CMBS

  • Euro secondary fades

    Levels and activity are fading in the European securitisation secondary market as the broader market rally runs out of steam.

    Activity remained patchy across the board yesterday, with prime assets once again leading the way, albeit in lower volumes than in previous sessions. Meanwhile, the appetite for Portuguese paper of recent days has faded somewhat and kept spreads slightly off .......

    SCIWire 19 February 2016

  • SFR operating expenses up

    Net operating expenses for most single-family rental (SFR) securitisations issued in 2013 and 2014 are slightly above underwritten assumptions, which Moody's describes as slightly credit negative for the affected transactions. Exceptions to this trend are the Invitation Homes (IH) and Silver Bay deals.

    The first six months of operating cashflows for 2013 and 2014 SFR transactions suggest that non-contractual costs .......

    News Round-up 18 February 2016

  • Euro ABS/MBS split

    There continues to be a strong split in where activity is taking place in the European ABS/MBS secondary market.

    "Tone over the past few days has been much more positive in line with the macro trend," says one trader. "However, there is still a marked divergence over where activity is centred."

    The trader continues: "Most focus continues to surround prime .......

    SCIWire 18 February 2016

  • Euro secondary improves

    Tone in many European securitisation secondary market sectors continues to improve in line with broader markets.

    "Yesterday, tone was bit better overall in our space as credit in general continued to improve," says one trader. "But the biggest story was Portugal."

    The trader continues: "The tender announcement from BCP for MAGEL 2  and 3 combined with rising sovereign bonds and .......

    SCIWire 17 February 2016

  • CMBS spread widening to continue?

    An analysis of previous US CMBS corrections undertaken by Morgan Stanley CMBS strategists suggests that the current sell-off in the market is not as pronounced, despite it being the longest on record. The study indicates that while there may be periodic tactical rallies, CMBS spreads can continue widening for four primary reasons until the S&P 500 index troughs.

    The start .......

    News 16 February 2016

  • Euro secondary stalemate

    With the US absent and continuing improvements in broader markets, it was stalemate in the European securitisation secondary market yesterday.

    "Market tone is generally OK," says one trader. "But with the US holiday not a lot went on yesterday."

    However, he adds: "We did see a couple of BWICs come out in the afternoon and all but one 1.0 CMBS .......

    SCIWire 16 February 2016

  • Delinquencies post largest decline

    US CMBS delinquencies posted the largest month-over-month decline in January since Fitch began tracking the segment 15 years ago, reflecting the resolution of the Stuyvesant Town/Peter Cooper Village asset (SCI passim). Loan delinquencies fell by 109bp last month to 2.93% from 4.02% at end-2015, while the dollar balance of late-pays fell by US$4.2bn to US$11.1bn. The last time delinquencies dropped .......

    News Round-up 15 February 2016

  • Euro secondary stronger

    After a relatively benign close to last week, today is opening with a stronger tone across the bulk of the European securitisation secondary market.

    Friday once again saw extremely thin liquidity across the board, but low beta paper continued to catch a bid and senior peripherals traded well on- and off-BWIC, especially Italian names, but even select Portuguese bonds tightened .......

    SCIWire 15 February 2016

  • Euro defaults remain stable

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe remained stable at 10%, at end-January. Overall, the senior loan delinquency rate increased slightly to 47.8% from 47.7% month-over-month.

    The delinquency rate for continental European senior loans decreased slightly to 59.8% from 60.2%. The rate for UK loans increased to 22% from 20%.

    .......

    News Round-up 12 February 2016

  • Euro secondary slides

    Activity and pricing levels are sliding across the European securitisation secondary market.

    Prime autos and RMBS finally succumbed to broader market downward pressure and edged wider on very light volumes yesterday. 2.0 CMBS is still offering some resistance, but elsewhere tone remains weak and liquidity is thin across the board.

    Street buyers are occasionally being seen in select names in .......

    SCIWire 12 February 2016

  • Euro ABS/MBS switchback

    Yesterday was a better day in the European ABS/MBS secondary market, but today looks set to see a switch back to recent patterns.

