CMBS

  • CMBS liquidations move back up

    Trepp reports that US CMBS loan liquidation volume rose back above US$1bn after lower summertime totals in July and August. In total, US$1.02bn across 70 loans were liquidated with losses in September, with the majority of the increase due to a jump in average loan size to US$14.56m from US$11.48m and US$9.44m in August and July respectively.

    Seven loans totalling .......

    News Round-up 30 September 2015

  • First significant Freddie K loss

    A US$5.3m loan securitised in FREMF 2011-K12 has been liquidated at a loss severity of 55%. It is the first Freddie K loan to be liquidated at a significant loss.

    The loan was secured by University Courtyard Apartments and was liquidated at a loss of US$2.92m. Class C notes have been written down from US$90.8m to US$87.9m as a result.

    News 30 September 2015

  • Crowdfunded properties transfer to special

    September remits show that three CMBS 2.0 loans totalling US$71m sponsored by the same borrower - Colony Hills - have been transferred to special servicing. According to Morgan Stanley CMBS strategists, the five properties securing these loans received financing via crowdfunding, which is an untested ownership structure in CMBS.

    The affected loans are the US$25.26m Colony Hills - Sandpiper and .......

    News 30 September 2015

  • Euro secondary drifts

    European securitisation secondary spreads are continuing to drift wider.

    "Yesterday was very quiet and today looks to be the same," says one trader. "Clients are definitely sidelined as market sentiment weakens."

    The trader continues: "There are a number of factors impacting sentiment both internal and external to ABS - there's the broader macro picture obviously, combined with our US equivalent .......

    SCIWire 30 September 2015

  • Fund liquidity proposals weighed

    Last week, the US SEC voted to propose tighter liquidity rules for open-end funds, including mutual funds and ETFs. While the rules would lead to several changes, the most significant one for CLO investors could be regarding liquidity buckets.

    The SEC's proposed rules would formalise the 15% limit on illiquid assets which currently serves as a guideline, classify assets into .......

    News 29 September 2015

  • Bridge resolution exceeds valuation

    Hatfield Philips International has negotiated the successful resolution of the Bridge loan, securitised in the Windermere X CMBS, via a highly targeted marketing process for the underlying properties. The gross disposal proceeds from the sale of the portfolio are in excess of €330m - a price that is greater than the latest public valuation - and net proceeds are expected .......

    News Round-up 29 September 2015

  • CMBS bulk sale planned

    CWCapital Asset Management is marketing US$2.12bn of distressed CRE loans and properties, most of which are from the company's specially serviced CMBS portfolio. There are 15 US CMBS transactions affected.

    The assets are slated to be auctioned in early November, although Bank of America Merrill Lynch analysts believe that the auction date may be updated over the next month. The .......

    News 29 September 2015

  • Euro secondary weakens

    The European securitisation secondary market has weakened further on the back of broader market sell-offs and continuing VW concerns.

    "Equity and credit markets are weaker and so are we," says one trader. "In particular the weakness in VW ABS has filtered through into the whole of the low beta space and with that weak it's extremely difficult to get anything .......

    SCIWire 29 September 2015

  • Euro secondary stays thin

    Liquidity remains thin in the European securitisation secondary market.

    Last week ended as anticipated with many players staying on the sidelines as a selling bias prevailed and bid-offers moved ever wider. Even flows in CLOs diminished as the relatively hectic BWIC schedule saw a flurry of DNTs. Overall, away from prime assets, secondary spreads have edged out further.

    Today currently .......

    SCIWire 28 September 2015

  • Model bail-in clause provided

    AFME has published a model clause for contractual recognition of bail-in. It provides model wording designed to assist banks in complying with obligations under the Article 55 of the EU's Bank Recovery and Resolution Directive (BRRD).

    The directive requires banks to insert clauses in contracts to give effect to bail-in in a very broad range of liabilities governed by non-EU .......

    News Round-up 25 September 2015

  • Colony adds finance chief

    Colony American Finance (CAF) has hired Christopher Hoeffel as cfo. He arrives from Investcorp, where he was head of real estate debt investments, including three high-yield debt funds.

