NPLs

  • Artificial constraints

    Distressed CRE prices pushing beyond fundamental value

    An artificially constrained supply of US distressed commercial real estate is driving asset prices up beyond their fundamental value. Investors are consequently being urged to analyse more carefully both sources of property and their valuations.

    Carlos Vigon, md at NewOak Capital, notes that the primary method of identifying value in the current market is to buy non-performing debt, convert it .......

    News Analysis 15 September 2010

  • FDIC closes AmTrust deal

    The FDIC has closed on a sale of 40% equity interest in a limited liability company (LLC) created to hold approximately US$1.7bn of primarily non-performing commercial acquisition, development and construction loan assets and owned real estate out of AmTrust Bank. The structured transaction's winning bidder is PMO Loan Acquisition Venture (PMO) - a consortium controlled by Oaktree Capital Management, Toll .......

    News Round-up 1 September 2010

  • Pair of FDIC structured transactions close

    The FDIC has closed on two sales of 40% equity interests in two limited liability companies (LLCs) created to hold failed bank assets in receivership.

    The first sale involved an unpaid principal balance of approximately US$1.85bn from 22 failed bank receiverships. The winning bidder of the multibank structured transaction is Colony Capital, with a price of approximately 59% of the unpaid principal .......

    News 21 July 2010

  • Impact of cajas consolidation unclear

    ABS analysts at Bank of America Merrill Lynch anticipate the impact on Spanish ABS of consolidation among the country's savings banks to be limited, especially given that most of the paper issued in Spain is held domestically. However, they note that a deeper look at the issue is necessary to understand any potential ripple-effects.

    The Spanish cajas have historically been .......

    News Round-up 9 June 2010

  • Business boost

    TALF helps rating agency gain market share

    DBRS is making inroads into the US ABS rating market, gaining market share as its competitors see less business. Moody's, S&P and Fitch have all seen decreases in market share this year, with the latter appearing to be most affected.

    Moody's and S&P have long dominated the credit ratings market and each rated approximately 97% of ABS issued in 2007, .......

    News Analysis 9 June 2010

  • FDIC closes fourth structured note sale

    The FDIC has closed its fourth sale of structured notes, which are backed by commercial real estate loans from 22 financial institutions that the FDIC was appointed receiver to during the period from August 2008 to March 2009. The sale was conducted through a private offering to qualified purchasers.

    The US$233m of SSGN 2010-L3 notes are backed by performing and .......

    News Round-up 26 May 2010

  • Portuguese banks stockpiling assets

    Portuguese structured finance transactions have seen increasing signs of declining performance that could lead to negative rating action, says Fitch. The agency rates 24 RMBS, three ABS and two SME CDO transactions in the jurisdiction and says most show a steady increase in defaults and arrears.

    "Fitch's expectation for performance deterioration does not warrant downgrades to SME transactions at this .......

    News Round-up 12 May 2010

  • Mortgage REIT preps debut securitisation

    PennyMac Mortgage Investment Trust (PMT) has begun working on its first securitisation to provide additional capital and increase its investment capacity. PMT says there is no guarantee the securitisation will be successfully completed, but targets completion in Q210. The REIT has also reported net income for Q110 of US$1.3m on total net investment income of US$3.9m.

    The company acquired five .......

    News Round-up 5 May 2010

  • Residual value

    Non-performing CLO equity in demand

    CLO equity is in demand: fund managers are recording substantial increases in equity valuations, while traders report that residuals of certain deals are pricing as high as 70c or 80c on the dollar. Investor attention is now being turned to non-performing equity in the anticipation that improving deal metrics will result in the resumption of cashflows for those assets.

    Non-performing .......

    News Analysis 24 March 2010

  • South African ABCP conduit restructured

    Fitch has affirmed Thekwini Warehousing Conduit's commercial paper (CP) at national short-term rating of F1+(zaf), F1(zaf) and F2(zaf) respectively. Thekwini Conduit is a single-seller ABCP conduit backed by mortgage loans originated by South African Home Loans (SAHL). The conduit issues various tranches of CP to fund the purchase of mortgage loans, with the programme benefiting from a subordinated loan provided .......

    News Round-up 17 March 2010

  • Repurchase reaction

    Investors respond to GSE delinquent loan buybacks

    Fannie Mae and Freddie Mac's decision to repurchase billions of dollars of 120 day-plus delinquent loans from their guarantee books has resulted in varying reactions in the investor community. While anticipated volatility is attracting some accounts to the sector, others can't sell their holdings fast enough.

