CMBS

  • 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

  • Liquidity tops investor concerns

    While investor fears over China-related uncertainty have subsided, concerns regarding liquidity and central bank policies have grown, according to Morgan Stanley's latest global securitised products investor quarterly survey. Liquidity is the top concern for 21% of respondents.

    Central bank policies cause the most concern for 18% of investors while disappointing US economic growth is now the third greatest concern, at .......

    News 26 April 2016

  • Euro secondary steady

    The European securitisation secondary market continues to move steadily ahead.

    Tone continued to be positive across the board at the end of last week and into the start of this. However, lack of supply is still an issue and is causing sessions to be steady rather than spectacular.

    Nevertheless, many of the line items in for the bid are continuing .......

    SCIWire 26 April 2016

  • Loss severities remain steady

    Fitch reports that US CMBS loss severities remain steady year-over-year, rising only slightly to 45.7% in 2015 from 44.8% in 2014. The historical average now stands at 46.6%.

    As the inventory in special servicing has fallen, special servicers accordingly resolved fewer loans in 2015 compared with 2014. However, the proportion of the loans resolved with a loss is lower.

    "The .......

    News Round-up 25 April 2016

  • 2016 vintage touted

    Recent capital markets volatility has resulted in tighter lending conditions where US CMBS originators are becoming more selective and conservative, while providing the B-piece buyer with greater buying power. Morgan Stanley CMBS strategists believe this will result in better collateral performance of 2016 vintage loans compared to those securitised in 2015 and 2014 vintage deals, where underwriting was less stringent. .......

    News 21 April 2016

  • CREFC Europe board changes made

    CREFC Europe has made a series of board appointments, including Steve Willingham as the successor to chair Madeleine McDougall on a one-year term from 14 November. ING Real Estate Finance structured products md Mike Shields has also joined the association's board.

    Willingham is head of real estate finance for EMEA at HSBC and has also worked at BlackRock, MGPA, as .......

    Job Swaps 21 April 2016

  • Conduit CMBS LTVs decline

    The credit quality of US conduit/fusion CMBS as measured by Moody's LTV (MLTV) ratio improved in 1Q16, says the rating agency. The MLTV ratio declined from 118.9% in 4Q15 to 118.1% last quarter, marking the first decline since the start of 2013.

    "The credit pendulum swung in favour of subordinate bond buyers late last year, and increasingly they are helping .......

    News Round-up 21 April 2016

  • Euro secondary scrappy

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

    Sentiment remains very positive across the vast majority of securitisation sectors in line with wider markets. However, lack of supply is still hampering any sizeable cohesive trading.

    The closest to that yesterday came in Italian paper. There, following strong prints on the 11:00 Italian RMBS BWIC there was an .......

    SCIWire 21 April 2016

  • Sport Chalet exposure gauged

    Morningstar believes that 11 CMBS loans - several of which have significantly elevated risk of term or maturity default - worth US$628.9m could be affected by Vestis Retail Group shuttering its Sport Chalet division in connection with its 18 April Chapter 11 bankruptcy filing. The sporting goods retailer has reportedly already begun liquidation sales at all 47 of its stores .......

    News 20 April 2016

  • Special situations analyst added

    TCW Group has appointed Steven Purdy to its fixed income credit research group as md and special situations analyst. He will take responsibility for analysing and identifying credit opportunities with companies in stressed and distressed situations.

    Purdy is based in Los Angeles and reports to Jamie Farnham, director of credit research. He was previously based in London with TPG Capital .......

    Job Swaps 20 April 2016

  • Release pricing risks underlined

    CMBS investors could be exposed to greater idiosyncratic property risk as a result of innovations around release pricing. According to Fitch, commercial property lending has seen traditional release pricing mechanisms become modified to favour borrowers.

    This pricing structure governs how much debt borrowers must repay if they dispose of individual properties over the term of the loan. Lenders traditionally require a .......

    News Round-up 20 April 2016

  • Euro ABS/MBS picks up

    Tone and volumes are on the rise across the European ABS/MBS secondary market.

