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From TreppWire: Preliminary Data Points to Large Jump in Loss Severities in August Spoiler alert. We usually don’t do sneak previews, but the alarming number of loans resolved this month with big losses piqued our interest. We’ve written about a number of them already this month: the 83% loss on the Westin O’Hare loan, the [...] This report on commercial mortgage backed securities came in today from Trepp, Inc. which follows this market. It measures delinquencies of commercial real estate loans that comprise the large mortgage pools that make up securitized mortgage investment trusts. It is a good measure of the overall health of the CRE market, [...] This just came in from Trepp, a company that keeps track of CMBS (commercial real estate). Here is another Simon Properties deal that looks weak. There is still underlying rottenness in the CRE market, especially in retail. Report: Tenant Issue Threatens to Sink Philadelphia Retail Loan The sharp eyes of Lea Overby and Steven Romasko [...] Here is another commercial real estate credit report from Trepp on CMBS. This deal is off about 60% from its 2006 value. Never invest in a project that uses the words “Galleria” or “Centre” or “Pointe.” “Officentre”? Sounds more like “off center.” Michigan Office Sees Value Shaved By More Than Half The $86.2 million Galleria [...] I really like Nicole Gelinas’s articles in the City Journal. She says she has Austrian “tendencies.” She has written a wonderful article (“The Mortgage Hangover”) on the aftermath of the housing crisis and why the real estate market and the economy is not recovering. She contends that among the reasons that we have not been able [...] Trepp’s July delinquency report for CRE loans wrapped up in MBS reached an all-time high: 9.88%. Much of the positive momentum that had been surrounding the CMBS market recently has now all but vanished in the past few weeks. For the better part of the spring, the market was riding a wave of spread tightening, [...] A curious thing happened in the RMBS and CMBS markets (ABX) this Spring: it crashed and ultimately recovered only somewhat (at least for the super senior tranches). DoctoRx, who follows things like spreads closely, brought this activity to my attention. Neither of us saw any underlying economic factors that would explain this phenomenon. So what [...] This piece from Trepp, a company that tracks commercial real estate mortgage-backed securities, tells the sad tale of The Oasis at Tallahassee, a 288 student housing complex that was packaged up in 2006 as part of the trust pool of Wachovia Bank Commercial Mortgage Trust Series 2006-C24. The $2 billion pool consisted of 119 CRE loans. [...] This Trepp’s latest report on loan losses in the CMBS market for March. Losses for the the majority of loans were less than 2%, a vast improvement from a year ago (average 41.4% vs. 17.% overall in March). The increased volume of loan liquidations is a positive sign of balance sheet repair. What we don’t [...] |
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