CMBS

  • Risk retention expectations surveyed

    Just over half (51%) of the respondents polled in Morgan Stanley's latest US CRE survey believe the market will pay up for risk retention-compliant CMBS deals. Opinions varied about anticipated quality differences in transactions retained by banks versus B-piece buyers, but overall more participants (38%) expect banks retaining a horizontal strip to result in a higher quality deal. Just under .......

    News 6 July 2016

  • Portfolio solutions head poached

    Federico Montero has joined Evercore's investment banking business in London as an md, leading its European real estate portfolio solutions team. The team will focus on providing independent advice in relation to the sale of non-core loan portfolios secured by commercial real estate, along with related debt advisory opportunities.

    In his new role, Montero will work closely with Evercore's financial .......

    Job Swaps 5 July 2016

  • Secondary markets advisors sought

    ESMA has published a call for candidates to form a consultative working group (CWG) for its secondary markets standing committee (SMSC). The two-year term of the existing CWG will expire shortly.

    The CWG mainly advises and assists the SMSC on technical standards to be submitted to the European Commission and on guidelines, Q&As and other guidance in relation to relevant .......

    Job Swaps 5 July 2016

  • BBC-linked CMBS downgraded

    Fitch has downgraded the class A notes of Juturna (European Loan Conduit No. 16) and Pacific Quay Finance to single-A plus from double-A minus, with a negative outlook. The action follows a change in the agency's view of the credit quality of the BBC, which is the sole tenant of the underlying properties.

    The affected CMBS are fully amortising sale .......

    News Round-up 5 July 2016

  • Multifamily lender acquired

    Cornerstone Real Estate Advisers is set to buy Ares' agency lending subsidiary, ACRE Capital, for US$93m. The acquisition could close as early as this quarter, which would expand Cornerstone's commercial loan origination platform and double the size of its multifamily loan portfolio from US$5bn to US$10bn.

    ACRE Capital originates and services multifamily residential mortgage loans, senior housing and healthcare facility .......

    Job Swaps 4 July 2016

  • RFC issued on IO clarification

    Moody's is seeking comment on a proposed clarification to the methodology it uses to rate interest-only (IO) securities regarding when ratings will be withdrawn. If the content of this RFC is adopted as proposed, the agency would withdraw the ratings of approximately 35 US CMBS IO classes that have reference principal balances of zero, since the debt-like obligation associated with .......

    News Round-up 4 July 2016

  • UK sovereign-linked deals downgraded

    Fitch has downgraded 18 tranches, and placed another two on rating watch negative, from six transactions which are credit-linked or have significant direct credit exposure to the UK sovereign. The rating actions follow the downgrade of the country's long-term issuer default rating to double-A earlier this week.

    Annington Finance No.1 and Sceptre Funding No.1 rely entirely on rental payments from .......

    News Round-up 1 July 2016

  • JQH exposure eyed

    Last Sunday's John Q Hammons Hotels & Resorts bankruptcy protection filing is being closely monitored by Kroll Bond Rating Agency. The rating agency has identified five loans across 10 CMBS with an aggregate balance of US$690m that are impacted by the filing.

    Kroll rates four of the 10 securitisations. No ratings are being put on watch at this time.

    The .......

    News Round-up 1 July 2016

  • Rating agency increases reach

    Scope Corporation is set to acquire FERI EuroRating Services, effective from the start of August. The firm intends to establish itself as the European alternative to the US rating agencies.

    Scope Group intends to spread its business across three areas under Scope Corporation. Scope Ratings will be responsible for all credit rating activities; Scope Analysis will be in charge of .......

    Job Swaps 30 June 2016

  • CMBS liquidations move up

    US CMBS liquidation volume was below the 12-month average in June, according to Trepp. Disposition activity reached US$809.3m for the month, which is below the US$902.9m average but up from US$501.5m in April and US$854.5m in May.

    The average loan size liquidated also dropped to US$10.1m across 80 loans, below the US$13.4m average figure over the past 12 months. In addition, seven loans worth .......

