CMBS

  • 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

  • Euro secondary lacks conviction

    Despite an improving overall tone, the European securitisation secondary market continues to lack conviction.

    Even though broader market concerns are shelved for now yesterday was extremely quiet thanks to month-end and the summer lull. What small pockets of activity there were revolved around short-dated prime assets, some peripheral paper and a few major CMBS names.

    With a UK bank holiday .......

    SCIWire 28 August 2015

  • US CMBS loss severities normalise

    The weighted average loss severity of US CMBS loans liquidated at a loss rose to 41.6% in 2Q15, up from 24.5% in the prior quarter. Moody's notes that the 1Q15 figure was highly unusual, so last quarter's figure represents a return to historical levels.

    There were 234 loans liquidated with an average disposed balance of US$11.5m in 2Q15, compared to .......

    News Round-up 27 August 2015

  • FHA to provide PACE update

    The FHA will soon issue guidance on residential property-assessed clean energy (PACE) financing. Kroll Bond Rating Agency says there should be no negative credit effect on the senior PACE lien asset class, although borrowers may be encouraged to refinance and subordinate their PACE liens to mortgage liens, in which case prepayments could increase.

    The FHFA has already voiced its opposition .......

    News Round-up 27 August 2015

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving as broader market volatility reduces.

    Market sentiment improved across the board yesterday and consequently secondary spreads edged in slightly, albeit on continuing very low volumes. Yesterday's BWICs all traded at or above expectations with the Italian RMBS auction a highlight, though covers were below recent levels.

    Nevertheless, the summer lull is .......

    SCIWire 27 August 2015

  • Gagfah opportunity identified

    Price tiering for Gagfah CMBS has emerged over the summer, although not in the way that might be expected. These price movements make TAURS 2013-1 appear particularly cheap.

    Deutsche Bank European securitisation analysts initially expected a staggered prepayment throughout 2016 of the three Gagfah transactions, with TAURS 2013-1 the most likely to prepay on a standalone basis. However, the market appears .......

    News 26 August 2015

  • CRE recognition urged

    CREFC Europe has sent a letter to the European Commission, calling for it to include a special mention for CRE debt and CMBS when it releases its securitisation 'package' in accordance with its Capital Markets Union action plan next month. The letter stresses that the current proposals do not accommodate securitised CRE debt, while noting that a healthy CMBS market .......

    News Round-up 26 August 2015

  • Euro secondary struggles on

    The European securitisation secondary market continues to struggle on amid broader market volatility.

    Yesterday's European BWICs covered at reasonably strong levels where the line items did actually trade. However, the overall lack of flows continues to hamper price transparency and is pushing bid-offers still wider.

    Today's BWIC schedule currently sees four lists. At 10:00 London time is a seven line .......

    SCIWire 26 August 2015

  • US secondary slowdown

    US BWIC supply has slowed to a trickle today across asset classes.

    Events in China and the feared knock on impact on the US Fed's rate strategy look to have sidelined the bulk of US securitisation secondary market participants. The resultant absence of sellers is making for a quiet looking day across asset classes even for the fourth week of .......

    SCIWire 25 August 2015

  • US CMBS realise losses

    August remittance data shows a mixed picture for US CMBS. A couple of prominent loans have moved into special servicing, while subordinated notes have realised losses in LBUBS 2008-C1, JPMCC 2006-LDP7 and CSMC 2008-C1.

    The US$64m Chesapeake Square loan securitised in JPMCC 2004-LN2 has been transferred into special servicing, report Barclays analysts. It is the second time the loan has .......

    News 25 August 2015

  • Resurfaced CMBS amended

    Goldman Sachs has restructured its REITALY Finance CMBS transaction by splitting the €109.3m of class A senior notes to include some additional protections. The deal, which provides exposure to leisure properties, had recently been postponed by the bank (SCI 24 July).

    Fitch has assigned single-A plus and single-A ratings to the newly tranched A1 (€70m) and A2 (€39.3m) notes respectively. The .......

    News Round-up 25 August 2015

  • Euro secondary holds up

    In the face of continuing equity market volatility the European securitisation secondary market appears to be holding up relatively well.

