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CMBS

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  • Standard & Poor’s new ratings methodology for U.S. commercial mortgage-backed securities deals is expected to lead to a significant number of downgrades for conduit and fusion bonds, despite some changes that it made based on market feedback.
  • The bankruptcy filing for German retailer Arcandor, the largest such filing among German retailers over the past 12 months, could hit the ratings of three European commercial mortgage-backed securities backed by the company’s loans.
  • New York-based 400 Capital Management has launched the 400 Capital Credit Opportunities Fund which will target high-net-worth investors.
  • More than 80% of all European commercial mortgage-backed securities rated by Standard & Poor’s may see two-notch downgrades as a result of continuing problems in the real estate and real estate financial markets.
  • The White Tower 2006-3 commercial mortgage-backed securities deal from Société Générale has breached its loan-to-value covenant as a result of a much lower valuation of the properties in the portfolio.
  • The first European commercial mortgage-backed securities deal to be marketed to third-party investors since 2007 has been priced.
  • FIG
    White Tower 2006-3 has breached its loan to value covenant after an updated valuation revealed a 49.3% decline in the portfolio’s market value to £929m. Unless the breach is cured within 10 days, it will trigger a loan event of default.
  • UK retailer Tesco reopened the catatonic CMBS market this week with a hugely oversubscribed £430.65m sale and leaseback. But the deal’s structure suggests that a renaissance for the asset class is some way off.
  • The first European commercial mortgage-backed securities deal to be marketed to third-party investors since 2007 is making the rounds.