    News Round-up 30 June 2016

  • Settlement reinvestment options weighed

    Current holders of non-agency RMBS from 512 Countrywide deals have finally received almost US$8bn in cash payments, five years after the original settlement (SCI passim). As investors look to put the cash back to work, Morgan Stanley analysts believe other securitised products would make a natural destination for reinvestment.

    The Countrywide settlement covers breaches of certain representations and warranties as .......

    News 29 June 2016

  • SF upgrades keep momentum

    The global structured finance upgrade rate reached a record high in 2015, according to S&P. Although the downgrade rate was still higher at 11.2% last year, the upgrade rate increased to an all-time high of 9.8% in 2015 and a jump from 8.4% in 2014.

    Downgrades were up from 10% in 2014, but still presented a slow-down in growth for all but .......

    News Round-up 28 June 2016

  • Freddie K-series defeasance soars

    Close to 30% of Freddie Mac K-series eligible first mortgages have either defeased or taken on supplemental debt, says Kroll Bond Rating Agency. Out of 75 rated five-, seven- and 10-year K-series fixed rate transactions with a current outstanding principal balance of US$97.9bn, 8.6% have defeased and 19.9% have taken on supplemental debt.

    To be eligible for defeasance, first mortgages .......

    News Round-up 28 June 2016

  • Euro secondary sidelined

    Most participants are waiting on the sidelines in the European securitisation secondary market amid broad market volatility.

    Two sessions on from the Brexit vote and liquidity remains thin across the board, but there is yet to be any sign of the tailspin seen in wider markets. Dealers in every sector widened their bids on Friday but other than some opportunistic .......

    SCIWire 28 June 2016

  • Special servicer transfers accelerating

    Fitch has observed US CMBS loans transferring to special servicing at an accelerated pace through the first six months of this year. The agency expects this trend to continue for the remainder of 2016.

    At year-end 2015, Fitch identified approximately US$65bn of conduit loans scheduled to mature in 2016. Of that amount, US$10bn was already defeased and US$11bn was already .......

    News Round-up 27 June 2016

  • Agency recruits trio

    Morningstar Credit Ratings has made a trio of new hires in New York, including Lea Overby as md, leading structured finance research. This position is a newly created role for the agency, which will see Overby head up structured finance initiatives and support its analytical team in MBS, ABS and CLOs.

    Prior to moving, her most recent role was as executive .......

    Job Swaps 24 June 2016

  • Hope note provisions 'provide fix'

    Provisions that exclude hope notes in determining who controls a CMBS transaction correct a potential misalignment of interest, says Moody's. These provisions are appearing in a small but growing share of new CMBS transactions.

    "The new provisions we are seeing in servicing agreements place control of a CMBS transaction in the hands of certificateholders with bond positions that are supported .......

    News Round-up 24 June 2016

  • CRE 'storm' predicted

    US commercial real estate (CRE) prices could drop as much as 5% over the next 12 months, according to a new PIMCO report. The price decline could come from a confluence of factors, including volatility in public markets, tightened regulations, maturing loans and uncertain foreign capital flows - a number of which tie into the performance of CMBS.

    The report notes .......

    News Round-up 23 June 2016

  • Euro secondary settles down

    After a flurry of activity over the past two sessions the European securitisation secondary market has settled down today to await news from the UK EU referendum.

    Following a quiet Monday volumes picked over the next two days sparked by the increase in BWIC activity noted on Tuesday and continuing improvement in wider markets. Flows were relatively healthy yesterday too .......

    SCIWire 23 June 2016

  • Business development head hired

    Solutus has recruited Gareck Wilson from Brookland Partners in a senior role to develop its UK business as part of the firm's expansion plans. As head of business development, he brings diverse high-end experience gained across the real estate finance sector in the UK, Europe and internationally, including debt restructuring, corporate advisory, lending, securitisation and capital markets.

    In his previous .......

    Job Swaps 22 June 2016

  • Cracks emerging in US housing

    A robust housing market has not prevented a number of 'minor' cracks from opening up within US housing, reports Fitch. Rising interest rates, demographics and employment growth point to a positive 2H16 and start to 2017, but challenges for the housing recovery include ongoing labour shortages and the potential for it to become more widespread. 

    Fitch believes that current trends have created a .......

    News Round-up 21 June 2016
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