CMBS

  • CMBS borrower bunching considered

    Blackstone is the ultimate borrower for a full third of floating rate European CMBS issuance from 2014 and 2015. When adding the second-largest borrower - IVG - concentration increases to 50%.

    The third-largest borrower is the consortium behind London's Westfield Stratford shopping centre, which consists of Westfield, CPPIB and AIG. When Blackstone, IVG and the Westfield consortium are considered together, .......

    News 10 November 2015

  • Split triple-B tranches seen

    The latest US conduit CMBS to print - the US$960.9m COMM 2015-LC23 - has a structural feature not seen since 2012. Rated by Fitch and Kroll, the US$28.83m D tranche was rated BBB/BBB+ (with 10.75% subordination), while the US$24.02m E tranche was rated triple-B minus (8.25%).

    Transactions featuring both triple-B plus and triple-B minus tranches were common in 2010-2012, when .......

    News Round-up 10 November 2015

  • Euro secondary stays positive

    Market tone remains broadly positive in the European securitisation secondary market.

    "Tone remains pretty good despite a weaker day yesterday in broader credit markets," says one trader. "Overall, secondary spreads aren't gapping in but continue to grind tighter in many sectors."

    The trader continues: "We saw quite a bit of activity in UK non-conforming yesterday and senior buy-to-let in particular .......

    SCIWire 10 November 2015

  • Office drives delinquency drop

    US CMBS delinquencies fell by 9bp in October to 4.37%, from 4.46% a month earlier, according to Fitch's latest index results for the sector. The dollar balance of late-pays fell by US$348m to US$16.4bn during the month.

    Resolutions of US$833m in October exceeded new delinquencies of US$504m. Fitch-rated new issuance volume of US$5.2bn across five transactions was outpaced by US$5.8bn .......

    News Round-up 9 November 2015

  • Euro secondary quiet

    The European securitisation secondary market closed last week quietly and looks set to start today in the same vein.

    Secondary volumes dropped again on Friday as the primary market drew investor attention and secondary spreads for the most part were unchanged despite continued broader market positivity. A few sectors did however see some uptick in prices - notably CMBS and .......

    SCIWire 9 November 2015

  • Fresh & Easy exposure gauged

    About US$209.2m in CMBS exposures across 16 loans could be affected by Fresh & Easy's latest bankruptcy filing, reports Morningstar. However, the agency says that the impact would be limited to five loans with balances of less than US$7m.

    These loans have the greatest risk of going delinquent because the grocer occupies at least 48% of the leasable space. Conversely, .......

    News Round-up 6 November 2015

  • Amherst welcomes mortgage team

    Standish Mellon Asset Management has strengthened ties with subsidiary Amherst Capital Management by moving its mortgage team over to the firm. The team will remain in Boston and continue to utilise the same investment processes for Standish clients.

    However, it will gain access to Amherst Capital's real estate data set and analytical tools to provide additional advantages to its work .......

    Job Swaps 6 November 2015

  • CMBS liquidations dip again

    US CMBS loan dispositions have dipped back below the US$1bn mark to reach a liquidation volume similar to the end of the summer, says Trepp. There were 54 loans totalling US$868.9m liquidated with losses in October.

    Although total disposition volume declined, average loan size has continued to trend upward. From US$11.48m in August and US$14.46m in September, average size reached .......

    News Round-up 6 November 2015

  • Euro secondary firms up

    Tone in the European securitisation secondary market continues to firm up.

    Despite the large number of BWICs yesterday, pricing levels held up across the majority of sectors and the majority of bonds in for the bid traded in line with expectations. CMBS, peripherals and UK non-conforming continue to improve, while UK and Dutch prime remain solid. Auto ABS were the .......

    SCIWire 6 November 2015

  • Euro secondary improves

    Yesterday saw further improvement in the European securitisation secondary market, but it is still yet to take off.

    "We've got what we wanted at last - stability in broader markets - but our space isn't picking up massively," says one trader. "Tone is generally better and we are seeing a pick-up in high beta paper in particular."

    The trader continues: "CMBS .......

    SCIWire 5 November 2015

  • CMBS delinquency drop continues

    Trepp's US CMBS delinquency rate in October fell by 5bp, marking the ninth month of improvement in the past year. The next big move for the delinquency rate could come as early as November, with a forthcoming resolution expected on the US$3bn Stuyvesant Town/Peter Cooper Village loan (see SCI's CMBS loan events database).

