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’The state of investment banking
Market intelligence provider Tricumen released their report on the state of the investment banking industry on Wednesday.
Their researchers sorted through an inordinate amount of company filings in order to determine the revenues by product segment,
Spotted – a pre-crisis pro-forma CMBS practice
“The steady erosion of loan-to-value requirements and Debt Service Coverage Ratio [DSCR] standards is not as concerning as the reintroduction of pro-forma loans. It is one thing to make a bet on what you know is there,
The supply! The supply!
Maiden Lane’s no lady. She continues to harass Wall Street.
The Federal Reserve has been selling off the portfolio of dodgy Mortgage-Backed Securities (MBS) it acquired as part of its bail-out of AIG.
CMBS 1.0 vs 2.0
We’ve been monitoring trends in CMBS 2.0 — the next generation of Commercial Mortgage-Backed Securities — since early this year, when it became clear that issuance was set to begin climbing again.
And,
CMBS issuance update and the B-piece buyer problem
In search of further proof that the CMBS market is back, FT Alphaville stopped by a presentation on the topic hosted by S&P on Tuesday. We’re planning a deeper look into CMBS later, but for now here are some data points and trends related to issuance that we picked up while we were there:
Premium capture is the new 436(g), Citi says
The repeal of Rule 436(g) sent the securitisation industry into a tizzy in the summer of 2010.
Now a component of last week’s proposed risk retention rules for Mortgage-Backed Securities (MBS) is sparking comparisons from some analysts,
Back to the future with CMBS
Blink and you might have missed it — but the market for Commercial Mortgage-Backed Securities (CMBS) reopened about 15 months ago with three transactions.
But the deals, issued in late 2009, were not CMBS as we knew them pre-financial crisis.
CMBScurviness by originator
Iffy commercial loans pre-financial crisis? Blame the conduits.
A new Federal Reserve discussion paper takes a look at 30,000 loans that were eventually turned into Commercial Mortgage-Backed Securities (CMBS) to figure out whether mortgages originated by certain types of lenders were more risky.
Here comes the promised CMBS issuance
Looks like the expected 2011 rise in CMBS issuance remains on schedule, according to the WSJ on Wednesday:
In the next two months alone, an array of firms—some of which are packaging their first loans since 2007—are expecting at least $5 billion in new issues.
The expected rise of CMBS issuance
Tucked inside the latest S&P report on the state of the CMBS market:
– According to the Mortgage Bankers Association, third-quarter commercial mortgage loan originations were 32% higher than during the same period last year and 15% higher than in the second quarter of 2010.
Your guide to the Fed’s $3.3 trillion data dump
Cast your minds back to 2007, 2008 and 2009 — and think hard.
You’ll need to. The Federal Reserve has just released the mother-of-all data dumps — showing who received payouts from its circa $3,000bn bailout programmes,
RBS and Rec 6, a CMBS story
Here’s a CMBS saga, if ever there was one.
If you worked on an asset-backed securities desk or similar, you might have seen some interesting RBS run requests cross your inbox just after November 10.
CMBS and loan defaults: moving on up
This, from S&P, isn’t very surprising (emphasis ours):
Although the recession officially ended in June 2009, its impact on loan performance among U.S. commercial mortgage-backed securities (CMBS) still lingers.
MERS casts its shadow on commercial mortgages
Barclays Capital analysts have done it.
They’ve linked Mortgage Electronic Registration Systems Inc — currently making headlines in US residential mortgages — to the commercial mortgage market.
And specifically,
Performing PPIFs
The Public-Private Investment Program, or PPIP — do you remember it?
Appropriately, given its somewhat Dickensian name, it was like the orphaned child of banking stabilisation measures. Associated with a difficult early period of the Tim Geithner reign,
One size does not fit all in ABS risk, Fed says
Risk retention requirements for Asset-Backed Securities *yawn.*
But the 96-page report released by the US Federal Reserve this week — outlining the potential impact of risk retention on ABS — makes for interesting financial crisis forensic reading.
CMBS delinquencies climb again, but not by much
It seems the news continues to be better for CMBS than for commercial real estate as a whole.
Standard & Poor’s has released its monthly CMBS snapshot for July, and the top line is that the pace of increase in the delinquency rate has nearly flattened:
Goldman’s CMBS switch
Goldman Sachs — pioneers in whacky securitisation structures — have a new one:
Aug. 3 (Bloomberg) — Goldman Sachs Group Inc. is offering to give investors in the highest-rated portions of a bond sale backed by commercial mortgages control in the event the loans go bad as bankers attempt to revive the market.
[Ireland's Bad Bank] Operatic structured finance
Like the plot-line of a tragic libretto, Opera Finance CMH ’s good fortune has taken a sudden turn for the worse.
Cue the ballad.
Opera CMH is one of the few commercial mortgage-backed securities (CMBS) deals with significant exposure to Irish real estate — including shopping centres in Dublin.
We hope you know what you’re doing, Liberia
Did you get your fingers burnt by mortgage-backed securities in the US subprime bubble? This may give you a jolt. Fresh from the op-ed pages of Liberia’s Daily Observer, emphasis ours:
The modernization of Liberia through a community-based development can begin at an alarming rate if the government of Liberia can provide end loans,
US CMBS delinquencies tick ever upwards
A never ending story, this.
Data released by Moody’s on Friday showed CMBS delinquencies ticked up again in February, climbing by 31bp to 5.73 per cent. The data are based on based on all loans in US conduit and fusion deals issued in 1998 or later which have a current balance greater than zero.
What’s in Repo 105
While Repo 105 was created in 2001, it proved very useful for Lehman Brothers in terms of publicly reducing leverage as the financial crisis intensified in 2007 and 2008.
Lehman had lots of assets — CMBS,
CMBS then and now, and in 2006 to 2008
Bored of US commercial real estate yet?
Not us. Nor, it seems, are the ratings agencies.
Standard & Poor’s issued its latest quarterly report on US commercial mortgage-backed securities (CMBS) late on Friday.
US CMBS deliquencies jump to 5.42%, Moody’s says
Loan delinquencies on US commercial mortgage backed securities posted a record 52bps increase to 5.42 per cent in January, according to Moody’s. In December, the rate was 4.5 per cent.
The rating agency said the increase in the delinquency rate was the largest thus far in the ongoing downturn:
‘The most serious wave of commercial real estate difficulties is just now beginning’
Here’s one of the scariest sentences you will (in all likelihood) read today:
That’s from the latest Congressional Oversight Panel (COP) report, and it is all about — you guessed it — commercial real estate in the US.
A different government view on CMBS
The United States Government Accountability Office published its report on the US government’s Troubled Asset Relief Program last Friday.
It’s a voluminous work, but definitely worth perusing if you have time as it offers some very interesting detail into the implementation of the Tarp and related programs thus far,