NPLs

  • 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

  • European NPLs and the advantages of securitisation

    Dennis Buckley, director at Credit Mediation Limited, discus...

    Estimates from reports compiled by PwC and EY put the current volume of non-performing loans (NPLs) made by banks within the EU at between €1.2trn and €1.5trn, with these levels expected to rise further in the next few years. The market has seen a number of high-profile sales of large NPL portfolios, the most recent being Lloyds' sale of its .......

    Talking Point 7 January 2014

  • Liquidation timelines lengthening

    With the US housing market seemingly on the path to recovery, the volume of distressed non-agency mortgages has this year dropped to less than half of what it was at its peak in February 2010, according to S&P. As of November 2013, US$232bn of non-agency mortgages remains in the shadow inventory, down from US$495bn at the beginning of 2010. However, .......

    News Round-up 24 December 2013

  • Opportunities eyed in German NPLs

    CORPUS SIREO expects non-performing loans to generate a market potential in real estate asset management services worth more than €2bn in Germany over the next two years. Commercial real estate financing in the country currently stands at between €250bn-€300bn, about one-tenth of which has been securitised in CMBS.

    Given the sheer volume of the loans coming due, the redemption of .......

    News Round-up 11 November 2013

  • Italian RMBS recoveries examined

    Some Italian residential mortgage loans that defaulted as long ago as 2004 are still not resolved, highlighting the long recovery times compared with other jurisdictions, Fitch reports. An analysis undertaken by the rating agency shows the impact of the higher expected loss assumptions that result from long recovery times.

    Historical data provided by the nine originators of ten Fitch-rated Italian .......

    News Round-up 30 October 2013

  • PROUL 1 basis highlighted

    The sale of three assets from the LCP Proudreed CMBS portfolio will result in a £9.17m partial prepayment of the transaction at the November IPD (see SCI's loan events database). This is the latest development in a series of recent actions that suggest the borrower is preparing to refinance the larger of the two loans backing the deal .......

    News 29 October 2013

  • Greek repurchases 'artificially stabilising' arrears

    Sponsor bank repurchases of mortgage loans from Greek RMBS deals are reaching high levels, totalling up to 65% of the original pool in some transactions, according to Moody's latest Credit Insight publication. The move is artificially stabilising arrears levels, which masks the true extent of the deterioration of Greek RMBS collateral credit quality.

    As long as banks continue to provide .......

    News Round-up 18 October 2013

  • Record year for clean-up calls?

    The number of US non-agency RMBS clean-up calls has doubled since the start of summer (SCI 4 June), putting 2013 on course to see more deals called than in any year since 2005. However, shifting economic conditions may put the brakes on call activity, while not all sellers are embracing calls equally.

    Senior fixed-rate tranches have begun trading above par, .......

    News 11 October 2013

  • Spanish NPL warning issued

    The rise in Spanish non-performing loans (NPLs) recently announced by the Bank of Spain is likely to continue as banks reclassify some refinanced loans and reduce the support they have provided to their structured finance transactions, Fitch says. If the rate of increase continues, the agency says it could trigger a review of its probability of default assumptions for individual .......

    News Round-up 27 September 2013

  • Cerberus grows German holdings

    Cerberus Capital Management affiliates have acquired two portfolios of German real estate properties: the Phoenix portfolio of nine shopping centres formerly owned by Wells Fargo; and the Monsoon portfolio of ten retail properties, which secures the Countrywide Kaufland loan securitised in EPIC Drummond (see SCI's CMBS loan events database).

    The Phoenix portfolio includes a combined floor space of .......

    News Round-up 22 July 2013

  • NY firm adds SF lawyer

    Hunton & Williams has added Brent Lewis to its structured finance and securitisation practice as counsel in New York. Lewis' practice focuses on corporate finance and securitisation. He represents issuers, underwriters, servicers, originators and others in public and private securitisations involving residential and commercial mortgage loans.

    .......

