CMBS

  • Ty Warner defeasance expected

    The pending defeasance of the Ty Warner Hotel portfolio in MSC 2012-C4 has prompted Kroll Bond Rating Agency to place its ratings on the class B and C certificates to watch upgrade. The portfolio is the second largest loan in the transaction, comprising 9.1% of the pool.

    KeyBank, the master servicer, anticipates full defeasance of the loan on 30 October. The loan's .......

    News Round-up 21 October 2015

  • Underperforming retail asset warning

    The US CMBS retail subsector should continue to stabilise through the end of the year, says Fitch. However, already underperforming assets in secondary and tertiary markets could lose momentum in 2016 if retailers face a particularly weak holiday season.

    Sales in September were up 2.4% year-over-year and Fitch expects retail holiday sales - excluding autos - to be up 3%-4%, versus 4.1% .......

    News Round-up 21 October 2015

  • Euro secondary retains BWIC focus

    BWICs are continuing to dominate the European securitisation secondary market.

    Thanks in part to a relatively quiet primary market, secondary auctions saw increased interest yesterday. Most bonds in for the bid traded in line with expectations and tone across most sectors firmed a little. The notable exception is CLOs where any potential rally is being hampered by strong primary and secondary supply.

    SCIWire 21 October 2015

  • CMBS workouts exceed transfers

    With four European CMBS loans worked out last quarter, the pace of workouts continues to exceed new special servicing transfers, according to Moody's latest monthly update on the sector. A total of 114 loans were in special servicing at end-September, securitised within 45 large multi-borrower and 40 single-borrower CMBS transactions monitored by the agency.

    As well as the workouts, another .......

    News Round-up 20 October 2015

  • Euro secondary picking up?

    After a quiet start to the week, the European securitisation secondary market looks to be picking up.

    "Yesterday was very quiet both on- and off-BWIC," says one trader. "The highlight was probably the deep mezz UK non-conforming auction, which on the face of it was pretty interesting and saw strong client interest. But as is the case with many BWICs .......

    SCIWire 20 October 2015

  • Moving pieces

    CMBS spread widening spurs B-piece reassessment

    Widening US CMBS spreads have accompanied looming risk retention requirements in reshaping the investment landscape for CMBS B-piece buyers. While short-term investors could be pushed out of the space, single-asset/single-borrower (SASB) deals could provide new opportunities.

    A growing US CMBS pipeline this month is likely to precipitate a steepening credit curve, following US$11bn of issuance in September. Spreads have subsequently .......

    News Analysis 20 October 2015

  • Retail pay-off exposure highlighted

    Approximately US$3.7bn within Fitch's US CMBS loan universe is still scheduled to mature through the remainder of 2015, with an additional US$47bn scheduled in 2016 and US$65bn in 2017. Collateral backed by retail properties accounts for a large proportion of loans due to mature, as well as loans defaulting at their 2015 maturities.

    As of October 2015, approximately US$2.4bn, US$7.1bn .......

    News Round-up 19 October 2015

  • Euro secondary patchy

    Activity in the European securitisation secondary market remains patchy.

    Friday saw a slight dip in volumes and liquidity remains thin overall. Activity continues to be patchy across sectors and selective within them. However, spreads remained broadly stable amid broader market positivity.

    Prime assets and UK non-conforming continue to attract the most attention and look strongest. Meanwhile, peripherals and CLOs are .......

    SCIWire 19 October 2015

  • EMEA maturity defaults stable

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe remained stable at 20%, as at end-September. Overall, the senior loan delinquency rate decreased to 47.1% from 48.1% during the month. The delinquency rate for continental European senior loans decreased to 59.7% from 60.3%, while the rate for UK loans decreased to 18.8% from 21.2%.

    .......

    News Round-up 16 October 2015

  • Reporting requirements reflected

    CREFC has adopted interim guidance for compliance with the US SEC's expanded reporting requirements in Form 10-D with regard to delinquent loans. This guidance is reflected in the latest iteration of the CREFC Investor Reporting Package (IRP) Version 7.2.

    Effective from 31 October, IRP Version 7.2 will require a new report to be produced that will fall under the umbrella .......

    News Round-up 16 October 2015

  • Euro secondary unchanged

    The European securitisation secondary market continues to see light flows and only pockets of activity.

