CMBS

  • 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

  • Gap exposure weighed up

    Morningstar Credit Ratings has identified 231 CMBS loans totalling US$13.89bn with exposure to struggling US retailer Gap. With more than half the loans backed by collateral where leases are set to expire in the next two years, closing stores could impact CMBS deals sooner rather than later.

    Gap - which also owns the Old Navy, Banana Republic, Athleta and Intermix brands - reported its comparable-store sales .......

    News 10 June 2016

  • REMIC guidance provides clarity

    REMICs have long operated with only limited tax guidance, but two significant pieces of guidance have come out this month. The first is a Second Circuit Court of Appeals ruling concerning certain RMBS and the second is an IRS private letter ruling.

    The application of the REMIC rules to mortgages that have a high probability of default or credit-based restructuring .......

    News 9 June 2016

  • Euro secondary stable

    The European securitisation secondary market continues to show stability.

    Secondary spreads across the board are flat to slightly tighter this week as the vast majority of securitisation sectors remain insulated from headline volatility surrounding Brexit and US rates. CLOs continue to lead the way in terms of demand across the capital structure, while ABS/MBS is seeing more two-way flows.

    However, overall .......

    SCIWire 9 June 2016

  • Euro secondary liquidity 'healthy'

    Around 80% of European ABS BWICs have successfully traded over the last year, a sign that liquidity in the market remains healthy, according to TwentyFour Asset Management. The asset manager notes that €9.9bn worth of bonds has hit the BWIC market since June 2015, with an additional €5bn when European CLO bonds are included.

    TwentyFour says that misconceptions about the liquidity of .......

    News 8 June 2016

  • Vacancy decline supporting SFR deals

    Nationwide rental vacancy in the US is presently 7%, down from 11% in 2009, according to the US Census Bureau. Moody's believes that this drop in vacancy bodes well for the single-family rental securitisations it rates, especially regarding anticipated future enhanced rental revenue, as Generation Y renters are a large component of SFR renters. It also portends higher liquidation proceeds .......

    News Round-up 8 June 2016

  • Brazilian trustees feeling squeeze

    Smaller trustees will have to exit the Brazilian securitisation market or merge with larger competitors, says Fitch. This is because of markedly decreased issuance, high operating costs and low profitability.

    Smaller, lower-capitalised companies which rely on non-recurring structuring fees to cover ongoing operating expenses are expected to feel the most pressure. The rating agency notes that companies which only act .......

    News Round-up 8 June 2016

  • Liquidation volume climbs

    US CMBS liquidation volume climbed to US$854.5m in May, up from US$436m in March and US$501.5m in April, according to Trepp. Last month 72 loans that averaged US$11.9m in balance were paid off.

    Including two B-notes totalling US$29.1m, eight loans comprising US$87.1m paid off with over 100% in losses. The top five loans disposed of with the highest losses last .......

    News Round-up 8 June 2016

  • A/B loan transfers eyed

    Fitch reports an up-tick in US CMBS loss severities as more modified A/B loans transfer back to special servicing. The agency adds that many A/B loan modifications have still not stabilised and are unlikely to be able to refinance in the current market.

    Loss severities are likely to continue increasing as modified A/B loans transfer back to special servicing, according .......

    News Round-up 8 June 2016

  • REIT pro snapped up

    Hunton & Williams has hired Robert Smith as a partner to its real estate capital markets practice. His practice focuses on REITs, with a focus on the mortgage REIT space, including publicly traded mortgage REITs on securities offerings and corporate and securities law reporting matters.

    The law firm adds that Smith's experience will include significant contributions to securitisation. Prior to .......

    Job Swaps 7 June 2016

  • CMBS loss severities recover

    US CMBS loss severities dropped in 1Q16 to 49.3% across 143 loans after posting high weighted averages to close out last year, according to Moody's. The figures represent a decrease from the 58.2% weighted average loss severity posted across 240 liquidated loans in 4Q16, but are still higher than the 42.8% average since January 2000.

    "Loan liquidations from the troubled 2006 to .......

    News Round-up 6 June 2016

  • CMBS delinquencies inch up again

    The US CMBS delinquency rate inched up for the third straight month at the end of May, says Trepp. The rate for CRE loans in CMBS is now at 4.35%, an increase of 12bp from April.

    The rate has crept up after two large decreases to start the year in January and February. However, on a relative basis, the rate is .......

    News Round-up 3 June 2016

  • Goldman CRE head steps down

    Ted Borter has taken over as sole head of Goldman Sachs' US CRE finance group after Jonathan Strain recently left his position as co-head. Strain departed from the bank to reportedly launch a CMBS B-piece fund. Prior to Goldman, he was head of CMBS capital markets at JPMorgan.

    .......

    Job Swaps 2 June 2016

  • Euro secondary stays positive

    The European securitisation secondary market is retaining its positive tone and momentum.

    Despite the UK and US public holidays and month-end, activity has improved on the previous week throughout this. The last few days have seen trading across the board and spreads in the vast majority of sectors continue to grind tighter.

    In ABS/MBS prime assets were the main focus yesterday .......

    SCIWire 2 June 2016

  • US CMBS secondary demand strong

    The slow pace of primary market issuance is driving US non-agency CMBS trends.

    "We see little bursts of activity and then everything slows back down. Over the last one or two weeks we have really seen the quiet primary market driving the secondary market," says one trader.

    He adds: "Curiously, there was a decent amount of BWIC supply last week. .......

    SCIWire 1 June 2016

  • Building boom threatens hotel CMBS

    Burgeoning hotel room supply could increase risk for the US$3.68bn of fixed-rate loans backed by Manhattan hotels and securitised in CMBS monitored by Morningstar Credit Ratings, says the agency. Delinquent and specially serviced loans account for just 2.8% of the Manhattan loans, but a further 14 loans - with a combined balance of US$730.9m - have DSCRs below 1.2x.

    While .......

    News 1 June 2016

  • CMBS metrics diverging

    A number of metrics appear to be diverging within recent US CMBS 2.0 deals rated by Fitch. A recent comparative analysis of 2014 and 2015 deals undertaken by the agency reveals that originator leverage metrics improved, while the agency's own leverage metrics deteriorated.

    In addition, cashflow haircuts and debt yield also worsened within Fitch's metric, an indicator of aggressive originator underwriting. "The rise .......

    News Round-up 1 June 2016

  • Gateway mod pulled

    The February modification of the US$94.3m Gateway Salt Lake loan, securitised in JPMCC 2010-C1, has been rescinded. Trepp suggests that while the pulling of the modification may not be a first for the CMBS market, it is certainly the largest.

    The 623,205 square-foot mall backing the loan was sold earlier this year to a group that included Vestar and Oaktree .......

    News 1 June 2016

  • Real estate platform strengthened

    C-III Capital Partners is set to acquire Resource America, following a comprehensive review of strategic and financial alternatives that the latter company announced in January. Under the terms of the agreement, Resource America stockholders will receive US$9.78 per share in cash, or a total of approximately US$207m. The price per share represents a premium of over 128% from Resource America's .......

    Job Swaps 31 May 2016
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