    Job Swaps 15 May 2013

  • Affordable housing to hit Sofoles RMBS?

    Fitch warns that Mexican President Pena Nieto's affordable housing policies may have negative consequences for existing private-sector RMBS sponsored by Sofoles. This segment is already experiencing an increase in REOs as foreclosures have risen and servicers have been slow to dispose of existing inventories.

    Fitch believes the policy changes could put further pressure on future sales of these REOs as .......

    News Round-up 10 May 2013

  • Project Aspen JV formed

    Ireland's NAMA and Starwood Capital Group have established a joint venture relating to the sale of NAMA's €810m portfolio of commercial real estate non-performing loans known as Project Aspen. Under the terms of the agreement, NAMA will sell the portfolio to the new joint venture entity, which will be 20% owned by NAMA and 80% owned by a consortium led .......

    News Round-up 3 May 2013

  • TITN 2007-CT1 note EOD likely?

    Comprising 33 loans, down to 18 currently, Cornerstone Titan 2007-1 has the largest loan count among European conduit CMBS. The majority of the remaining loans is already in special servicing and the transaction is expected to be backed by a fully non-performing loan portfolio soon.

    The work-out proceeds and losses for the largest loan in the portfolio - Xanadu - .......

    News 26 April 2013

  • NPL investment trends examined

    Europe is emerging as a non-performing loan market in its own right, with an estimated €1trn of NPLs now on the balance sheets of the region's banks, according to a new Ernst & Young report. While the US NPL market also remained active in 2012, the opportunity appears to have a shorter timeframe than originally anticipated.

    Christopher Seyfarth, a partner .......

    News Round-up 19 April 2013

  • RMBS holders consider clean-ups

    Clean-up calls are back on the agenda for seasoned senior jumbo RMBS now that the search for yield has pushed the securities above par. So far there has been significant variation between sellers as to how often they call, with several economic factors needing to be taken into account.

    From a total of 2,729 issued jumbo deals that were eligible .......

    News 18 April 2013

  • Servicing opportunities eyed in Spain

    Third-party non-performing loan servicers from outside Spain are seeking to establish platforms in the Spanish mortgage market that could bring additional specialist expertise to mortgage servicing, Fitch reports. The agency says that increasing use of specialised servicing platforms could be positive for RMBS portfolio performance, helping to achieve better recovery rates as delinquencies - and the resources required to deal .......

    News Round-up 3 April 2013

  • Servicer loan sales eyed

    One lawsuit that grabbed the market's attention last week is the KIRP versus Nationstar Mortgage case, in which Nationstar is alleged to have harmed investors by selling non-performing loans via the auction.com platform. Bank of America Merrill Lynch MBS analysts suggest that the issue is similar to the eminent domain challenge (SCI passim), where the key question likely will be .......

    News Round-up 13 March 2013

  • ML-style GSE unwind advocated

    The FHFA has called for a new securitisation infrastructure in which Freddie Mac and Fannie Mae's presence is contracted (SCI 5 March). The Bipartisan Policy Center also published a report last month calling for the elimination of the GSEs over a five- to 10-year period, but any such wind-down could have significant ramifications for the securitised markets.

    Freddie Mac and .......

    News 6 March 2013

  • Servicers adapt to market deterioration

    The slow-down of the European structured finance market has not coincided with a corresponding contraction in servicing activity, S&P says. A new report published by the rating agency highlights a number of changes seen in the European servicing sector since 2008.

    In particular, European servicers have adjusted their business models to compensate for the deteriorating market conditions. For example, the .......

    News Round-up 22 February 2013

  • Turning the corner?

    Growing optimism in European CMBS market

    It has been a tough couple of years for European CMBS, but there are signs that the environment may be changing. Primary issuance is likely to pick up this year, while the rate of enforcements is expected to shrink as borrowers become more engaged and look to achieve orderly workouts.

    Primary issuance has been widely forecast to reach between €5bn .......

    News Analysis 18 February 2013
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