CMBS

  • 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

  • SFR managers set to merge

    Starwood Waypoint Residential Trust (SWAY) and Colony American Homes (CAH) are set to merge as they combine their SFR operations into a single company. The combined company is expected to own and manage over 30,000 homes and have an aggregate asset value of US$7.7bn at the closing of the transaction.

    The merger, which is expected to close in 1Q16, is estimated to achieve .......

    Job Swaps 22 September 2015

  • StuyTown settlement soon?

    A court hearing last week related to the StuyTown lawsuit was adjourned without resolution, with Morgan Stanley analysts believing a resolution may be near. This could bring forward the timing of a sale.

    The 17 September hearing on whether to dismiss the StuyTown lawsuit in the New York Supreme Court is understood to have been postponed for 30 days to .......

    News Round-up 22 September 2015

  • CRE firm bolsters SF group

    Michael Poe has joined NGKF Capital Markets' debt and structured finance group as senior md. His expertise spans CRE finance, including DUS/agency finance via Fannie Mae and Freddie Mac CMBS execution. Poe's most recent roles include being president of Inland Commercial Mortgage Group and principal at Mid-North Financial Services.

    .......

    Job Swaps 22 September 2015

  • Euro secondary solid

    The European securitisation secondary market is staying solid despite distractions from elsewhere.

    Broader market volatility thanks to the Volkswagen story failed to feed through into the ABS market as autos for the most part held firm yesterday. VCL bonds edged wider by only a couple of points while spreads across the remainder of the auto sector were unchanged with buyers .......

    SCIWire 22 September 2015

  • Euro secondary mixed

    The European securitisation secondary market continues to experience mixed fortunes amid thin liquidity.

    It was another mixed day on Friday with some ABS/MBS sectors, notably Portugal, ending the week softer as broader market tone weakened, while CLOs continued to lack direction. However, relatively strong flows were seen in UK prime and Greek RMBS benefitted from pre-election interest. This morning's open .......

    SCIWire 21 September 2015

  • Liquidations hit LBUBS CMBS

    There were 13 loans with a balance of US$100.7m securitised in LBUBS 2006-C4 liquidated at 53.6% severity last month, according to September remittance data. All 13 loans were under US$20m, but the timing of the liquidations resulted in large cash outflows.

    Barclays analysts note that the liquidations were not a surprise, as they were all listed for auction in the .......

    News Round-up 18 September 2015

  • Euro secondary keeps quiet

    The European securitisation secondary market was once again quiet yesterday and looks likely to stay the same today.

    Secondary spreads remained fairly stable yesterday, though some softening of tone continues in the peripheral space. Volumes remained low in both flow and BWIC trading across the board in advance of the Fed announcement. On a Friday amid slightly weaker broader markets .......

    SCIWire 18 September 2015

  • Mall values 'negative' for Chinese CMBS

    Various pressures on the values of malls in China are credit negative for Chinese CMBS as the situation will make it more difficult for obligors to refinance their loans at maturity, says Moody's. However, as consumption levels in the country demonstrate large room for growth, the negative impact is expected to be moderate.

    "The supply of mall space in China .......

    News Round-up 17 September 2015

  • Euro CMBS defaults inch up

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe increased slightly to 20% at end-August from 19.6% a month previously. The delinquency rate for continental European senior loans decreased to 60.3% from 63.3%, while the rate for UK loans increased slightly to 21.2% from 20.6%. Overall, the senior loan delinquency rate decreased to 48.1% .......

    News Round-up 17 September 2015

  • Defeasance firm expands

    Waterstone Defeasance has opened a new office in Irvine, California, to better meet the needs of its clients in the region. Director Addison McMillan has relocated from the firm's Charlotte office and will focus on business development activities, specifically in connection with CMBS defeasance transactions. He reports to John Felter, md, who will continue to oversee the firm's presence in .......

    Job Swaps 17 September 2015

  • Euro secondary stalemate

    The European securitisation secondary market stalemate is continuing as participants stay on the sidelines apart from for selected assets.