    Yesterday saw another day of broadly directionless trading and limited activity away from BWICs. Consequently, spreads across the board were unchanged at the close.

    Once again, UK non-conforming was one of the few sectors to see above average activity on the day and pricing levels .......

    SCIWire 15 October 2015

  • Cap rates projected

    Given investor concern over the impact of higher interest rates on capitalisation rates and CRE values, S&P has developed a cap rate simulation over a 10-year horizon for the five major property types. The tool utilises future interest rate projections from the agency's term structure model and a regression that was created from historical CMBS loan data.

    "In the current .......

    News Round-up 14 October 2015

  • Euro secondary consolidates

    Yesterday was primarily about consolidating recent gains in the European securitisation secondary market, though pockets of activity remain.

    "After a few days of market strength, yesterday saw some stabilisation," says one trader. "At the same time, away from BWICs flows reduced again."

    However, there continue to be strong pockets of activity. "We again saw activity in autos with DRVON bid .......

    SCIWire 14 October 2015

  • Euro ABS/MBS keeps impetus

    Despite a quiet day yesterday thanks to the US holiday, the European ABS/MBS secondary market is still heading in the right direction.

    "We're seeing more flows and there's generally more impetus to get things done," says one trader. "Stability in broader markets for the last six or seven days, though they have opened weaker this morning, is bringing people back .......

    SCIWire 13 October 2015

  • Retail late-pays trend up

    US CMBS delinquencies fell last month, despite retail late-pays trending slightly higher, according to Fitch's latest index results for the sector. Loan delinquencies dropped by 6bp in September to 4.46% from 4.52% a month earlier. The dollar balance of late-pays fell by US$87m to US$16.8bn from US$16.9bn in August.

    Resolutions of US$688m in September edged out new delinquencies of US$624m. .......

    News Round-up 12 October 2015

  • Cross-asset conviction

    Renaud Champion, head of credit strategies for La Fran&#...

    Q: How and when did La Française Global Investment Solutions (LFGIS) become involved in the securitisation market?
    A:     LFGIS is the solutions business line of the La Française Group. LFGIS was established in late 2012 and is 35% owned by its founders - Sofiene Haj Taieb and Arnaud Sarfati - and key personnel; La Française is .......

    The Structured Credit Interview 12 October 2015

  • Euro secondary settled

    The European securitisation secondary market is continuing in the settled pattern seen of late.

    There were no surprises on Friday as a relatively quieter day, though flows continue to improve slowly, saw spreads close broadly unchanged overall. Today looks set to follow a similarly settled pattern especially given the US public holiday.

    Peripherals continue to benefit the most from buying .......

    SCIWire 12 October 2015

  • German multifamily stability expected

    German multifamily housing (MFH) transactions should continue their trend of stable to positive collateral performance over the coming quarters, says Fitch. Rental levels have increased while vacancy rates are stable and cost ratios over the last 12 months have been within expectations.

    The rating agency expects the MFH sector to also continue to consolidate, following a series of mergers over .......

    News Round-up 9 October 2015

  • CMBS pay-offs slide

    The percentage of US CMBS loans paying off on their balloon date slid sharply last to 60.4%, according to Trepp, more than 13 points below the August percentage. The rate is also below the 12-month moving average of 67.7%.

    By loan count as opposed to balance, 65.3% of loans paid off in September. On this basis, the pay-off rate was .......

    News Round-up 9 October 2015

  • Euro secondary stays on track

    Ever-improving broader markets are driving increasingly positive sentiment in the European securitisation secondary market and its revival over the past few days remains on track.

    Yesterday again saw an uptick in overall activity though flows were slightly down as the heavier BWIC calendar took precedence. There was buying interest across the board, albeit still restricted to selected names in each .......

    SCIWire 9 October 2015

  • FHSL 2006-1 resolution eyed

    Both the RPI and interest rate swap providers for the Fairhold Securitisation CMBS are set to exercise their rights to terminate the hedges. A period of lengthy discussion is now expected between the borrower (ultimately the Tchenguiz brothers), bondholders and swap counterparties with a view to a resolution.

    At the last reporting date in May, the aggregated mark-to-market of the .......

    News Round-up 9 October 2015
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