CMBS

  • Euro defaults, delinquencies drop

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe decreased to 8.1% from 10.3% at end-April. Overall, the senior loan delinquency rate decreased to 43.7% from 45.3% last month.

    The delinquency rate for continental European senior loans decreased to 56.9% from 58.4%. The rate for UK loans decreased to 19.0% from 20.3%.

    .......

    News Round-up 13 May 2016

  • Court rejects class X claims

    A second judgment in less than a month has gone against CMBS class X noteholders. Last month, a judge ruled against the class X noteholders in Windermere VII, dismissing the plaintiffs' arguments (SCI 11 April), while the latest case concerned four transactions in the Titan series, including Titan Europe 2006-1.

    The Titan case focused in particular on the interpretation of .......

    News 13 May 2016

  • Excess rent impact analysed

    Single-family rental (SFR) investor loans where the property income exceeds 1.2 times the debt service have generally experienced a better-than-average default rate, according to a new Morningstar Credit Ratings study. The agency expects these loans to be a driver of SFR market growth.

    A new type of investor property loan has emerged from SFR originators - such as B2R Finance, .......

    News Round-up 12 May 2016

  • Euro secondary still sluggish

    Activity continues to be sluggish in the European securitisation secondary market despite the tone remaining firm across the board.

    In ABS/MBS, Tuesday saw a flurry of BWICs that traded well, but yesterday auction activity slowed once more. Flows continue to be generally light even though sentiment is positive with prime RMBS and autos, along with select peripheral names attracting the .......

    SCIWire 12 May 2016

  • Canada CMBS under fire

    The Fort McMurrary wildfire is adding stress to six Canadian CMBS, in particular, according to Fitch. This comes after the evacuation of the city's residents last week as the fire continues to spread.

    The six deals that Fitch rates with exposure to properties located in Fort McMurray are: CMLS 2014-1, IMSCI 2012-2, IMSC 2013-3, IMSCI 2013-4, IMSCI 2014-5 and REAL-T 2014-1.

    News Round-up 11 May 2016

  • Oil boom remits 'muted'

    April remittance reports showed muted activity for US CMBS 2.0 loans secured by properties located in oil boom regions compared to prior months, with only three such loans transferring to special servicing, according to Morgan Stanley CMBS strategists. Last month, 13 2.0 loans totalling US$137.7m became newly delinquent and 177 loans totalling US$2.6bn were watchlisted.

    Overall, six loans totalling US$37m .......

    News 11 May 2016

  • Executive director sought

    The CRE Finance Council has selected Ferguson Partners to manage the search for a new executive director. The position - along with that of deputy executive director - is newly created as part of the association's organisational restructuring

    Mike Flood has already been named as CREFC's new deputy executive director. He was formerly with CREFC and most recently was with .......

    Job Swaps 11 May 2016

  • CMBS overvaluation case dropped

    CMBS SPV White Tower 2006-3 has dropped a case against Colliers concerning losses it made on five London-based commercial properties. The real estate agency was accused of overvaluing the properties in a £1.8bn UK office portfolio, which allegedly led to a £39m loss.

    White Tower decided to discontinue its attempts to sue Colliers following the case being at trial in the .......

    News Round-up 10 May 2016

  • Insurers' structured holdings slip

    Life insurers held more than US$380bn of structured products securities at the end of 2015, which Wells Fargo analysts note represents a decline of approximately US$20bn from year-end 2014. Insurers' balance sheets actually increased 2%, so the decreased allocation to structured products is even greater on a relative basis.

    As a percentage of total cash and fixed income, structured products' .......

    News 10 May 2016

  • Specially serviced loans continue to decline

    The overall share of specially serviced US CMBS conduit loans decreased by 73bp to 6.04% in 1Q16, from 6.77% in 4Q15, according to Moody's latest surveillance review of the sector. The share of specially serviced loans remains 668bp below the April 2011 peak of 12.72%.

    In the first quarter of this year, 14 loans totalling US$1.15bn were modified, up from .......

    News Round-up 10 May 2016

  • Refi wave loans 'well positioned'

    At its peak, the upcoming US CMBS refinancing wave will see loan maturities exceed US$12bn per month, according to Moody's. Nevertheless, barring significant market disruption, the agency suggests that most of these loans are well positioned to pay off.

