CMBS

  • Euro secondary unmoved

    Despite initial post-ECB softening on Friday across broader markets, the European securitisation secondary market remains unmoved.

    Liquidity remains thin across securitisation secondary and that in part helped to ensure spreads closed Friday unchanged. Nevertheless, tone remains positive and pockets of buying activity continue to be seen.

    Where those pockets appear prices are even edging slightly up. Once again, prime assets .......

    SCIWire 7 December 2015

  • US CMBS credit profile 'to decline'

    The overall credit profile of conduit and fusion US CMBS will decline to match those of deals issued from mid-2006 to early 2007, says Moody's. Leverage as measured by Moody's LTV (MLTV) already tops pre-crisis peak levels, but DSCRs remain high - albeit rising interest rates in 2016 and beyond could reduce that cushion.

    "With commercial property prices exceeding pre-crisis peaks .......

    News Round-up 4 December 2015

  • CMBS losses inch down

    The weighted average loss severity for all US CMBS loans liquidated at a loss decreased from 42.1% in 2Q15 to 42% in 3Q15, says Moody's. Excluding loans with losses of less than 2%, the weighted average loss severity was unchanged.

    "Historical losses for all post-2000 vintages increased during 3Q15, while total cumulative losses rose 4bp from the prior quarter, to .......

    News Round-up 4 December 2015

  • Euro secondary holds up

    The European securitisation secondary market is holding up amid weakness in broader credit following the ECB press conference yesterday.

    Secondary spreads saw little ECB impact yesterday - with the changes to the ABSPP already factored in, most sectors closed the day unchanged. Flows were patchy and name specific with prime RMBS and autos once more at the forefront, while peripherals .......

    SCIWire 4 December 2015

  • Euro secondary keeps busy

    The upswing in activity in the European securitisation secondary market is continuing.

    Yesterday saw a pick-up in trading across the board both on- and off-BWIC. Notably, prime assets returned to form and a strong buying bias, in Dutch RMBS in particular, saw spreads in both ABS and MBS generally tighten.

    Meanwhile, Portuguese paper continued to outperform in peripherals and ended the day slightly .......

    SCIWire 3 December 2015

  • Third straight decline for delinquencies

    The Trepp US CMBS delinquency rate declined for a third straight month, falling by 10bp in November to 5.13%. The rate is now 62bp lower year-to-date and 67bp lower than the year-ago level.

    Slightly less than US$1bn in loans became newly delinquent last month, which put 19bp of upward pressure on the delinquency rate. About US$450m in loans were cured, .......

    News Round-up 2 December 2015

  • EMEA ratings transition positive

    EMEA structured finance securities continued to experience a decrease in downgrade activity and an increase in upgrade activity in 1H15, compared to 2013, according to Moody's latest transition study for the region. The 12-month downgrade rate for EMEA structured finance decreased from 16% to 4.8%, while the 12-month upgrade rate rose from 6.9% to 37.8% over the same period.

    The .......

    News Round-up 2 December 2015

  • TPG acquires property group

    TPG Real Estate has closed its acquisition of TriGranit, including a portfolio of office and retail assets predominantly located in Poland. The acquisition will build on TPG's existing central European real estate platform as the firm pursues a full spectrum of real estate activities.

    "The new TriGranit will manage a much wider scope of activities than before. As an integrated real estate .......

    Job Swaps 2 December 2015

  • Euro secondary picking up

    Activity in the European securitisation secondary market is starting to pick up.

    "Yesterday was very quiet again with not a lot of flows or BWICs," says one trader. "However, it appears to be picking up today and the BWIC calendar is building for the rest of the week, though involving a lot of off-the-run securities."

    The most active sector yesterday was .......

    SCIWire 2 December 2015

  • European outlook improves

    European structured finance will benefit next year from an improved macroeconomic landscape, consumer confidence and a more competitive lending environment, which will boost asset performance, says Fitch. The rating agency has changed its asset performance outlook to stable/positive for 2016.

    Asset performance outlooks for several individual markets have improved as GDP growth and lenders' greater appetite to underwrite loans to .......

    News Round-up 1 December 2015

  • Asian delinquency trends to diverge

    Moody's forecasts that delinquency rates for structured assets in Asia (ex-Japan) will diverge in 2016. China and Singapore are generally expected to show rising delinquency trends, while performance in India and Korea should exhibit strength.

