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...
View ArticleCMBS 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...
View ArticleCMBS 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,...
View ArticleThe 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....
View ArticleSpotted – 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...
View ArticleThe price of distressed defeased treasuries
When it comes to what may or may not happen should the US be downgraded, it’s all about the collateral. (And perhaps the GSEs.)Continue reading: The price of distressed defeased treasuries
View ArticleRatings dispute unsettles CMBS market
S&P has suspended its rating on a new CMBS transaction brought to market by Goldman Sachs and Citigroup, setting up a battle over its methodology which could overturn the CMBS market, according to...
View ArticleThe 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...
View ArticleThe (belated) CMBS detox
It’s well known that commercial property investors are facing repayment delays across the board as scores of CMBS deals from the middle of the last decade mature. Borrowers simply can’t refinance...
View ArticleThe dwindling 10 per cent club
Remember the days when securitised products were toxic, complicated and for the recklessly brave only? Another year of rising asset values later and the only members of the “10 per cent club” left are...
View ArticleCarry on conduits
After the deluge comes … erm … the deluge. Commercial Mortgage Alert reports that 37 shops are now in the business of actively originating commercial mortgage-backed securities (CMBS). That’s up from...
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