    "Things haven't changed much despite the better tone in global markets," says one trader. "In particular, off-the-run assets, such as CMBS and UK non-conforming, remain difficult to move, though UK non-conforming liquidity has slightly improved on the back of further pricing details .......

    SCIWire 17 September 2015

  • Liquidations lead to CMBS losses

    September remittance shows seven liquidated loans for JPMCC 2006-LDP7. The loans had US$133.7m in total balance and were liquidated at a severity of 63%, with losses wiping out the deal's G and H tranches.

    The largest property to be liquidated was the US$50.7m Shoreview Corporate Center, which was liquidated with a 96% severity. Barclays analysts note that the loan's performance .......

    News 16 September 2015

  • Capital markets group adds three

    Wilmington Trust has expanded its global capital markets structured finance group with three new hires. Rick D'Emilia has been hired as business development officer, Ben Jordan as head of transaction management and Steve O'Neal as asset servicing manager.

    D'Emilia will seek to develop new client relationships, while maintaining existing relationships in the structured finance industry. Prior to joining Wilmington Trust, D'Emilia was .......

    Job Swaps 16 September 2015

  • Euro secondary lull continues

    The European securitisation secondary market's summer lull has morphed into a September one with liquidity still very thin across the board.

    "There's still very little going on other than a few BWICs," says one trader. "For September it's bad and we can't even blame the summer anymore."

    The trader continues: "What little secondary activity there's been has focused around prime .......

    SCIWire 16 September 2015

  • NAIC MBS assumptions 'mixed'

    The NAIC's structured securities group (SSG) last week released recommendations for macroeconomic assumptions, scenarios and probability weightings for use in this year's annual surveillance of insurer-owned CMBS and RMBS. Morgan Stanley analysts believe these are mixed for CMBS but positive for RMBS.

    For CMBS, the probability weights across the four modelled scenarios remain consistent in 2015 with those used in .......

    News 15 September 2015

  • CMBS pay-offs dip

    Trepp reports that the percentage of US CMBS loans paying off on their balloon date slid modestly last month. The August reading stands at 73.8%, less than one point below the July percentage, but above the 12-month moving average of 67.1%.

    By loan count as opposed to balance, 61.7% of loans paid off in August. On this basis, the pay-off .......

    News Round-up 15 September 2015

  • Loan-level data reveals GSE differences

    The loan-level data recently disclosed by Fannie Mae (SCI 4 August) reveals similarities between historical loss severities for liquidated Fannie Mae mortgages and fixed loss severity schedules used in Connecticut Avenue Securities (CAS) risk transfer deals, notes Fitch. However, there are still differences in the loss severities among Fannie Mae and Freddie Mac loans.

    All CAS risk-sharing transactions issued so .......

    News Round-up 15 September 2015

  • Mixed outlooks for Dutch CMBS

    Recoveries from remaining Dutch CMBS 1.0 loans are expected to be limited. Dutch 2.0 loans are expected to perform better and risks are skewed toward prepayment.

    There remains high structural vacancy across the country, with vacancy rates of 13%-24% across the four major cities, according to CBRE. Deutsche Bank analysts note that there is also a significant number of old buildings .......

    News 15 September 2015

  • Euro ABS/MBS keeps BWIC focus

    The European ABS/MBS secondary market is continuing to revolve around BWICs

    "We've been fairly busy with a quite a few BWICs going through last week and this," says one trader. "Most seem to have traded reasonably well even though the macro backdrop remains challenging."

    The trader continues: "As with other markets we've softened a little but paper is still going .......

    SCIWire 15 September 2015

  • CMBS vintage delinquencies vary

    US CMBS delinquencies were nearly unchanged again in August, while rates varied widely by vintage, according to Fitch's latest index results for the sector. Loan delinquencies inched down to 4.52% from 4.53% a month earlier and the dollar balance of late-pays fell US$224m to US$16.9bn last month from US$17.1bn in July.

    Loans from legacy transactions continue to dominate the index, .......

    News Round-up 14 September 2015
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