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CMBS

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  • The volume of delinquencies in commercial mortgage-backed securities fell for the third month in a row in January, according to Morningstar.
  • Three properties underpinning the troubled Mozart loan, the largest loan securitized in ABN Amro’s EUR 1.82 billion ($2.44 billion) Talisman 7 commercial mortgage-backed deal, have been sold.
  • Market players say they are keeping an eye on whether other financial institutions will be shrinking their business ties to Fannie Mae on the heels of Bank of America-Merrill Lynch giving notice it would no longer deliver purchase and non-Making Home Affordable refinance loans into the government-sponsored enterprise’s pools due to its ongoing dispute with the GSE over put-back claims.
  • Clydesdale Bank will seek to further tap the residential mortgage-backed securities market—possibly in the U.S.—this year after returning with a privately placed issue, Lanark Master Issuer 2012-1, this week.
  • Several investment banks are said to be approaching investors for bids on the final $6.7 billion piece of the Federal Reserve Bank of New York’s Maiden Lane II portfolio.
  • Dutch commercial mortgage-backed securities face potential risks this year from continued declines in secondary commercial real estate values and a likely increase of distressed portfolios coming to market, according to Fitch Ratings.
  • Center Parcs UK’s securitisation of its holiday resorts marks a fresh spurt of development for whole business securitisation, one of the hottest financial products of the late 1990s and 2000s, but one where innovation has slowed since the financial crisis.
  • FIG
    Deutsche Bank’s Merry Hill CMBS — still only the second true CMBS backed by a European asset since the crisis — has left market participants wondering whether the German bank lost money on the trade. Despite the questionable economics though, the deal boasts a string of innovative features such as US distribution and full 17g5 compliance.
  • JPMorgan Chase has tripled to $72 billion its holdings of mortgage securities without U.S. government guarantees by adding debt mainly from outside the U.S., such as the U.K. and the Netherlands.