NPLs

  • SME CLO delinquencies stabilising

    Fitch-rated Spanish SME CLO delinquency rates have stabilised over the last 12 months. Stabilisation of delinquencies at high levels is in line with the agency's expectations, which take account of the country's economic recovery but see collateral performance under pressure following almost five years of economic contraction.

    Delinquencies have fallen to an average of 3.9% over the last 12 months, .......

    News Round-up 26 September 2014

  • NPL/RPL demand rising

    Of the circa US$658bn in US non-performing loans - including US$60bn in REO properties - banks, the GSEs and the HUD own about US$400bn, according to Barclays Capital figures. CMBS analysts at the bank estimate that a further US$500bn-US$600bn in re-performing loans is outstanding, with about US$200bn held by the GSEs, US$200bn-US$250bn in non-agency RMBS and the remainder on bank .......

    News Round-up 24 September 2014

  • Non-conforming optionality supported

    Five UK non-conforming RMBS have cured their pro-rata triggers since May, taking the total number of deals in the segment paying on a pro-rata basis to 23, according to Morgan Stanley figures. Given continued improvement in arrears performance, the sustainability of these cures is believed to be high.

    Four of the recently-cured deals are from Kensington programmes - MPS 2, .......

    News 4 September 2014

  • Call likelihood gauged

    US RMBS clean-up call activity picked up in 2Q14, with 10 deals called during the period versus six in the previous quarter. Together with lower rates, one factor that may be contributing to the up-tick is rising prices for non-performing/re-performing loans.

    "If rates stay range-bound and NPL/RPL markets remain strong, call activity will likely stay elevated," Barclays Capital RMBS analysts .......

    News 20 August 2014

  • Loan resolutions slow

    The US CMBS delinquency rate dropped by just 1bp to 6.04% in July, according to Trepp. Loan resolutions totalled only US$600m during the month: with fewer distressed loans removed from the delinquent loan pool, newly delinquent loans pushed the monthly total back up. Trepp currently counts US$32.1bn in delinquent CMBS loans, which is down from June's total.

    "After so many .......

    News Round-up 31 July 2014

  • Spanish NPL risks examined

    Appetite for transactions backed by restructured or re-performing loans is increasing in the Spanish housing market, Moody's observes. The rapid deterioration of the housing market in recent years has forced banks to avoid repossessions in favour of one-to-one solutions, leading banks to refinance or restructure loans to mitigate the increase in repossessions and non-performing loan levels.

    "The recent housing market .......

    News Round-up 24 July 2014

  • Non-core sales bring CMBS boost

    The recapitalisation of European CRE lenders through non-performing or non-core CRE loan sales should provide a supply of new opportunities. This, in turn, could potentially fuel increased European CMBS issuance.

    CRE loan and REO sales for the first half of the year totalled €40.9bn, compared to €30.3bn for the entirety of 2013, according to Cushman & Wakefield Corporate Finance. Bank .......

    News 24 July 2014

  • HUD auction sees three firsts

    Lone Star on 11 June became the first single bidder to win each of the pools offered in a HUD single family loan sale. The 2014-2 Part 1 auction comprised 16 different pools of geographically diverse non-performing FHA loans, with US$3.9bn of aggregate UPB and a US$3.3bn aggregate BPO.

    Loan Star's weighted average bid was 77.6% of BPO (65.8% of .......

    News Round-up 4 July 2014

  • GSE risk-sharing delinquencies 'immaterial'

    One year after GSE risk-sharing RMBS deals were introduced to the market, delinquencies and defaults remain immaterial, according to Fitch. Loan repurchases due to issues identified through GSE quality control reviews have outnumbered non-performing credit events by more than two-to-one. All but one of the loans repurchased were performing at the time of the repurchase.

    "Though repurchases are outpacing credit .......

    News Round-up 2 July 2014

  • Italian servicers adapting to NPL increase

    S&P suggests that the recent rise in Italian non-performing loan volumes could create new growth opportunities for Italian loan servicers. The agency reports that the Italian servicers it ranks have positioned themselves well to be able to manage some of the NPLs that banks and financial institutions could either sell to investors or outsource the servicing.

    The volume of NPLs .......

    News Round-up 2 July 2014

  • RMBS methodology released

    Morningstar Credit Ratings has published a new methodology for US RMBS ratings. In addition to prime jumbo, alternative-A and subprime RMBS, the methodology covers agency risk-sharing securities and securities backed by non-qualified mortgages, non-performing loans and re-performing loans.