    Hoeffel has also held senior roles at JPMorgan, Bear Stearns, Eastdil Realty and Walker & Dunlop. His duties have ranged from real estate investment banking to originating, underwriting and selling CMBS.

    CAF provides acquisition financing and .......

    Job Swaps 25 September 2015

  • LL, MASB structures could limit ratings

    Multi-borrower large loan (LL) and multi-asset/single borrower (MASB) CMBS may be structured in a way which raises risks for senior bondholders, says Moody's. The rating agency believes these structural shortcomings must be offset by higher credit enhancement to ensure sufficient credit quality to achieve the highest ratings.

    Credit negative structures include non-senior sequential payment priority and release provisions that do .......

    News Round-up 25 September 2015

  • Euro ABS/MBS sidelined

    Investors are for the most part staying on the sidelines in the European ABS/MBS secondary market.

    Sellers are outnumbering buyers in most sectors as broader market volatility is now heavily impacting ABS. Inevitably VW paper is taking the biggest hit at the moment and that is causing reticence in the rest of the European auto sector. Instead, buying is continuing .......

    SCIWire 25 September 2015

  • Euro market looks liquid

    European ABS BWIC activity was high over the summer, while the traded percentage also surprised to the upside. From this perspective, at least, European liquidity appears healthy, with UK RMBS proving particularly liquid.

    Over the 16-week period from 1 June until the end of last week, JPMorgan analysts counted €3.6bn of bonds at current face value - or €6.9bn in .......

    News 24 September 2015

  • Euro secondary still selective

    The European securitisation secondary market continues to see trading across the board, but only on selected names.

    Secondary spreads closed unchanged yesterday on, once again, patchy activity on- and off-BWIC. Most sectors saw some action, but prime assets remain the strongest performer. Autos were much quieter than the previous session with only the German programmes edging wider.

    There are currently .......

    SCIWire 24 September 2015

  • Bs lose out in hope note refi

    The One & Two Prudential Plaza loan has been refinanced in such a way as to avoid paying proceeds to the modified B-note. Barclays CMBS analysts describe it as "the worst case of hope note strategic refinancing to date".

    The CMBS loan paid off last month with a full recovery and deferred interest paid to the senior US$336m A-note, while .......

    News 23 September 2015

  • P2P lender taps CMBS vet

    Gary Bechtel has been appointed as president of Money360. He will be responsible for expanding the firm's lending programmes, building out its origination and loan processing capabilities, and interacting with institutional investors.

    Bechtel joins the CRE marketplace lender from Business Partners, where he was chief lending officer. He has also held senior roles at a number of other firms, including .......

    Job Swaps 23 September 2015

  • Multifamily debt mounts

    Outstanding US multifamily mortgage debt now exceeds US$1trn and is growing at almost 10% a year, according to the Mortgage Bankers Association. The level increased by US$38.5bn in 2Q15, a 1.4% increase over the last quarter, as three of the four major investor groups increased their holdings.

    The four major investor groups are: bank and thrift; CMBS, CDO and other .......

    News Round-up 23 September 2015

  • Euro secondary picks up

    The European securitisation secondary market is seeing a pick-up in activity.

    Amid a spike in broader market volatility and the evolving Volkswagen story, secondary activity and client enquiries grew significantly from recent levels yesterday. Inevitably attention was focused around auto ABS with a flurry of bonds across European jurisdictions offered for sale, most traded but transparency on pricing levels was .......

    SCIWire 23 September 2015

  • US CRE market 'like 2007'

    Market participants can ill afford to forget how quickly US CRE performance can change, warns Fitch. The rating agency notes that the market is beginning to resemble 2007 in several key ways, although differences do exist.

    While weakening loan characteristics, declining underwriting quality and concerns about originator, banker and rating agency competition are not new concerns for investors, in this cycle .......

    News Round-up 22 September 2015

  • CMBS loan use queried

    Following reports that proceeds from a mortgage loan securitised in Velocity Commercial Capital 2015-1 were misused by the related borrower to purchase a home as a primary residence, Kroll Bond Rating Agency has undertaken a thorough review of Velocity's credit policies, underwriting guideline, sample loan documentation and loan sale representations. As a result of this review, the rating agency is .......

    News Round-up 22 September 2015
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