    The loan defaulted in 2009 .......

    News Round-up 4 November 2015

  • Loan misuse confirmed, refinanced

    Further details have emerged regarding a mortgage loan securitised in Velocity Commercial Capital 2015-1, which was thought to have been misused by the borrower (SCI 22 September). That loan has now been repaid in full.

    The borrower was contacted on Velocity's behalf and confirmed that it was indeed occupying the property as a primary residence, in violation of the loan .......

    News Round-up 4 November 2015

  • Rating agency targets expansion

    A partnership has been formed between Kroll Bond Rating Agency, the Kroll family and Wharf Street, effective immediately. It will provide permanent capital for the rating agency to grow.

    Kroll Bond Rating Agency says it will use the additional capital to develop other sectors beyond the structured finance, public finance and financial institution spaces. It will particularly look to accelerate .......

    Job Swaps 4 November 2015

  • Euro secondary strengthens

    The positive tone in the European securitisation secondary market continues to build.

    "Overall, we're strengthening, but still lagging the positive tone in broader markets," says one trader. "We're seeing something of a pick-up and flows are better especially in some of the recently quiet sectors."

    The trader continues: "We're not seeing much in prime, but Portuguese RMBS and UK non-conforming .......

    SCIWire 4 November 2015

  • Regulation threatens market viability

    Banks' market making ability in securitised products is set to be severely affected by the Basel Committee's proposed Fundamental Review of the Trading Book (FRTB). JPMorgan ABS analysts have joined a growing chorus (SCI 15 June) in warning that FRTB would make secondary trading in securitised products unprofitable.

    The final FRTB ruling is expected to be published next month, before .......

    News 3 November 2015

  • Automated lender launches

    Aries Capital has launched an automated mortgage banking platform that specialises in non-recourse, permanent and bridge loans from US$3m to US$75m for hotel, multifamily, self-storage, retail and other commercial properties in the US. Headquartered in Chicago, LendingCap Commercial is headed by Neil Freeman, Aries chairman and ceo, and Rushi Shah, Aries svp and president of LendingCap.

    LendingCap's originators are expected .......

    Job Swaps 3 November 2015

  • Euro secondary refocuses

    After a couple of quiet sessions the European securitisation secondary market looks set to refocus in the days ahead.

    "After a very busy week last week on our side at least it was pretty quiet yesterday and one or two data points were enough to distract the market," says one trader. "However, there are a couple of big BWICs today, .......

    SCIWire 3 November 2015

  • CMBS criteria updated

    Moody's has updated its methodology for rating multi-borrower large loan and single-asset/single-borrower (LL/SASB) CMBS. The changes incorporate previous proposals from two request for comments that the agency sent out in August and September (SCI passim).

    The main changes to the methodology include updated LTV targets for US, Canadian and Japanese LL/SASB CMBS. The agency has also refined adjustments that it makes to .......

    News Round-up 2 November 2015

  • CMBS defaults dip

    Fitch's US CMBS cumulative loan default rate for fixed-rate CMBS fell slightly to 13.2%, as of 3Q15, from 13.3% at end-2Q15. The agency suggests this is due to fewer new defaults and strong new issuance levels.

    In 3Q15, 38 loans totalling US$779.1m were newly defaulted during their term. This represents a decrease from 3Q14, when 77 loans totalling US$1.11bn defaulted. .......

    News Round-up 2 November 2015

  • Euro secondary rolls on

    The bulk of the European securitisation secondary market took month end in its stride and continues to roll on at a solid if unremarkable pace.

    Friday was quieter than earlier in the week, but saw relatively healthy flows for month-end. Overall, tone remained positive and spreads were little moved.

    The main area of buying focus was once again UK prime .......

    SCIWire 2 November 2015

  • Drug store deal CMBS impact weighed

    Walgreens Boots Alliance is set to acquire Rite Aid for US$17.2bn, in a move which will impact almost US$10bn of CMBS conduit loans. There is slightly more 'high risk' exposure in legacy CMBS than in 2.0 deals.

    Morgan Stanley analysts note that there are an estimated 12,674 Walgreens and Rite Aid stores across the US, with 3,248 of these located .......

    News 30 October 2015
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