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’The ultimate in Jingle Mail
Jingle Mail : A situation where a homeowner mails his or her house keys to a mortgage lender due to an inability to meet mortgage payment obligations and a lack of equity in the property. If a homeowner is upside-down in a mortgage and feels the entire loan is a lost cause,
Some CMBS datapoints
Titan Europe 2006-3 — part of a CMBS deal put together by Credit Suisse — has been mentioned on FT Alphaville before.
The deal pooled commercial properties in France, Germany, the Netherlands, Belgium and Luxembourg,
US commercial real estate in good news shock
US commercial real estate prices, as measured by Moody’s, increased by 1 per cent in November. This is the first such increase in more than a year, according to the rating agency’s REAL Commercial Property Price Indices.
Spot the odd one out
Related links:
Good banks, bad banks – FT Alphaville
Banks’ coverage ratio capers cont. – FT Alphaville
Great Depression-esque bad debt at banks – FT Alphaville
Talf gaffe at the Fed
Whoops. Here’s something FT Alphaville missed last week.
A major mea culpa from the Federal Reserve on the legacy CMBS portion of its Talf programme.
From the Fed Reserve Bank of New York:
The New York Fed continuously reviews the stress value estimates and recently identified and corrected a methodological error.
Delinquent CMBS, the `C’ stands for climbing
Behold, what looks to be the biggest monthly increase in delinquent CMBS in 2009 (so far).
Realpoint has released its CMBS delinquency report for November 2009.
With the exception of June 2009,
US CMBS delinquencies hit 4.5 per cent, Moody’s says
Moody’s published the results of its latest CMBS “delinquency tracker” on Thursday and, as usual, they made for less-than-cheery reading.
The rating agency said the aggregate rate of delinquencies among US CMBS conduit and fusion loans stood at 4.47 per cent as at the end of November,
All roads lead to retranching in CRE crunch
Restructuring. Re-tranching. Re-remics. Repeat?
FDIC, the regulator in charge of insuring US bank deposits, has given banks the ability to restructure commercial real estate (CRE) loans to creditworthy borrowers,
A swooning Maiden and the Fed’s CRE exposure
What ties the SIGTARP report, Goldman Sachs CDOs and the mounting concern that is US commercial real estate altogether?
The most recent breakdown of the Federal Reserve’s Maiden Lane III portfolio. That is,
Chart du jour: US banks’ exposure to commercial real estate loans
Via Moody’s:
Related links:
The feedback loop of commercial real estate, regional banks and unemployment – FT Alphaville
For America’s small banks, the problems are just beginning – FT Alphaville
The not-so-small small bank CRE problem
Last week, the Federal Reserve Bank of Atlanta president Dennis Lockhart spoke of a `feedback loop’ between US commercial real estate, regional banks and unemployment — something so acute it could derail the country’s economic recovery.
Synthetic CDO stumper
There are more questions than answers in the below — but here are two ratings actions that look set to light the blogosphere on fire:
Fitch Downgrades Abacus 2006-17; Removed from Watch Negative
Talf-tastic CMBS
Ta-dah! Behold the first new CMBS deal in over a year:
(From Structured Finance News, click to enlarge)
`DDR’ is Developers Diversified Realty Corp., an Ohio-based shopping mall Real Estate Investment Trust (Reit).
The feedback loop of commercial real estate, regional banks and unemployment
It is no secret that the Fed is quite, quite concerned about the ongoing shakeout in the US commercial real estate market in the US, but just in case anyone missed the memos, Dennis Lockhart of the Atlanta Fed has devoted a whole speech to the subject.
Taking out the trash at RBS
The UK taxpayer is now the proud owner of £19.8bn worth of monoline exposure.
And £39.1bn worth of commercial real estate.
RBS’s just-released third-quarter results have a bit more detail on just what is going into the Asset Protection Scheme – the UK government’s plan to insure state-owned banks against credit losses.
A not-too-bad US commercial real estate datapoint
The news coming out the of the commercial real estate market has been overwhelmingly negative recently, so the following report from Reuters made for refreshing reading on Tuesday:
The prices of investment-grade commercial real estate rose more than 4 percent in the third quarter,
Commercial real estate – work it out!
They are here! US commercial real estate loan workouts!
And they’ve already garnered their fair share of criticism. To start with though, here’s the basic idea from the FDIC and the Fed:
The regulators have found that prudent CRE loan workouts are often in the best interest of the financial institution and the borrower.
Europe’s covered commercial real estate
Here’s a useful bit of information as we wait for the commercial real estate crisis to drip into the European banking system:
That is commercial real estate (CRE) exposure for European covered bonds rated by Fitch,
Ross, Icahn expect a commercial real estate crash
Carl Icahn is a busy man. On the same day he agreed a restructuring plan with constantly-on-the-verge-of-bankruptcy CIT, he told Bloomberg’s Tom Keene he quite concurred with Wilbur Ross’ earlier assessment of the outlook for commercial real estate in the US,
Talf gaffe
Here’s your latest dose of Fed Talf CMBS-buying mystery.
The Fed accepted 81 of the legacy CMBS bonds submitted in the latest (Oct. 21) Talf subscription, and rejected five — an acceptance rate of 94 per cent.
Regulators looking at banks’ coverage ratios, BarCap says
Remember the issue of declining coverage ratios at European and US banks?
Coverage ratios are essentially loan loss reserves (provisions for bad debt) divided by non-performing loans, and they declined in the second-quarter for European banks and the third-quarter for US banks,
More bad news for Tishman Speyer and NY commercial real estate
One day after the Federal Reserve’s Beige Book suggested a recovery in US commercial real estate was a ways off, the New York Times reported on a court decision that could affect on thousands landlords across the city:
Ballooning CMBS payments
Via HousingWire, an RBS chart which aptly demonstrates the upcoming refinancing need for (US) commercial mortgage-backed securities:
Talking Talf on commercial real estate
October 16, via Structured Finance News:
Researchers at Barclays Capital (BarCap) expect the October facility date for a government loan program to receive an uptick of requests over the last subscription date.
Peeking into Wells Fargo’s pandora’s box of commercial real estate
This is our last recorded call. Wells Fargo has always been committed to providing clear, complete, and transparent communication about the company’s results to all of its stakeholders. As we enter the second year of the merger with Wachovia,
That carpe diem (property) rally
JP Morgan property analysts Harm Meijer and Osmaan Malik give good notes, and their latest piece of research is no exception.
The two are now even more convinced that UK property values are recovering,
China’s liquid real estate bubble
That is the building which houses the most expensive apartment in Hong Kong. The five-bedroom apartment sold for $56.6m on Wednesday, sparking further speculation that the city — and the rest of China — might be in the grips of a real estate market bubble.
All aboard the commercial real estate bailout train
It’s not as prominent as some other bailouts — but it is gaining steam.
To wit, here’s a bit from the Wednesday Congressional testimony of Sheila Bair, chairwoman of the Federal Deposit Insurance Corporation,
Fed minutes reveal “considerable uncertainty” post-stimulus
The Federal Open Market Committee on Wednesday released the minutes of its most two-day meeting in September, and anyone feeling particularly bullish would do well to give them a close read.
The minutes of the meeting show the attendees disagreed over the future of the Fed’s numerous asset purchase programs,