CMBS

  • 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

  • Euro maturity defaults dip

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe increased slightly to 10.3% from 10% at end-February. Overall, the senior loan delinquency rate decreased to 46.5% from 47.8%, however.

    The delinquency rate for continental European senior loans decreased to 58.8% from 59.8% during the month. But the rate for UK loans increased slightly to .......

    News Round-up 15 March 2016

  • Indian distressed opportunities targeted

    The Canada Pension Plan Investment Board (CPPIB) and Kotak Mahindra Group have signed an agreement to invest in stressed assets in India. The agreement allows for a total investment of up to US$525m, with CPPIB able to invest up to US$450m.

    The flexible investment mandate seeks to take advantage of the growing opportunity arising from the current stress in the Indian banking .......

    News Round-up 15 March 2016

  • Italian SPV rules amended

    The Bank of Italy has updated its supervisory instructions for banks and financial intermediaries concerning loans granted by securitisation vehicles. There are now six key requirements.

    First, borrowers must be selected by a bank or financial intermediary registered under article 106 of the Italian Banking Act. The securities issued are reserved for qualified investors only, and the bank or intermediary must .......

    News Round-up 14 March 2016

  • Delinquencies continue to decline

    US CMBS delinquencies declined by 2bp in February to 2.91% from 2.93% a month earlier, according to Fitch's latest index results for the sector. In total, resolutions of US$980m outpaced new delinquencies of US$751m. Fitch-rated new issuance volume of US$703m (one transaction) in January was far outpaced by US$4.8bn in portfolio run-off, causing a decrease in the index denominator.

    The .......

    News Round-up 14 March 2016

  • Euro secondary sluggish

    Despite last week ending strongly in wider credit the European securitisation secondary market remains sluggish.

    Market sentiment continues to be increasingly positive and there are selective buyers in evidence, but for the most part flows and BWIC supply are patchy and liquidity is thin as investors look likely to stay on the sidelines until the wider credit rally has been .......

    SCIWire 14 March 2016

  • MassMutual affiliates to merge

    Babson Capital Management, its subsidiaries Cornerstone Real Estate Advisers and Wood Creek Capital Management, and Baring Asset Management are set to combine under the Barings brand. The combination creates a global multi-asset investment management firm with over US$260bn of assets under management, offices in 20 countries and over 1,700 professionals.

    The firm will be led by Tom Finke, current chairman .......

    Job Swaps 11 March 2016

  • ECB looks to provide boost

    A new set of measures announced by the ECB could boost ABS supply. The central bank is launching a second TLTRO programme, expanding QE and cutting rates.

    The ECB's deposit rate has been cut by 10bp to -0.4%. Its main refinancing rate has been cut by 5bp to zero.

    The TLTRO 2 programme will - in contrast to the first TLTRO .......

    News 11 March 2016

  • AnaCap makes Dutch purchase

    AnaCap Financial Partners and Arrow Global have acquired a portfolio of Dutch residential and commercial mortgages with a face value of €127m. AnaCap also recently acquired a pair of Italian NPL portfolios (SCI 4 March).

    The Dutch portfolio has been acquired by vehicles owned by AnaCap Credit Opportunities III and Arrow Capital. It is AnaCap's first such transaction in the .......

    News Round-up 10 March 2016

  • Pay-off percentage slips

    Trepp reports that the percentage of US CMBS loans paying off on their balloon date slipped modestly in February. Last month's reading is 65.4%, slightly below the January number of 67.2% and close to the 12-month moving average of 68.4%.

    By loan count as opposed to balance, 73.2% of loans paid off in February. On this basis, the pay-off rate .......

    News Round-up 10 March 2016

  • Euro secondary stable

    The European securitisation secondary market remains stable despite signs of an uptick in volume.

    "Yesterday the market was more or less stable despite an increased number of lists," says one trader. "Notably, the large prime RMBS list traded quite well with most of the 24 bonds involved going through in line with recent levels."

    At the same time, the trader .......

