CMBS

  • Euro secondary stifled

    Sentiment continues to be strong across the European securitisation market but technicals are stifling activity.

    Buying interest remained apparent throughout ABS/MBS yesterday with the exception of UK RMBS, which is seeing some investors hold back over Brexit uncertainty. However, flows overall were still light and there were significant DNTs on BWIC as the gap in buyer and seller expectations for .......

    SCIWire 31 March 2016

  • Auction success for CGCMT 2007-C6

    Six REO CMBS assets with a combined unpaid balance of US$55.4m, accounting for 2% of the CGCMT 2007-C6 pool, were put up for bid in online auctions last week. Kroll Bond Rating Agency research shows that all of the properties were in escrow as of 24 March, indicating that they were sold.

    The agency anticipates that the assets will be .......

    News Round-up 30 March 2016

  • REO holds foretell CMBS losses

    Longer REO asset hold times could signal higher US CMBS losses, says Fitch. The average length of time REO assets spent in special servicing increased 10% last year, while REO ageing increased 16%.

    A review of CMBS special servicers' REO asset inventory reveals the average time REO assets spent in special servicing increased to 42 months as of year-end 2015, .......

    News Round-up 30 March 2016

  • Euro secondary returns

    After a quiet few sessions surrounding the long weekend the European securitisation secondary market looks to be returning to life.

    Yesterday once again saw light activity but tone remains overwhelming positive across most European ABS/MBS sectors and spreads remain well supported as more and more participants return post-Easter. Meanwhile, CLOs continued to lead the way in terms of both activity .......

    SCIWire 30 March 2016

  • Trust issues

    Redwood exit signals CMBS origination pull-back

    The US CMBS market has encountered a rocky start to 2016, with new issue pricing spreads performing unpredictably. A number of other concerns have cast doubt over profitability on the origination side, prompting suggestions that lenders may slowly thin out.

    Redwood Trust is one high-profile casualty of CMBS market volatility, having recently announced its plan to discontinue loan originations for .......

    News Analysis 30 March 2016

  • Japanese rating upgrades increase

    The upgrade rate for Japanese structured finance securities rose in 2015, notes S&P. S&P Japan raised 8.3% of its outstanding ratings on Japanese structured finance securities last year, up from 4.5% in 2014.

    The 2015 upgrade rate exceeded the downgrade rate of 4.5% and resulted in an upgrade-to-downgrade ratio of 186%, which also surpassed the 2014 ratio of 143%. Separately .......

    News Round-up 29 March 2016

  • Chinese ABS expansion 'to continue'

    China's securitisation market will continue to grow this year, albeit at a slower pace than in 2015, says Fitch. Issuance last year doubled to reach a record CNY600bn from more than 300 transactions.

    Market expansion will be driven by regulatory changes which have made it simpler and more efficient for financial institutions to issue structured finance securities. The rating agency .......

    News Round-up 29 March 2016

  • RPL, NPL approach updated

    Moody's has made updates to its rating methodology for securitisations backed by NPLs and reperforming loans (RPLs). The changes incorporate proposals that the agency made late last year in a request for comment on the rating approach (SCI 25 November 2015).

    The main changes involve a consolidation of the approaches Moody's has used to rate RMBS of NPLs and RPLs into a .......

    News Round-up 24 March 2016

  • Energy turmoil hits Canadian CMBS

    Of the 331 loans in Fitch-rated Canadian CMBS, six have transferred to special servicing due to oil industry exposure, as of the March 2016 remittance. This represents 2.4% of the total C$2.7bn of Canadian transactions across nine conduits and one large loan transaction.

    The affected loans are: Lakewood Apartments (representing 8.3% of IMSCI 2012-2), Lunar & Whimbrel Apartments (3.2% of .......

    News Round-up 24 March 2016

  • CMBS TRS index introduced

    Markit and Trepp have launched a new total return swap index referencing US last cashflow triple-A rated CMBS bonds issued in the previous 12 months. Dubbed the Markit iBoxx Trepp CMBS TRS Index, the underlying index for the contract is the Markit iBoxx Trepp CMBS Original AAA Rolling Index.

    Markit will be the index administrator and calculation agent for the .......

    News 24 March 2016

  • Euro secondary steady

    Activity in the European securitisation secondary market is steady rather than spectacular at present.