    The agency says that the rating methodology has been developed to be forward-looking, yet incorporate the lessons learned in differing economic circumstances. .......

    News Round-up 16 June 2014

  • RFC issued on NPLs

    Moody's is seeking feedback on its proposed approach to rating securitisations backed by non-performing loans (NPLs). The agency proposes to not only consolidate its two existing NPL methodologies, but also to expand the scope of its methodology to address concentrated commercial real estate NPLs and revolving pools. It may apply haircuts to base-case cashflows to derive the final model outputs, .......

    News Round-up 10 June 2014

  • Purchased portfolio approach outlined

    Fitch says that alignment of interest, representations and warranties and the quality of portfolio information are the key areas of focus when analysing RMBS backed by purchased portfolios. Such transactions - including Thrones 2013-1, Rochester Financing No. 1 and Cartesian Residential Mortgages No. 1 - have emerged in the UK and the Netherlands over the last year.

    These portfolios can .......

    News Round-up 5 June 2014

  • RMBS secondary supply jumps

    US non-agency RMBS BWIC volume picked up yesterday to reach around US$410m. A variety of bonds were out for the bid, including a handful of post-crisis non-performing loan tranches.

    Among the Alt-A names circulating during the session, a couple of bonds appeared for the first time in SCI's PriceABS data. The IMM 2007-A M1 tranche was talked at .......

    Market Reports 29 May 2014

  • Online revolution for CMBS market

    US CMBS special servicers were instrumental in generating acceptance for online auctions as distressed loans and REO assets flooded the market in 2009. The volume of US CMBS distressed assets may now be shrinking but the legacy of online CRE brokerage tools will live on, says S&P.

    The rating agency believes that the commercial real estate (CRE) finance industry will .......

    News Round-up 23 April 2014

  • Second wave?

    NPL securitisation opportunity may be ending

    As legacy non-agency RMBS yields have largely dried up, investors have had to look elsewhere. Attractive absolute returns can be found in the non-performing loan (NPL) market, although the opportunity may be overplayed.

    Yield is undoubtedly a primary driver of investor interest in NPL securitisations. While US single-family rental transactions are achieving unexpectedly tight pricing for such a new asset .......

    News Analysis 16 April 2014

  • Chinese credit quality eyed

    The China Banking Regulatory Commission (CBRC) announced last month that commercial bank non-performing loans (NPLs) rose to RMB592.1bn in 4Q13 from RMB492.8bn in the same period of 2012. In addition, the NPL growth rate significantly outpaced total loan growth in 4Q13.

    Moody's notes in its latest 'Structured Thinking: Asia Pacific' publication that these developments suggest that the credit quality of .......

    News Round-up 27 March 2014

  • GSEs to turn to NPL sales?

    The GSEs have published their annual financial reports for last year, confirming that RMBS and CMBS disposals slowed down dramatically in the final quarter as sales targets were reached. With portfolios now significantly reduced, future illiquid portfolio sales may have to come from different sources and non-performing loans could be a candidate.

    The GSEs had an illiquid portfolio sales target .......

    News 5 March 2014

  • NPL sales gather pace

    The availability of debt finance for European commercial real estate rose dramatically last year and the pace of non-performing loan sales looks set to increase in 2014. European securitisation analysts at Bank of America Merrill Lynch expect a conservative portion of the resulting transaction volume to fuel future CMBS issuance.

    CBRE last month put the total volume of outstanding CRE .......

    News Round-up 19 February 2014

  • Share of specially serviced loans down

    The improving economy has driven a drop in delinquency rates and a decrease in the share of loans in special servicing, according to Moody's Q413 US CMBS and CRE CDO surveillance review. The agency's base expected loss for conduit/fusion transactions fell to 8.95% in the fourth quarter from 9.01% the previous quarter. Its Commercial Mortgage Metrics (CMM) weighted average base .......

    News Round-up 3 February 2014

  • Euro residential performance diverging

    The outlook for all major European residential mortgage markets has improved or stayed the same compared with a year ago, but performance among countries is diverging, Fitch notes. The agency expects house price affordability in some cities to be stretched further over 2014, given near-term expected house price increases.

    The divergence in European markets reflects country-specific property cycles and factors .......

    News Round-up 21 January 2014
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