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CMBS

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  • Issuers this week are in the market with approximately $4bn in conduit, single borrower and CRE CLO CMBS offerings, as investors eye the month ahead with some caution after a difficult September.
  • CW Capital Asset Management is in the market with a $2.1bn portfolio of distressed assets, that, once offloaded, will significantly shrink the balance of its specially serviced loan book.
  • Crowdfunding, a hot topic in the ABS markets recently, looks like it may have been the cause of a headache for CMBS investors this month, as a loan was transferred to special servicing potentially as the result of crowd financing on the assets.
  • Investors pushed back this week against the largest loan in COMM 2015-CCRE26, forcing lead issuers Deutsche Bank and Cantor Commercial Real Estate to widen spreads twice from guidance before being able to price the deal on Wednesday.
  • A long awaited multi-jurisdictional CMBS from Bank of America Merrill Lynch was priced in line with expectations on Wednesday but perception of the deal's success was mixed.
  • The single family rental arms of Colony Capital and Starwood Capital Group announced on Monday plans to merge in a stock-for-stock transaction that will bring over 30,000 homes under the group’s collective management.
  • Financial crisis hindsight has been a favorite topic of discussion at ABS industry events since, well, the financial crisis. “Where did we go wrong?”, “How could we have known?”, “The market had never seen a widespread default in etc. etc.”
  • Bank of America Merrill Lynch has circulated initial price thoughts on its €177m Taurus 2015-3 DAC CMBS deal, the securitization of two loans to Starwood Capital’s MStar Europe commercial real estate joint venture with M7 Real Estate.
  • Last month Moody’s Investors Service announced it would be taking comments on a proposal to loosen its criteria for rating single borrower CMBS. Let's hope this is not part of a ratings race to the bottom.