    True price discovery remains very difficult with almost no trading thanks to the summer lull combined with the extreme equity and FX market volatility discouraging any securitisation market participants still at their desks. However, dealers for now appear to be taking .......

    SCIWire 25 August 2015

  • Short loan MBS debuts

    Amicus has issued what is believed to be the first UK MBS to be backed entirely by short-term property loans. Three of the four tranches in the unrated Amicus Mortgage Finance 2015-1 were privately placed last week, amounting to £95m of the £100m transaction.

    The £78m class A notes feature 22% credit enhancement and were sold at par. The junior £5m .......

    News 24 August 2015

  • CMBS property incomes improve

    The NOI of Fitch-rated US CMBS improved 3.2% year-over-year in 2014, compared to 2.5% growth in both 2012 and 2013. Led by hotel and multifamily properties, approximately 65% of the commercial properties by loan count in Fitch's portfolio reported an increase in NOI between 2013 and 2014.

    Year-on-year increases for the major property types in 2014 from their 2013 figures were: .......

    News Round-up 24 August 2015

  • Euro secondary fades further

    The European securitisation secondary market continues to be weighed down by seasonal illiquidity and macro concerns causing the hitherto positive tone to fade further.

    Activity remains extremely patchy with only small pockets of trading surrounding CMBS and prime ABS/RMBS. Elsewhere, a selling bias is emerging with wider market volatility beginning to bite and bid-offers are widening as even more participants .......

    SCIWire 21 August 2015

  • Marketplace lender hires Zinn

    ApplePie Capital has appointed Jeff Zinn as head of capital markets. He joins from Jefferies, where he was md, specialising in structured product sales that included ABS, MBS and CLOs.

    Zinn will now be responsible for accelerating ApplePie Capital's growth and expanding the company's relationships with institutional investors. He has also held roles at The PrinceRidge Group, Bank of America .......

    Job Swaps 20 August 2015

  • Euro secondary sidelined

    Broader market volatility is adding to the summer doldrums in the European securitisation secondary market as it is keeping even more players on the sidelines.

    The market continues to lack conviction as activity remains patchy and very light. What little trading there was yesterday was once again mainly focused on prime assets.

    Meanwhile, BWIC activity also remains negligible and yesterday's handful of .......

    SCIWire 20 August 2015

  • EMEA maturity defaults dip

    The 12-month rolling loan maturity default rate for European CMBS in S&P's rated universe decreased to 19.6% from 25%, at end-July. The agency reports in its latest monthly European CMBS bulletin that the overall senior loan delinquency rate remained stable at 49.8%.

    The delinquency rate for continental European senior loans increased slightly to 63.3% from 63.1%. The rate for UK .......

    News Round-up 19 August 2015

  • CMBS lending team boosted

    Walker & Dunlop has hired Jeffrey Taschler to its CMBS and high yield-focused commercial property funding (WDCPF) team. As coo and svp, Taschler will be responsible for originating commercial financing opportunities for clients nationwide in the US and will report to WDCPF ceo Tim Koltermann.

    Prior to his arrival, Taschler served as md at Ladder Capital, where he led a .......

    Job Swaps 19 August 2015

  • Euro secondary unchanged

    European securitisation secondary spreads remain unchanged as the seasonal lull continues.

    Yesterday once again saw very limited flows across the board. Small and patchy exceptions came in selected autos, cards and CMBS.

    Today's European BWIC schedule currently contains three lists. At 10:00 London time there is mixed sterling RMBS list involving small clips.

    In the afternoon there are two CLO .......

    SCIWire 19 August 2015

  • BlackRock wins vendor role

    The US NAIC has selected BlackRock Solutions as sole vendor to conduct financial modelling for the next three years for both RMBS and CMBS. The association had previously issued two separate RFPs, seeking firms to model CMBS and RMBS respectively (SCI 12 February).

    The NAIC has used BlackRock Solutions to perform financial modelling of CMBS since 2010, but had previously .......

    Job Swaps 18 August 2015
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