CMBS

  • Maturity wall diminishing

    Falling US CMBS delinquencies and the slowing pace of special servicing loan transfers year-over-year have contributed to improved performance metrics within the existing portfolio of Fitch-rated fixed rate conduit transactions. At the same time, the size of the maturity wall has declined year-over-year and continues to diminish.

    Current delinquencies have declined by over 50% from a peak of 9.01% in .......

    News Round-up 25 January 2016

  • Conduit leverage to 'continue rising'

    The credit quality of US conduit/fusion CMBS continued to deteriorate in Q415, Moody's notes. Indeed, the agency expects conduit loan leverage to continue rising "for some time yet".

    Conduit loan leverage - as measured by Moody's loan-to-value (MLTV) ratio - rose to 118.9% in 4Q15 from 118.2% in the prior quarter, exceeding its pre-crisis high of 117.5% for the third .......

    News Round-up 25 January 2016

  • Euro secondary strengthens

    Tone in the European securitisation secondary market continued to strengthen into the last week's close on the back of positive wider markets.

    Once again, senior prime assets were the main focus on Friday, albeit with patchy and thin flows on- and off-BWIC. Secondary spreads in autos and UK RMBS held steady, but Dutch RMBS edged a little wider following the .......

    SCIWire 25 January 2016

  • STS securitisation supported

    The European Economic and Social Committee (EESC) has added its voice to calls for the introduction of a simple, transparent and standardised (STS) securitisation regime in Europe. It says securitisation can still be a secure system and can create growth through the unlocking of additional credit.

    "The risks involved in such transactions should now be clearly understood and responsibilities well .......

    News Round-up 22 January 2016

  • Euro secondary improves

    Better wider markets have improved European securitisation secondary tone once more.

    A combination of a return to form in stocks/broader credit, the ECB press conference and the successful execution of the Spanish OWIC boosted the secondary market across the board yesterday and that has continued into this morning. Nevertheless, it is only the prime and ECB-eligible peripheral sectors that are .......

    SCIWire 22 January 2016

  • EBA consults on 'implicit support'

    The EBA has launched a consultation regarding its guidelines on implicit support for securitisation transactions. The guidelines were drafted to provide clarity on what constitutes 'arm's length conditions' and when a transaction is not structured to provide support for securitisations.

    The capital requirements regulation (CRR) foresees restrictions on implicit support to securitisations due to significant supervisory concerns and the belief .......

    News Round-up 21 January 2016

  • New highs for CMBS repays

    Two-thirds of European CMBS loans maturing in 2016 will repay as a result of high prepayment levels, according to Moody's. This will be a dramatic increase on the average 38% repayment rate that has been recorded since 1Q12.

    "These high repayments are a product of improved lending conditions and stabilising occupational market fundamentals for secondary quality properties, which started 12 .......

    News Round-up 21 January 2016

  • Euro ABS/MBS turns

    After two weeks of insulation from broader market volatility the positive tone in the European ABS/MBS secondary market has turned.

    "It's become challenging, to put it mildly, now that macro volatility is impacting our space and drying up liquidity," says one trader. "The last two sessions have been risk off and I don't see that changing today with most investors .......

    SCIWire 21 January 2016

  • Euro secondary story unchanged

    Yesterday's improvement in broader markets did not change the story in the European securitisation secondary market and this morning's macro weakness is likely to keep it that way.

    "Yesterday things were a bit better overall and credit indices came in some way," says one trader. "However, little changed in our sector."

    Instead, recent trends continue, the trader says. "Senior prime .......

    SCIWire 20 January 2016

  • Multifamily expert added

    Walker & Dunlop has beefed up its multifamily finance group by hiring Hal Reinauer as vp. In this role, he will focus on originating Fannie Mae and Freddie Mac loans out of the firm's Boston office.

    Reinauer moves from his role as director at Holliday Fenoglio Fowler, where he similarly concentrated on multifamily financing. He also previously served as an .......

    Job Swaps 20 January 2016

  • Vulcan CMBS prospects eyed

    The EuroCastle Office Portfolio in Vulcan (ELoC28) has been sold at a level sufficient to repay the securitised loan in full. Progress on the other loans securitised in the deal suggests that the class F and class G notes will suffer total losses.

