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CMBS

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  • Credit Suisse is beefing up its bond platform to compete with the two major legacy platforms still widely used by the Street.
  • A property underpinning Morgan Stanley’s €1.1 billion ($1.57 billion) pan-European commercial mortgage-backed securitization Vulcan (European Loan Conduit 28) is to be offloaded, with the proceeds applied to the notes on next month’s payment date.
  • After closing the first two post-crisis CMBS deals, Deco 2011 CSPK and Eirles Two Ltd Series 355, CMBS specialists say that Deutsche Bank could be poised to make a return to the capital markets soon after the summer break.
  • Now is a good time to sell the Fannie Mae 4 butterflies and scoop up some relative value as the trade enjoys a low risk exposure, according to Morgan Stanley analyst Janaki Rao.
  • Banco Santander is issuing a €1.8 billion ($2.56 billion) Spanish residential mortgage-backed deal, known as Santander Hipotecario 7, but the transaction is likely to be retained as investors continue to be spooked by Spanish asset-backed paper, according to a senior syndicate official in London.
  • Bank of America-Merrill Lynch’s $8.5 billion settlement last week will have investors strategizing about which residential mortgage-backed securities could get putbacks next, market players say.
  • A large mortgage originator is looking to sell into the market a $55 million whole loan portfolio of jumbo high-quality mortgages in a bid to test investor appetite for future private-label residential mortgage securitizations, according to an investor at a life insurance firm.
  • The delinquency rate for loans 30 days or more past due in U.S. commercial mortgage-backed securities plunged 23 basis points in June to 9.37%, according to Trepp.
  • Allstate Insurance has filed suit against Morgan Stanley, charging the investment bank that it “knew or recklessly disregarded that those lenders were issuing high-risk loans that did not conform to their respective underwriting standards.”