    Liquidity grows ever thinner as the long holiday weekend approaches and light, patchy flows continue to characterise the market. Yesterday's BWICs traded reasonably well for the most part, though the ABS/MBS lists yielded little colour. For now at least spreads across the board remain stable despite .......

    SCIWire 23 March 2016

  • CMBS portfolio offloaded

    American Capital has sold a US$64.9m portfolio of CMBS bonds to an undisclosed, unaffiliated group of third parties. The sale includes related fee agreements and select collateral administration rights. The firm says that the assets within the portfolio have a fair value of approximately US$40.4m as of end-2015.

    .......

    News Round-up 22 March 2016

  • Strategic transaction on hold?

    Chinese investors have dominated the US hotel investment landscape recently, aggressively bidding on mostly upper-tier assets in core markets. Historically, this type of activity - rich property valuations paid by less-established (often international) market participants - has corresponded with US commercial real estate cycle peaks, according to Fitch.

    Chinese insurer Anbang Insurance Group last week reportedly offered to acquire the .......

    News Round-up 21 March 2016

  • SFR exposure encouraged

    SFR transactions offer value to STACR, CAS, legacy RMBS and consumer ABS deals, argue Wells Fargo analysts. However, there is only limited upside when compared to single-borrower and large loan CMBS.

    "We believe that triple-A and double-A rated SFR bonds should be viewed as a diversifier within a portfolio containing non-agency CMBS or non-agency RMBS. However, we do not see .......

    News 18 March 2016

  • CMBS 'looking cheap'

    US CMBS spreads remain significantly wide of competing corporate spreads. Despite extra volatility justifying some spread pick-up, single-A CMBS paper is now looking particularly cheap.

    Double-As are 125bp wider than corporate single-A seven- to 10-year spreads, having averaged only 60bp wider over the past few years, note Citi analysts. Single-A spreads pick up more than 200bp over corporates, despite a .......

    News 18 March 2016

  • Euro secondary upswing

    The European securitisation secondary market is seeing an upswing in activity once again.

    Yesterday saw an uptick in activity after a quieter Wednesday, although focus remains very patchy. Peripherals fared well as did UK non-conforming, which began to reverse recent widening amid strong execution across the session's MBS BWICs. However, it was CLOs that once again led the way with .......

    SCIWire 18 March 2016

  • Euro secondary partly pauses

    The bulk of the European securitisation secondary market took a pause yesterday, but CLOs continue to outperform.

    "Yesterday was a bit quieter after the pick-up in activity that followed the ECB last week and into the start of this," says one trader. "BWICs have been the main focus but supply dropped as many people used the excuse of the FOMC .......

    SCIWire 17 March 2016

  • Airbnb threat to CMBS 'minimal'

    Moody's suggests that the supply and demand imbalance from overbuilding in the hotel sector poses a greater threat to US lodging sector CMBS than peer-to-peer home renting platforms such as Airbnb. This is in spite of the latter's continued growth.

    "Airbnb has had a remarkable growth trajectory," says Moody's vp and senior analyst Jay Rosen. "But the company competes for .......

    News Round-up 16 March 2016

  • Resi, CRE auction platforms launched

    Ten-X, formerly known as Auction.com, has launched two new transaction platforms for buying and selling residential and commercial real estate. Ten-X Homes has been created for move-in ready homes, while Ten-X Commercial is the next iteration of the firm's CRE offering.

    Ten-X Homes will offer homes from a wide range of sellers, including banks, investors, institutions, homebuilders and agents. It .......

    News Round-up 16 March 2016

  • Euro secondary mixed

    The European securitisation secondary market is seeing mixed activity and results as the wider credit rally runs out of steam.

    "Overall, the secondary market continues to normalise, but it is highly sector-dependant," says one trader. "Yesterday was active, but that was mainly off the back of BWICs, while customer flows were slower thanks to softening in wider credit."

    Those BWICs yielded mixed .......

    SCIWire 16 March 2016

  • ECB suggests regulatory tweaks

    The ECB has suggested changes to the new securitisation package proposed by the European Commission and adopted by the European Council in December. The package contains the new overarching European securitisation regulation - including STS - as well as the CRR amendment that sets banks' risk weights to securitisation exposures.

    On the topic of supervision, Rabobank credit analysts note it .......

    News Round-up 15 March 2016
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