CMBS

  • 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

  • US, European issuance forecast

    S&P projects that US securitisation issuance levels for 2015 and 2016 will experience moderate year-over-year growth, but will not reach the pre-crisis levels of 2006 and 2007. The agency forecasts issuance of US$474bn and US$537bn in 2015 and 2016 respectively, up from a total of US$462bn in 2014.

    "Although many securitisation products are benefiting from an improving economy and are likely to see increased issuance, .......

    News Round-up 14 September 2015

  • Euro secondary stays stable

    The European securitisation secondary market closed out Friday fairly quietly but with spreads still appearing stable after a mixed week.

    Transparency was hampered by a higher than normal proportion of DNTs or colour not released on BWICs, but overall market tone remains positive and secondary spreads are broadly unchanged at this morning's open. CLOs and prime ABS/MBS continue to be the main .......

    SCIWire 14 September 2015

  • CMBS loans enter special servicing

    The US$61.8m Phoenix Airport Marriott loan has returned to special servicing, having previously gone into special servicing last year (see SCI's CMBS loan events database). The loan is securitised in BACM 2006-3.

    The Phoenix Airport Marriott loan has enjoyed improved performance. It is now covering debt service - DSCR NOI is 1.21x in the 12 months .......

    News 11 September 2015

  • Servicer integration announced

    Värde Partners has acquired Trimont Real Estate Advisors as it plans to integrate operations between Trimont and subsidiary FirstCity Financial (FCSC). Värde will create a new Dallas office for Trimont as part of the process, and will retain the brand name for the acquired firm.

    Under the agreement, Värde will be majority owners while Trimont will hold a minority investment .......

    Job Swaps 11 September 2015

  • SFR servicing scarcity underlined

    The limited number of special servicers available to administer US single-family rental (SFR) properties in the event that the operator defaults is a risk to SFR securitisations, says Moody's. The limited near-term incentive for other servicers to enter the market presents an added issue.

    There are 22 SFR transactions outstanding with two entities, Midland Loan Services and Situs Holdings, assigned .......

    News Round-up 10 September 2015

  • CRE outlook 'tempered'

    Moody's is advocating caution for the European CRE sector against the backdrop of a nascent recovery on the continent. The agency warns of potential headwinds in the form of market volatility, interest rate hikes and rising development costs.

    Following the rise in CRE activity, Moody's has rated €1.5bn of European CMBS this year so far. "Commercial property companies have also .......

    News Round-up 10 September 2015

  • Real estate legal pro tapped

    Allen & Overy has appointed Lucy Oddy to its real estate finance group. Joining from Latham & Watkins, Oddy is a structured finance specialist who advises on a broad range of transactions, with a particular focus on CMBS and RMBS.

    Oddy's clients include financial institutions, funds and private equity firms. She focuses on employing new funding structures for real estate assets across .......

    Job Swaps 9 September 2015

  • CRT rating upgrades begin

    Moody's is the first rating agency to upgrade CRT bonds after taking action on CAS 2014-C01 M1, STACR 2013-DN2 M1 and both STACR 2014-DN1 M1 and M2. Upgrades for a wave of newer deals are also anticipated.

    The bonds were upgraded this month as a result of recent performance of the underlying pools and because of updated loss assumptions and .......

    News Round-up 4 September 2015

  • Euro secondary ticks up

    Broader market improvement on the back of the message from the ECB and the Chinese holiday has extended into the European securitisation secondary market with a slight uptick in activity and some improvement in pricing levels.

    Flows continued to revolve around the usual suspects with sterling-denominated prime and peripherals, especially Italy, benefitting the most. At the same time, the CLOs .......

    SCIWire 4 September 2015

  • CMBS barbelling rises

    US CMBS deals are increasingly including meaningful exposures to lower leverage loans that skew a pool's overall credit metrics. While investment grade exposure is also growing, there has been a sevenfold increase in high leverage loans since 2013, leading to increased barbelling.

    Kroll Bond Rating Agency examined the 101 conduits it rates to identify which underlying loans have credit characteristics consistent .......

