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CMBS

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  • The collateralized loan obligation market faces an “existential threat” in the Volcker rule, says the Loan Syndications and Trading Association, an industry group.
  • The delinquent unpaid balance for commercial mortgage-backed securities fell by $1.65 billion in February, the fourth consecutive decrease, according to Morningstar.
  • The weighted average loss severity for loans in U.S. commercial mortgage-backed securities liquidated at a loss was a record 41% in the fourth quarter, up from 39.7% in the preceding three-month period, according to Moody’s Investors Service.
  • Wells Fargo and RBS have priced the $863.5 million commercial mortgage-backed securities deal WFRBS 2012-C6, with spreads on the10-year AAA-rated class hitting 105 basis points over swaps, supporting the bullish trend in primary CMBS.
  • All eyes in the commercial real estate market were on MSC 2012-C4, a conduit deal from Morgan Stanley and Bank of America that was being priced as SI went to press on Friday morning.
  • UBS and Barclays Capital are set to market a new commercial mortgage-backed securities deal.
  • Prices of Freddie Mac securities have improved relative to their Fannie Mae counterparts as the U.S. Department of Treasury today announced it had finished selling down its mortgage-backed securities portfolio with a $25 billion profit.
  • Improved disclosure through the foreclosure process would likely increase investor confidence in commercial mortgage-backed securities, according to Fitch Ratings.
  • Lloyds Banking Group is tendering for bonds in two legacy U.K. residential mortgage transactions.