Widening spreads in the European CMBS market are due to an oversupply of product and a lack of buying by the European Central Bank (ECB), an audience in London was told. The last three CMBS deals have been disappointing for the issuing banks, Bank of America Merrill Lynch with €145.8m Taurus 2015-3 EU DAC, and Goldman Sachs
2 min read · 18 October 2015
A judge was wrong to hold that the CMBS issuer in the Titan v Colliers case was the correct claimant and also had no basis for finding an asset overvalued, the Court of Appeal in London has heard. Colliers is appealing against a High Court ruling last year that it overvalued an asset in Germany by €32m in the Titan Europe 2006-3 CMBS deal.
3 min read · 09 October 2015
Credit Suisse is taking legal action against its own Titan Europe 2006-2 deal in what is believed to be the first action of its type by a Class X noteholder. The €862m 11-tranche Titan Europe 2006-2 deal contained a €50,000 Class X component. The transaction is a securitization of seven loans, originated by Credit Suisse, made on 208 properties located across Germany.
3 min read · 02 October 2015
Proceeds from the sale of assets in the heavily defaulted £850m Gemini CMBS should be classified as principal and not interest, the High Court in London has ruled. The decision means that under the deal’s contract only the Class A noteholders should receive payments from any asset sales. Had the court ruled sale proceeds as interest, then the junior noteholders, classes B to E, would also be eligible for payments.
3 min read · 01 October 2015
Improving industrial performance in the US could result in the sector becoming a larger part of commercial real estate lending through the CMBS markets, according to a new report from data and research firm Trepp.
1 min read · 01 October 2015
There is no single cause for the widening in CMBS spreads that saw the last three European deals sell below par, delegates at Real Estate Capital’s Europe Forum 2015 heard today. Three CMBS deals, from Goldman Sachs and Bank of America Merrill Lynch, priced below par and are assumed to have made losses for the respective issuing banks.
3 min read · 29 September 2015
Seven loans from a JP Morgan CMBS deal from 2006 have been liquidated, amounting to more than $82m in write-offs, according to data from research firm Trepp.
2 min read · 17 September 2015
Rating agency Morningstar has raised a red flag on the potential default of California’s $220m Maple Drive portfolio loan due to the upcoming departures of several major tenants. The loan, the second largest in the JPC07L11 CMBS, is backed by six buildings at three locations (335-345 North Maple, 9242 Beverly Boulevard and 407 North Maple Drive) in Beverly Hills, California, […]
2 min read · 08 September 2015
Kroll Bond Rating Agency (KBRA) is flagging a rise in “Credit Bar-Belling” among CMBS loan pools, a practice that uses lower leverage investment grade (IG) loans to compensate for increases in riskier loans.
1 min read · 03 September 2015
Goldman Sachs has priced its restructured €182.25m REITALY CMBS at a blended coupon of 317.4bps. The deal, a securitisation of a single €191.5m loan to Apollo Global Management for a portfolio of 25 Italian retail assets, was relaunched last week after being delayed in June.
2 min read · 02 September 2015