    "The market has been much stronger over the past few days," says one trader. "Now, at last, there is a bit more activity pretty much everywhere."

    The trader continues: "We're seeing buyers across every single sector except UK sterling, which remains a little difficult and Portuguese paper, but .......

    SCIWire 20 April 2016

  • Euro secondary stable

    The European securitisation secondary market continues to be stable despite wider market vacillation yesterday.

    A buying bias across asset classes remains apparent, but limited secondary supply is keeping activity patchy. Bolstered by new issuance UK RMBS is seeing some action and spreads are holding up despite the evolving Brexit story. Selective trading in CMBS and some high profile prime names .......

    SCIWire 19 April 2016

  • CMBS loan drops examined

    Kroll Bond Rating Agency has published a report that provides insight into the nature of changes that occur to US CMBS loan pools during the securitisation process. Many of these changes are in the form of loan 'drops' - loans that don't make the cut for a variety of reasons, including B-piece buyer kick-outs, or in instances where borrowers turn .......

    News Round-up 18 April 2016

  • CMBS defeasance driving up

    US CMBS defeasance activity in 2015 reached record levels for the post-crisis era, according to Moody's. In total, activity rose to US$22.4bn in 2015, a 7% increase over the US$20.9bn in 2014 and the highest figure since 2007.

    Moody's says that the rise in activity was a result of borrowers looking to capitalise on low interest rates and complete refinancing ahead of the .......

    News Round-up 18 April 2016

  • Special servicing transfers diverge

    Approximately US$15.1bn across 977 US CMBS loans was specially serviced at end-1Q16, compared to US$22.5bn across 1,219 loans at end-1Q15, Fitch reports. While the balance of specially serviced CMBS 1.0 loans has fallen to US$14.4bn from US$22.3bn between 1Q15 and 1Q16, the balance of CMBS 2.0 loans transferring to the special servicer has increased to US$693m from US$242m.

    In 1Q16 .......

    News Round-up 18 April 2016

  • SFR loan extensions expected

    During 2016, the operators for eight single-family rental transactions are likely to exercise their loan term extensions for the first time, says Moody's in its latest ResiLandscape publication. This should not have a material credit impact on the securitisations, however.

    Invitation Homes 2013-SFR1 was the first SFR deal to exercise its one-year optional term extension, which it did last December (SCI 9 .......

    News Round-up 15 April 2016

  • US CMBS shaped by primary

    New issuance pricing and trends are shaping what's happening in the US non-agency CMBS secondary market.

    "Primary is driving a lot of what's happening in secondary right now," says one trader. "New issuance spreads have come back a long way from recent wides - triple-As peaked at 173 and the latest JPM deal priced at 129 - and secondary levels .......

    SCIWire 14 April 2016

  • Euro CMBS delinquencies down

    The 12-month rolling loan maturity default rate for European CMBS rated by S&P remained stable at 10.3% at the end of March, the rating agency reports in its latest monthly bulletin. The senior loan delinquency rate decreased from 46.5% to 45.3%.

    Breaking down the delinquency rate, the decrease for continental European senior loans was from 58.8% to 58.4%. The decrease .......

    News Round-up 14 April 2016

  • Euro secondary selective

    Trading continues to be selective across the European securitisation secondary market.

    "Yesterday we saw some action in prime," says one trader. "On BWIC there was a reasonably large Dutch RMBS list that traded at very tight levels - four-year STORM in the +25 area, for example. At the same time, UK prime saw two-way flows and having been under a .......

    SCIWire 13 April 2016

  • Euro secondary solid

    The European securitisation secondary market remains solid but fairly quiet.

    Tone remains firm across the board though activity is still patchy. An uptick in flows and secondary supply in the middle of last week fizzled out by Friday and yesterday was no different with only very select pockets of activity, which is keeping spreads range-bound.

    Notably, Italian paper did manage .......

    SCIWire 12 April 2016
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