    The €24.9m EuroCastle loan contains six office properties in Germany and accounts for 10% of the CMBS. A .......

    News 19 January 2016

  • Swaps allow for higher ratings

    Cross-currency swaps that mitigate the effect of foreign exchange controls have enabled Moody's to assign ratings above the applicable foreign currency bond ceilings to foreign currency-denominated securitisation transactions, says the rating agency. Without these features such ratings would not be attainable.

    "To mitigate the transferability and convertibility restrictions, an offshore swap counterparty typically receives local currency payments from an onshore .......

    News Round-up 19 January 2016

  • Oil slump is CRT concern

    Oil prices last week hit their lowest mark for 12 years, with significant implications for CRT deals. Should oil prices remain depressed over the coming quarters, Barclays analysts expect the underperformance of oil-affected areas to worsen.

    Oil prices began to fall in 2H14 and have been on a downward trajectory for much of 2015-2016. While oil areas had been outperforming .......

    News 19 January 2016

  • Hudson loses another anchor

    Hudson Valley Mall is set to lose another anchor chain when Macy's closes shop in April 2016. Kroll Bond Rating Agency warns that the regional shopping mall in Kingston, New York, is exposed to the 'debilitating effects' of co-tenancy clauses.

    The shopping mall backs US$49.6m (12.8%) of pooled debt in CFCRE 2011-C1. However, Macy's looming closure, the loss of JC .......

    News Round-up 19 January 2016

  • Euro secondary hesitant

    It was an unsurprisingly quiet day yesterday in the European securitisation secondary market as participants appear hesitant to return to the fray.

    As a result of the US holiday and continuing broader market volatility it was a quiet session yesterday even for a Monday. Many investors remained sidelined and appear to be waiting for some signs of broader credit stability .......

    SCIWire 19 January 2016

  • Euro secondary resilient

    The European securitisation secondary market remained resilient into Friday's close despite broader market volatility.

    That volatility continues to ensure that activity is patchy, however. Nevertheless, the last session of the week was reasonably busy for a Friday as technicals, notably lack of supply, continue to support spreads and fuel buying interest.

    The major beneficiaries are still ECB-eligible peripherals, CMBS and .......

    SCIWire 18 January 2016

  • Finalised FRTB 'still punitive'

    The Basel Committee has released the final version of its fundamental review of the trading book (FRTB). While the final ruling remains punitive for securitisation, it is not as harsh as earlier drafts suggested it might be.

    The final version has lower capital requirements than earlier versions recommended. However, the proposed requirements are still higher than the current SSFA standard.

    News 15 January 2016

  • Unique features boost SFR deal

    Home Partners of America's (HPA) unique tenant-driven property acquisition and rent-to-own business strategy will benefit the performance of its first single-family rental (SFR) securitisation, Home Partners of America 2016-1, says Moody's. HPA 2016-1 hit the market on 12 January.

    HPA acquired the properties backing the transaction based on requests from prospective homeowners who desired to rent the properties with eventual .......

    News Round-up 15 January 2016

  • EMEA default rate stable

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe decreased slightly to 10% from 10.5% at end-December 2015. Overall, the senior loan delinquency rate decreased to 47.7% from 48%.

    The delinquency rate for continental European senior loans decreased slightly to 60.2% from 60.3%. The rate for UK loans remained stable at 20%.

    .......

    News Round-up 15 January 2016

  • StuyTown pay-offs emerge

    MLCFC 2007-5 has become one of the first CMBS to report distributions from the pay-off of the US$3bn Stuyvesant Town/Peter Cooper Village loan, resulting in the largest liquidation in the market's history with no loss (SCI passim). However, Barclays CMBS analysts note that the remittance report fails to answer key questions about excess proceeds and the amount paid for a .......

    News 15 January 2016

  • Euro secondary steady

    The European securitisation secondary market continues to see steady activity and pricing levels are for the most part stable.

    Once again, yesterday's activity was driven primarily by BWICs and flows off the back of those auctions. The main interest surrounded autos following the Renault raid with a few sellers emerging after the news broke, but by the close buying interest had .......

    SCIWire 15 January 2016
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