CMBS

  • Rating agencies making progress

    The US SEC has issued its two annual staff reports on credit rating agencies registered as nationally recognised statistical rating organisations (NRSROs). The reports show the NRSROs have made operational improvements and have enhanced process accountability, controls and governance.

    The SEC says that its reports show that all NRSROs have enhanced their understanding of their obligations as regulated entities and .......

    News Round-up 4 January 2016

  • SF lawyer appointed in London

    Lisa Cargill has joined the structured transactions team at Morgan Lewis. She brings extensive structured finance experience across numerous jurisdictions and asset classes.

    Cargill will be based in London but will also partner with the firm's US team to help clients there with their European business dealings. She was previously at Sidley Austin.

    .......

    Job Swaps 4 January 2016

  • Concentration risk for Japanese CMBS

    The prepayment rates of underlying loans backing Japanese apartment loan CMBS remain high, which could lead to concentration risk in the loan pools, says Fitch. However, strong credit enhancement should act to mitigate this risk.

    The rating agency believes that the high prepayment rates are driven by refinancing. The outstanding balance of bank loans extended to individuals who manage rental-housing .......

    News Round-up 4 January 2016

  • 'No hope' for hope notes

    Despite the recovery in many US CMBS subsectors, Fitch continues to expect no recoveries from hope notes. This is because their structures do not provide sufficient incentive for borrowers to repay.

    The usage of hope notes peaked in 2011, with dispositions taking approximately 3.5 years from special servicing transfer to ultimate disposition. Loans totalling US$3.5bn were modified into hope notes .......

    News Round-up 4 January 2016

  • CMBX rule updates expected

    The Markit CMBX.9 index is expected to launch on 25 January 2016. Similar to the previous CMBX series (SCI 16 December 2014), CMBX.9 will likely include some modifications to the index rules to accommodate new trends seen in conduit deals in 2015.

    Morgan Stanley CMBS strategists highlight three notable CMBX index rule amendments for CMBX.9, the outcomes of which depend .......

    News Round-up 23 December 2015

  • Class A share added to fund

    Semper Capital Management has added a class A share to its Semper MBS Total Return Fund. Class A shares are retail shares that are charged a front-end sales load of up to 2%.

    The shares are charged a 0.25% Rule 12b-1 distribution and servicing fee, but do not have a contingent deferred sales charge. However, redemptions within 18 months of purchase of .......

    News Round-up 22 December 2015

  • RMBS, CLO fraud admitted

    A former co-head of US ABS, RMBS and CMBS trading at RBS Securities has waived his right to indictment and pleaded guilty to participating in a multimillion dollar securities fraud scheme. Adam Siegel admitted that he and colleagues conspired to increase RBS's profits on CLO and RMBS trades at the expense of customers.

    Siegel held the role at RBS from .......

    Job Swaps 22 December 2015

  • Conduit NOI trends assessed

    While US commercial property prices have now topped pre-crisis peak levels, NOI for collateral backing CMBS conduit loans has not yet fully recovered, notes Moody's. An analysis of NOI trends shows collateral NOI is up 9% from its 2004 baseline level, but 2% down from its pre-crisis peak.

    The rating agency analysed year-over-year changes in property financials between 2004 and .......

    News Round-up 21 December 2015

  • CMBS defaults edge up

    The 12-month rolling maturity default rate for European CMBS increased slightly in November to 10.5% from the previous month, according to S&P's latest index results for the sector. The delinquency rate for continental European senior loans decreased to 60.3% from 61.3%, while the rate for UK loans remained stable at 20%. Meanwhile, the overall delinquency rate for senior loans decreased to 48% from 49%.
     

    .......

    News Round-up 21 December 2015

  • Italian regs boost ABS

    The Bank of Italy's regulatory framework enacted in 2015 for financial intermediaries carrying out servicing activities is credit positive for all Italian structured finance deals, says Moody's. Certain types of consumer ABS deals - Cessione del Quinto (CDQ) and Delegazione di Pagamento (DP) - will benefit the most.

    Moody's notes that organisational and risk-control requirements for servicers will become stricter .......

    News Round-up 18 December 2015

  • Euro secondary stalls

    Activity in the European securitisation secondary market has stalled.