    "China's gradual economic slowdown will trigger a slight rise in delinquencies from current low levels across a range of asset classes in the country, while .......

    News Round-up 1 December 2015

  • Windermere clarity requested

    Hayfin Capital Management has made a request to the English High Court to decide how interest should have been calculated on the payment of class X notes in Windermere VII CMBS. The bonds were structured to continue paying following the default of the underlying loans.

    Hayfin has also asked the court whether an event of default occurred on the class B notes of .......

    News Round-up 27 November 2015

  • Euro secondary slumbers

    The European securitisation secondary market is taking it easy through the US public holiday but market tone is staying strong.

    Despite low volumes yesterday spreads remained firm to slightly tighter across the board. UK non-conforming and buy-to-let bonds are still the most active areas and remain better bid, primarily from the Street. At the same time, peripherals continue to generate .......

    SCIWire 27 November 2015

  • Euro secondary activity fades

    Activity in the European securitisation secondary market is fading away thanks to the US public holiday, but sentiment remains positive.

    "We're quietening down now with Thanksgiving today," says one trader. "Also a lot of people are being distracted away looking at primary and the BMW deal in particular."

    Secondary tone appears to remain strong however. "UK non-conforming and buy-to-let seniors .......

    SCIWire 26 November 2015

  • Multifamily attracting investors

    The CRE multifamily sector is seeing increased investment as underwriting standards loosen for multifamily loans, reports Trepp. Market indicators suggest that the rebound of the economy has prompted lenders to take on more risk.

    "Coming out of the recession, multifamily CRE garnered a lot of attention, capital and development," says Joe McBride, research associate at Trepp. "Caps on GSE lending volume, maturing loans .......

    News Round-up 25 November 2015

  • Bank's LatAm exit raises concerns

    Deutsche Bank's decision to close its operations in Argentina and Mexico is credit negative for the Argentine and Mexican securitisations for which it acts as trustee or common representative, says Moody's. Deutsche Bank Argentina acts as trustee in 36 securitisations, while Deutsche Bank México acts as common representative in 1,300 transactions.

    The bank's decision to close its operations in Argentina .......

    News Round-up 25 November 2015

  • Euro secondary stays strong

    Despite weaker global markets and reduced volumes the European securitisation secondary market is still showing some strong signs.

    "Yesterday was a bit quieter with flows minimal across most sectors as a result of weakness in broader credit thanks to increasing global political tension," says one trader. "However, we saw some strong activity and prints around BWICs."

    The trader continues: "Italian .......

    SCIWire 25 November 2015

  • Euro secondary UK focused

    The heightened focus on UK RMBS is continuing in the European securitisation secondary market.

    "Overall, secondary is somewhat quiet," says one trader. "With Thanksgiving coming, today will be another day to get a few things done but away from UK RMBS there's not much broad-based trading."

    The trader continues: "Both UK prime and buy-to let were very busy yesterday. It's .......

    SCIWire 24 November 2015

  • Post-issuance changes eyed

    Fitch reports that US borrowers are increasingly seeking to change the terms of their CMBS loan shortly after securitisation. The agency says that some of the proposed changes - had they been known prior to issuance - would have resulted in the loan being modelled differently and often more conservatively.

    Fitch has seen approximately 15 requests this year for rating .......

    News Round-up 23 November 2015

  • Euro secondary undented

    A typically quiet Friday has failed to dent the positive tone in the European securitisation secondary market.

    After a pick-up in activity earlier in the week, Friday was typically quiet across most sectors. Nevertheless, market sentiment remained strong and spreads closed the day broadly unchanged.

    Continued trading around the Granite redemption means UK prime remains the main focus. Friday again .......

    SCIWire 23 November 2015

  • New wave

    Next CMBS modification wave 'unlike predecessors'

    US CMBS maturity modifications have been modest this year, but the pace is set to pick up in 2016. Moreover, not only the pace of the mods - but also the manner of them - is set to change.

    With US$83bn of performing conduit loans due to mature in 2016, Citi CMBS analysts expect 21% to face difficulties refinancing. Many of the .......

    News Analysis 20 November 2015
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