    News Round-up 3 September 2015

  • Euro secondary still slow

    Despite hopes for a post-August spike, volumes in the European securitisation secondary market are still only growing slowly.

    "It's still pretty quiet and could take a while to really get going," says one trader. "This week has been slower than we hoped as broader market volatility continues and people are also waiting on the ECB today and the growing primary schedule .......

    SCIWire 3 September 2015

  • Ground lease venture formed

    Anika Equities has partnered with David Eyzenberg, principal at Avison Young, to form a subsidiary called Anika Equities GLF. The new entity will create and purchase ground leased fee positions.

    The aim is to acquire the ground under select quality-stabilised commercial real estate assets valued at US$15m and over at a premium cap rate. The ground is then leased back .......

    Job Swaps 2 September 2015

  • CMBS properties acquired

    CALCAP Advisors has acquired two Las Vegas apartment properties in an Auction.com sale. The seller for both properties was an LNR Partners entity, which purchased the assets via a CMBS foreclosure in January.

    The two properties are El Pueblo de Los Arboles Apartments and El Pueblo de Las Brisas Apartments, which were acquired for US$9.77m and US$4.75m respectively. The purchase .......

    News Round-up 2 September 2015

  • Japanese CMBS RFC issued

    Moody's is requesting comment on proposed enhancements to its approach to rating Japanese large loan and single-asset/single-borrower (SASB) CMBS, with the proposals likely to result in rating upgrades. The rating agency sought comment on similar CMBS in other jurisdictions last month (SCI 7 August).

    The rating agency's proposals are broadly the same as its proposed approach to rating large loan and .......

    News Round-up 2 September 2015

  • Retail therapy

    Store closures spur CMBS reassessment

    US CMBS players are keeping a cautious eye on struggling retailers with exposure to the asset class. Against this backdrop, asset diversity and the ability of loans to refinance are key differentiators.

    "The retail exposure in US CMBS is certainly plentiful," says Manus Clancy, senior md at Trepp. "The major worries currently lie with Sears and K-Mart, particularly where they .......

    News Analysis 2 September 2015

  • Euro ABS/MBS struggles back to life

    The European ABS/MBS market is slowly struggling back to life after the summer lull.

    Secondary market tone remains generally weaker and liquidity is still thin across the board. Euro-denominated prime assets continue to be the main focus for the market, but some buying interest has returned for peripheral paper, particularly Italian and Portuguese bonds.

    There are four BWICs on the .......

    SCIWire 2 September 2015

  • CMBS delinquencies, losses rise

    The Trepp US CMBS delinquency rate continued its summer trend of oscillation and inched up slightly in August. The delinquency rate for US CRE loans in CMBS moved up 3bp in August to 5.45%, undoing July's 3bp  improvement. The rate is now 65bp lower than the year-ago level and 30bp lower year-to-date.

    In August, US$1.3bn in loans became newly delinquent, which .......

    News Round-up 1 September 2015

  • Earliest peak vintage paying down

    The earliest of the peak US CMBS vintages is coming to the end of its ten-year life. Fitch rated 34 conduit transactions totalling US$79bn in 2005 and the transactions have so far paid down approximately 15% since issuance, including 4% in realised losses.

    Fitch's expected losses for this vintage total 7.6% of the original balance. Much of the remaining expected .......

    News Round-up 1 September 2015

  • A&P sell-off underway

    A&P is set to auction its remaining 153 stores in October after the bankrupt grocer received bids for 118 of its 296 stores. Bids have come in from competitors Albertsons, Royal Ahold and Key Food.

    A&P initially announced in July that 25 stores would close while the company reorganised (see SCI's CMBS loan events database). However, reports suggest .......

    News 28 August 2015

  • Term default risk 'not a concern'

    Morgan Stanley's latest review of CMBS 2.0 remittance reports shows a wide variety of activity. This month the first-ever 2015-vintage loans turned delinquent, a borrower requested an A/B-note modification and multiple loans were watchlisted as a result of vacancies.

    In total, eight loans with a balance of US$69.5m became delinquent in August, including the US$23.9m La Gran Plaza (securitised in .......

    News 28 August 2015
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