    Year-end illiquidity was fully in evidence yesterday with an extremely slow day across the board and secondary spreads closed unchanged. Italian and Dutch paper did garner some interest, but saw negligible trading.

    There is currently one BWIC on today's European schedule - a single €1.9m line of QUADF 2011-1 A1 due .......

    SCIWire 18 December 2015

  • Bloomberg to buy BRAIS

    Bloomberg has agreed to acquire the Barclays Risk Analytics and Index Solutions (BRAIS) business from the bank for approximately £520m. This includes Barclays' indices on securitised products, covering US MBS and CMBS, pan-European floating and fixed rate ABS, and US and European covered bonds.

    The transaction includes the sale of intellectual property in relation to the POINT portfolio analytics tool. Barclays .......

    Job Swaps 17 December 2015

  • Euro secondary chugs along

    Despite wider credit market volatility the European securitisation secondary market is still maintaining its course.

    "We've kept going - there have been a few BWICs, but none of the volatility of broader markets," says one trader. "Flows have been light, but we're still chugging along."

    Overall, the trader adds: "Tone remains constructive and technicals are helping the market. We've got .......

    SCIWire 17 December 2015

  • Euro secondary split

    Activity and price direction in the European securitisation secondary market is currently split in two key sectors.

    "In common with broader credit, overall volumes are low and liquidity is very thin," says one trader. "It's a result of both the time of year and the volatility in global markets."

    However, within securitisation secondary it continues to be a story of .......

    SCIWire 16 December 2015

  • Market supports benchmark change

    A majority of US ABS and CMBS market participants would support switching the pricing benchmark from the swaps curve to US Treasuries, according to a JPMorgan survey. Of the respondents, 61% favour a switch, while 28% advocate sticking with swaps.

    The survey was fairly representative of the ABS investor base, with money managers accounting for 47% of respondents (compared to .......

    News 15 December 2015

  • Right to sue

    Macfarlanes partner Lois Horne and solicitor Alexa Segal exa...

    The Court of Appeal has overturned a decision at first instance that a valuer, Colliers, was liable for a negligent valuation of a commercial property that was collateral for a securitised loan while Quelle - the then biggest mail order company in Germany - was the tenant. In doing so, the Court of Appeal has made comments that an SPV .......

    Talking Point 15 December 2015

  • Euro CRE rates vulnerability 'increasing'

    Continued yield compression is expected next year in the European commercial property market, which should also see declining debt yields. That has been the case in 2015, increasing borrowers' vulnerability to future interest rate increases.

    Yields in prime UK commercial properties are expected to stabilise. Prime yields are already below 2007 peak levels in some European markets, which increases the .......

    News Round-up 15 December 2015

  • Euro secondary hangs on

    European securitisation secondary spreads are mostly hanging on despite increasing broader market volatility but there are some signs of softening.

    In the end, a handful of BWICs emerged yesterday and provided the main focus. However, the highlight, a double-B CLO list, for the most part did not trade. The covers released indicated spread widening in the sector, though the trend .......

    SCIWire 15 December 2015

  • CRE pro moves on

    Linda Gorbenko has joined Arbor Commercial Mortgage as director. In this role, she is responsible for originating commercial financing across the firm's loan product offering, including FHA, Fannie Mae, Freddie Mac, CMBS, bridge, mezzanine and preferred equity.

    Prior to her move, she was an executive director at CIBC, where she originated short- and long-term, fixed and floating rate CMBS. She .......

    Job Swaps 14 December 2015

  • LatAm outlook 'mixed'

    Fitch's outlook for Latin American structured finance in 2016 is mixed across sectors. Stable and positive rating outlooks for the region have dropped to 81% from 90% last year.

    The agency says that consumer ABS continues to be a better performing asset class, as adequate levels of credit enhancement and structural features continue to protect against deteriorating macro conditions. Delinquencies are expected to .......

    News Round-up 14 December 2015

  • SF practice strengthened

    DLA Piper continues to build its financial markets practice with the appointments of Vincent Keaveny, formerly head of structured capital markets and a partner at Baker & McKenzie, and Mark Dwyer, formerly a partner at Slaughter and May. The firm has made other significant hires across Europe this year including Okko Behrends, who joined the team in Germany from Latham .......

    Job Swaps 14 December 2015
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