    "The prices of agency MBS are getting slammed - particularly 5.5 and 6 coupons," .......

    News Analysis 17 February 2010

  • Italian RMBS protected against forbearance scheme

    UniCredit has launched a scheme that is intended to curb any negative impact on its RMBS transactions connected with the Italian government's mortgage borrower forbearance scheme (Piano Famiglie). Affected transactions include the Cordusio, F-E Mortgages and Heliconus RMBS.

    The Piano Famiglie scheme allows borrowers that meet certain criteria to enjoy a payment holiday period of a maximum of 12 months .......

    News Round-up 17 February 2010

  • Illiquid solution

    Celestino Amore, md and founder of IlliquidX, answers SCI's questions

    Q: How and when did IlliquidX become involved in the structured credit market?
    A: IlliquidX is a financial services boutique providing innovative solutions to professional investors that include institutional, corporate and high net worth clients. We enable our clients to effectively price and trade illiquid securities, such as high yield and distressed debt, bankruptcy claims, NPLs, MBS, CLOs, CDOs and CSOs. .......

    Provider Profile 10 February 2010

  • New firm to target German mortgage assets

    Elystan Capital Advisors - a Munich-based investment firm targeting mortgage-backed assets and the mortgage banking sector in Germany, Austria and Switzerland - has launched, with the backing of private equity house GI Partners.

    Following recent developments in the financial markets, the Elystan founders - Keith Fischer, Robert Grassinger and Ulrich Kastner - believe that there is significant pressure on the .......

    Job Swaps 3 February 2010

  • Prime US CRE collateral on offer

    The Carlton Group has been retained on behalf of a number of CMBS trusts on the sale of approximately US$307m of non-performing loan and REO assets located throughout the US. The portfolio consists of prime office, industrial, retail, multi-family, assisted-living facility and self-storage assets.

    While most recent commercial real estate loan sales have been characterised by land lots and other .......

    News Round-up 13 January 2010

  • Slow CRE recovery expected in 2011

    The pace of US CMBS credit deterioration accelerated in December, with delinquencies topping 6% for the first time in the sector's history. Commercial real estate fundamentals are nevertheless expected to decline more slowly in 2010 than in 2009 and begin a slow recovery in 2011.

    According to Grubb & Ellis Company's latest Real Estate Forecast, most commercial property types should reach bottom near .......

    News 13 January 2010

  • South African RMBS could face ratings volatility

    Increased ratings volatility within South African RMBS transactions could occur due to the practice of originators repurchasing non-performing mortgage loans, says Moody's in a new special comment.

    Dion Bate, a Moody's assistant vp, analyst and co-author of the report says: "Since 2007, Moody's has observed a general deterioration in the asset performance of South African RMBS transactions. This is a .......

    News Round-up 14 October 2009

  • Distressed debt manager absorbs ResCap staff

    Mountain Funding, a real estate investment company specialising in distressed real estate debt portfolios, has absorbed the 14 senior management and real estate professionals from the REO asset management group of GMAC-ResCap's Business Capital Group. Mountain Funding completed this transaction through its asset management affiliate, Mountain Special Servicing.

    As part of the transaction, GMAC-ResCap has engaged Mountain to provide asset .......

    Job Swaps 19 August 2009

  • Non-performing US prime mortgages jump

    Between March and June this year non-performing dollar-value balances in prime US mortgages increased by 13.8% - the largest rise shown among the three RMBS categories of prime, subprime and Alt-A - according to a new report from S&P's market, credit & risk strategies (MCRS) group. Non-performing balances of Alt-A mortgages have risen by 3.2%, while subprime structures have surprisingly .......

    News Round-up 19 August 2009

  • Extension risk rising

    Views diverge over non-agency RMBS fundamental value

    Slowing prepayment rates are raising the spectre of extension risk in the US non-agency RMBS market. At the same time, a divergence in views about fundamental value in the sector appears to be emerging.

    The non-agency RMBS market is at present distorted by the influx of cash into the sector from private equity and distressed debt hedge funds, according to .......

    News Analysis 19 August 2009

  • Under pressure

    Surge in troubled loans puts servicers to the test

    Mortgage servicers, both residential and commercial, are facing increasing pressure as the volume of troubled assets continues to rise sharply. There are concerns over whether primary and special servicers are adequately prepared and that - in certain cases - the infrastructure is not capable of dealing with the expected surge in delinquencies.

    According to Alan Cleary, md of soon-to-launch UK .......

    News Analysis 13 May 2009
×