    "The US CMBS refinancing wave is now within a few quarters of cresting, when for several months loan maturities will surpass .......

    News Round-up 10 May 2016

  • Euro ABS/MBS starts slow

    It was another slow start to the week for the European ABS/MBS secondary market.

    Yesterday's session followed on from those of the previous week with another day of very light flows. Lack of significant primary activity continues to hold back any potential for secondary momentum, though spreads continue to be stable.

    In the absence of any stronger focus Brexit continues .......

    SCIWire 10 May 2016

  • Production team bolstered

    Greystone has recruited two new executives to its CMBS lending team. Harris Heller, an md based in Philadelphia, and Nicholas Diamond, a director based in New York, both report to the firm's CMBS production head Robert Russell.

    Heller joins Greystone from RAIT Financial Trust, where he most recently served as an md. He has specialised in fixed and floating rate .......

    Job Swaps 10 May 2016

  • US CMBS values change course

    Property values for specially serviced US CMBS fell in 2015, says Fitch. Appraised values for the 495 loans in the Fitch-rated universe fell 0.5%, with retail leading the decline.

    The reduction in appraised values compares to a 1.5% increase in the year before. Retail valuations accounted for 10 of the 15 largest declines.

    Just over half of the loans - .......

    News Round-up 9 May 2016

  • Macro issues affecting Brazilian MBS

    Macroeconomic pressures on Brazil will continue to stress CMBS, says Fitch. Credit-linked CMBS will fall faster in 2016 than in 2015 and other CMBS sectors will also suffer, while RMBS deals should remain stable amid the declining residential market as most borrowers have benefitted from a rise in inflation and trusts have significant seasoning.

    Fitch's Brazilian structured finance ratings have seen .......

    News Round-up 4 May 2016

  • CMBS delinquencies up again

    The US CMBS delinquency rate inched higher again in April, according to Trepp. It was the second consecutive month that the rate crept higher, following large decreases in January and February.

    The delinquency rate for US CRE loans in CMBS is now 4.23%, up 1bp from March. The rate is 134bp lower than a year previously and 94bp lower than .......

    News Round-up 3 May 2016

  • Hudson loss forecast increases

    Rising store vacancies at the Hudson Valley Mall in Kingston, New York, has prompted Morningstar Credit Ratings to increase its loss forecast on the loan backed by the shopping centre. Sagging occupancy has now left the US$49.4m loan with expected losses of US$32.5m, a substantial rise from the previous US$24.7m projection.

    This could have direct implications on CFCRE 2011-C1. The loan comprises .......

    News Round-up 28 April 2016

  • US CMBS stays supply-driven

    Activity and pricing patterns in the US non-agency CMBS secondary market continue to be driven by expectations over supply.

    "Secondary is still fairly quiet as people are holding on to paper because of expectations of diminishing future supply," says one trader. "So spreads are continuing to tighten and we're also seeing a lot of people buying CMBX risk for the .......

    SCIWire 27 April 2016

  • Euro CMBS to remain attractive

    European CMBS investor demand will remain high over the next few years, says Moody's, as CRE returns are more attractive in the low interest rate environment than alternative investments. Investors will have to balance the defensive attributes of low yielding prime properties with looking further afield to find additional yield pick-up.

    "CRE fundamentals are stable, but returns will not be uniform. .......

    News Round-up 27 April 2016

  • Euro secondary picks up

    The European securitisation secondary market saw an increase in activity yesterday to go with the improving tone of recent sessions.

    "After being quiet for the past few days flows picked up across the board yesterday," says one trader. "Volumes are still not huge, but we're now seeing a lot of enquiries from investors looking for paper."

    Notably, the trader adds: "That .......

    SCIWire 27 April 2016

  • Sears exposure gauged

    Nine loans with a balance of US$111.9m across nine CMBS have exposure to Sears Holdings Corp's latest round of store closures, according to Morningstar Credit Ratings. The retailer plans to shutter 68 Kmart and 10 Sears stores this summer.

    Morningstar has identified five CMBS loans worth US$56.9m in five CMBS with significantly elevated risk of term or maturity default related .......

    News Round-up 26 April 2016
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