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CMBS

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  • Properties underpinning loans securitized across the European commercial mortgage-backed market are seeing “dramatic” falls in their loan valuations, according to a study by Royal Bank of Scotland analysts in London.
  • Commercial mortgage-backed securities are performing better as the balance of CMBS continues to shrink, according to Moody’s Investors Service.
  • Banks have been avoiding Standard & Poor’s as a source of commercial mortgage-backed securities ratings after Goldman Sachs and Citigroup pulled their $1.5 billion CMBS deal last July because S&P refused to rate the notes.
  • A number of bids wanted in competition dominated by commercial mortgage-backed paper surfaced in Europe’s secondary market this week.
  • Credit Suisse is arranger and sole bookrunner on a rare U.K. non-conforming residential mortgage-backed issue, Aggregator of Loans Backed by Assets (A.L.B.A.) 2012-1, which surfaced Tuesday morning.
  • Morgan Stanley is said to be preparing to offer $1.1 billion in commercial mortgage-backed securities this week.
  • Bank of America’s issuance of mortgage-backed securities backed by Ginnie Mae tumbled by nearly half in the fourth quarter compared with the preceding three-month period and was down 71% from a year earlier.
  • Only 5% of underwater borrowers—an estimated 500,000 out of 25 million--would be eligible for principal reduction under the $25 billion settlement between the nation’s five largest lenders and government officials, according to the Brookings Institution.
  • The Obama administration has expanded the Department of the Treasury’s Home Affordable Modification Program to include real estate investors.