    "There was a slight rebound in broader markets yesterday, which enticed people back into the market," says one trader. "Notably, we saw some selling of senior assets and they all went through in line with expectations."

    However, .......

    SCIWire 11 February 2016

  • CMBS originations business closed

    Redwood Trust is repositioning its commercial mortgage business to focus solely on investing activities and will discontinue commercial loan originations for CMBS distribution. However, the company will continue to opportunistically invest in mezzanine and subordinate CMBS tranches that meet its risk/return profile.

    "We have concluded that the challenging market conditions our CMBS conduit has faced over the past few quarters .......

    Job Swaps 10 February 2016

  • CAF 2015-1 workout progressing

    The first loan default in the US$251.6m Colony American Finance 2015-1 multi-borrower single-family rental (SFR) securitisation is expected to have little impact on the transaction's performance, as the US$1.1m loan accounts for just 0.4% of the collateral pool. The loan transferred to the special servicer - Midland Loan Services - in November 2015, a month after the transaction closed.

    Of .......

    News Round-up 10 February 2016

  • Euro secondary struggles

    The European securitisation secondary market continues to struggle amid wider market volatility, but there are still some exceptions.

    "Yesterday was once again quite weak overall," says one trader. "There was hope of some improvement thanks to better things in broader credit, but it will take more than that for us to recover more fully."

    However, the trader adds: "We continue to see .......

    SCIWire 10 February 2016

  • Allianz buys CMBS investor

    Allianz Global Investors is set to purchase Rogge Global Partners (RGP) from rival insurer Old Mutual for an undisclosed fee. The purchase will see Allianz boost its fixed income expertise and inherit RGP's various funds, including its investment strategies in CMBS.

    Allianz says that RGP's team will become part of its global investment platform. This will add to the purchaser's growth, .......

    Job Swaps 9 February 2016

  • CMBS pay-offs jump

    The percentage of US CMBS loans paying off on their balloon date rebounded sharply last month. The January reading is 67.2%, more than 15 points above the December number and close to the 12-month moving average of 67.9%, according to Trepp.

    By loan count as opposed to balance, 64.5% of loans paid off in January. On this basis, the pay-off .......

    News Round-up 9 February 2016

  • Gateway mod to realise a loss?

    The US$94.2m Gateway Salt Lake loan - securitised in JPMCC 2010-C1 - has been assumed at US$78.5m and modified, following its acquisition by an investor group that reportedly includes Vestar and Oaktree (see SCI's CMBS loan events database). Morgan Stanley CMBS strategists expect the move to result in significant interest shortfalls and a loss to the trust of .......

    News 9 February 2016

  • Euro secondary sidelined

    The European securitisation secondary market remains quiet as participants continue sit out wider market volatility.

    "It's understandably very quiet as everyone watches what's going on in banks and financials, which is brutal to say the least," says one trader. "The majority of investors we speak to are planning on staying on the sidelines - everyone is in risk-off mode."

    However, .......

    SCIWire 9 February 2016

  • CMBS tweak raises thickness fears

    MSBAM 2016-C28 contains a series of non-investment grade exchangeable classes, which is a nuance not seen before in a CMBS 2.0 transaction. Fitch believes the feature raises the question of sufficient tranche thickness and maintains that insufficient thickness - particularly below 1% - creates accelerated downgrade risk and a higher rate of loss given default.

    Fitch has assigned a provisional .......

    News Round-up 8 February 2016

  • Hancock exposure gauged

    About US$114m in US CMBS securities across 16 loans could be affected by Hancock Fabric's second bankruptcy filing in nine years, according to Morningstar Credit Ratings. However, the agency expects the impact to be limited to a few small-balance loans with low current debt service coverage ratios and projected occupancy below 80%, should the retailer reject its leases.

    Among the .......

    News Round-up 8 February 2016

  • Euro secondary lacklustre

    Friday saw another lacklustre session in the European securitisation secondary market.

    Macro market weakness once again kept investors stuck on the sidelines. Consequently, flows were light and spreads were broadly range-bound.

    Prime assets were once again the positive area with two-way flows albeit at low volumes focused at the front end of the curve. Meanwhile, non-eligible peripheral bonds remain the .......

    SCIWire 8 February 2016
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