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CMBS

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  • Noteholders of White Tower 2006-3’s class D are likely to be fully repaid, while a partial repayment of the class C notes is expected at the next payment date.
  • Bank of America has filed an appeal a recent high-profile court decision that is poised to give the sponsor of Concord Real Estate CDO 2006-1, a $414 million commercial real estate collateralized debt obligation, the ability to significantly alter the way funds flow through the vehicle to investors.
  • True Sale International, a German organization that provides standardized platforms for securitization, has issued a new certification for deals that will exclude originate-to-distribute bonds from obtaining its approval.
  • Sponsors and originators of securitizations will not be allowed to hedge against the 5% retained slice under the latest guidelines for article 122a of the capital requirements directive II.
  • James Martin, director, London-based commercial mortgage-backed securities analyst at Bank of America, has moved to Barclays Capital.
  • A cultural rift has reportedly developed in Bank of America’s London-based European structured finance team, leading to the departure of several Merrill Lynch members of the team.
  • Tesco stepped up its quasi-CMBS programme this week, almost doubling its last deal to raise £950m backed by 41 UK supermarkets. The retail giant’s deal was effectively the year’s largest sterling corporate bond.
  • At the eleventh hour, the restructuring of Fleet Street Finance No 2 has hit a stumbling block. The German CMBS is backed by properties occupied by insolvent retailer Karstadt.
  • The long-running saga of Titan 2006-4FS, a UK care home backed CMBS which was among the first to run into trouble in the credit crisis, may be nearing its end. This week the issuer presented a restructuring proposal.