disclosed that the US SEC is conducting an investigation into four specific non-recourse secured loans that the firm originated in 2011 and 2012. Specifically, the purpose of the review is to ensure that the information provided to lenders regarding lease status reports, revenues and expected revenues did not materially vary from the firm's financial statements.

    Job Swaps 16 June 2016

  • Veteran London trader tapped

    Imperial Capital Group has hired Jonathan Noonan as svp and a senior trader focusing on CMBS, pubs and esoteric ABS. He will join the structured products trading group in the firm's London office. Noonan joins from Bank of America Merrill Lynch, where he most recently was a director and ABS trader.

    .......

    Job Swaps 15 June 2016

  • Barbelling risk proliferating

    Fitch warns that credit barbelling is becoming more common in US CMBS, which may place transactions at greater risk of losses over time. Such wide dispersion of credit risk within transactions is becoming more obvious as deal sizes shrink.

    "Barbelling began to surface within Fitch's loan metrics last year and it is showing up more frequently in 2016," says Fitch .......

    News Round-up 14 June 2016

  • Euro CMBS defaults drop

    The 12-month rolling loan maturity default rate for European CMBS rated by S&P fell from 8.1% to 7% at the end of May. The senior loan delinquency rate increased from 43.7% to 45%.

    The senior loan delinquency rate rise was driven by increases in both continental and UK loans. The rise for continental loans was from 56.9% to 58.7% and .......

    News Round-up 14 June 2016

  • Attack force

    Contrasting legal approaches add to uncertainty

    The High Court in London decided five cases brought by class X noteholders in 2006 and 2007 vintage European CMBS in April (SCI 13 May). The overall outcome was the same for both judgments - the claimants failed - but the contrasting approaches taken by the judges leave structured finance agreements open to attack using general legal principles, given the .......

    News Analysis 14 June 2016

  • CRE lending teams bolstered

    Greystone has boosted its origination team with the additions of Don Farmer and Lou Tiberio. They will be located in Dallas and Philadelphia respectively, and have joined as part of the company's push to boost its regional mortgage lending production.

    Prior to joining Greystone, Farmer was most recently md of structured finance at Transwestern. He also served roles as south central .......

    Job Swaps 13 June 2016

  • Lender taps CRE arranger

    Walker & Dunlop has boosted its capital markets team with the hire of Stuart Wernick as svp and md. He will be responsible for building the firm's regional production platform in its Dallas office by arranging CRE loans to banks, life insurance companies, CMBS conduits and others.

    Prior to joining, Wernick served as senior md at Berkadia Commercial Mortgage, where he led .......

    Job Swaps 13 June 2016

  • Special servicing head appointed

    Torchlight Investors has reshuffled its special servicing group by appointing Abbey Kosakowski to lead its operations. Kosakowski is already svp for the firm and has previously held senior roles at JPMorgan and Lehman Brothers.

    She takes over the role after Torchlight md and investment committee member, Steven Schwartz, exited it. Schwartz will continue to lead Torchlight's acquisitions group and will .......

    Job Swaps 13 June 2016

  • Credit enhancement model offered

    S&P has launched its Commercial Mortgage Evaluator (CME) tool, a proprietary model that can be used to aid credit risk analysis associated with US and Canadian CMBS collateral. The CME leverages S&P's CMBS rating methodology and utilises individual loan-level credit metrics to derive loan-level credit enhancement levels. These in turn are aggregated to determine pool-level credit enhancement levels, which reflect .......

    News Round-up 13 June 2016

  • Delinquencies inch up

    US CMBS delinquencies increased by 6bp in May to 2.98% from 2.92% a month earlier, according to Fitch. The dollar balance of late-pays increased by US$173m to US$11.22bn, from US$11.05bn in April, driven by the addition of three loans sized at over US$50m into the index.

    In total, new delinquencies of US$756m exceeded resolutions of US$543m. Fitch-rated new issuance volume .......

    News Round-up 13 June 2016

  • CMBS pay-offs dip

    The percentage of US CMBS loans that paid off on their balloon date slid modestly in May to 68%, almost five points lower than the April level, according to Trepp. The May tally is slightly below the 12-month moving average of 68.5%.

    By loan count as opposed to balance, 68.3 % of loans paid off last month. On this basis, .......

    News Round-up 13 June 2016

  • Credit metrics eyed

    S&P reports a significant change in conduit/fusion CMBS credit metrics for 2016 transactions compared to the 2013-2014 vintages. The agency notes that collateral pools have continued to deteriorate, with higher loan-to-value (LTV) ratios, lower debt yields, greater hotel concentrations and more interest-only (IO) loans.

    The weighted average S&P LTV has increased to 92.9% from 85.5% in 2013 and the weighted .......

    News Round-up 13 June 2016
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