    SCIWire 10 March 2016

  • US CMBS still split

    The divergence in synthetic and cash spreads continues to pre-occupy the US non-agency CMBS secondary market.

    "The big story remains CMBX continuing to tighten significantly while cash keeps going wider," says one trader. "Over the last three weeks triple-A CMBX has come in 35bp and triple-B minus by more than 100bp, whereas triple-A cash spreads have gone out by eight .......

    SCIWire 9 March 2016

  • Euro secondary sidelined

    The improving macro picture has so far failed to encourage the majority of participants back into the European securitisation secondary market.

    "Yesterday was mainly dominated by BWICs, which went through OK but a lot of clients are still on the sidelines," says one trader. "While market tone keeps improving in line with broader markets liquidity hasn't moved in tandem with .......

    SCIWire 9 March 2016

  • Oaktree targets Aussie growth

    Oaktree Capital Group has opened an office in Sydney, Australia. Byron Beath has joined the firm as md to lead investment activities in Australia and New Zealand and will be based in the Sydney office.

    Beath was previously at Macquarie Bank. He spent 15 years at the bank, most recently as a director in the corporate and asset finance division.

    .......

    Job Swaps 8 March 2016

  • Sports Authority exposure gauged

    Fitch suggests that Sports Authority's withdrawal from some locations, following its Chapter 11 bankruptcy protection filing, may pressure smaller strip malls or neighbourhood shopping centres. However, US CMBS deals that the agency rates aren't expected to be significantly impacted by the store closures.

    Fitch has identified 49 transactions with exposure to Sports Authority, 20 of which are CMBS 1.0 vintages .......

    News Round-up 8 March 2016

  • Euro secondary pick-up?

    After a very slow start to the week yesterday European securitisation secondary market activity looks set to pick up today.

    A volatile day in wider markets kept most participants on the sidelines once more and meant flows were extremely light again yesterday, nor were there any BWICs. Consequently, secondary spreads were unchanged across the board.

    Nevertheless, market sentiment remains positive. .......

    SCIWire 8 March 2016

  • Quarterly loss severity spikes

    US CMBS liquidations in 4Q15 saw the highest quarterly loss severity since 1Q10, when Moody's began tracking losses across the sector. The agency notes that severities were driven by a number of large loans liquidated at high losses.

    "The fourth quarter of 2015 saw 240 loans liquidate with an average loss severity of 58.2%, up significantly from the 210 loans .......

    News Round-up 7 March 2016

  • AnaCap increases Italian NPL holdings

    AnaCap Financial Partners has purchased two Italian NPL portfolios with a face value of more than €2bn. The portfolios were acquired by AnaCap Credit Opportunities III from SPVs whose securities were majority owned by GE Capital Real Estate and RBS.

    The portfolios each have a gross book value of around €1bn and include secured and unsecured SME loans, with the .......

    News Round-up 4 March 2016

  • GGLF expected to stabilise

    Moody's says that the German Ground Lease Finance (GGLF) CMBS continues to perform in line with its expectations after the agency met with the managing agent Immofori in February. Refinancing remains a risk to the transaction, however, and will be contingent on the amount of excess cash left available to amortise the structure prior to its final maturity.

    The transaction has caused .......

    News Round-up 4 March 2016

  • First CMBS 2.0 loan sees loss

    February US CMBS 2.0 remittances show that 15 loans totalling US$103m became newly delinquent during the month, while eight loans totalling US$104m transferred to special servicing and 189 totalling US$3bn were watchlisted. A 2011-vintage loan became the first CMBS 2.0 asset to liquidate at a significant loss.

    The US$12.4m Campus Habitat 15 loan (securitised in WFRBS 2011-C3) was last month .......

    News 4 March 2016

  • Loss, liquidation totals decline

    US CMBS loss and liquidation totals declined substantially last month, falling in line with levels last seen 12 months ago, according to Trepp. A total of US$567m across 43 loans was disposed of in February, down from US$887.7m in December and US$2.4bn in January. Average loan size also plunged to US$13.2m this month from US$19.4m in January.

    Four relatively small .......

    News Round-up 3 March 2016
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