CMBS

Bank of America Merrill Lynch (BAML) has released initial price thoughts for its latest CMBS, the €317.05 million Taurus 2016-1 DEU which is backed by a German retail portfolio owned by Blackstone.

The US CMBS delinquency rate dropped another 20 basis points in February after plunging 82 bps in January, according to Trepp.

Bank of America Merrill Lynch (BAML) has launched the first European CMBS of 2016, with the securitisation of a loan written to Blackstone last July to finance a German retail portfolio.

Morgan Stanley researchers have reduced their 2016 base-case private label US CMBS issuance projection from $100 billion to $70 billion, citing widening spreads that are "likely" to continue.

Fitch Ratings is voicing concern over new CMBS lending pools that have non-investment grade (IG) exchangeable classes, something the agency hasn't seen since the financial crisis.

Defeasance activity for US CMBS remained strong last quarter, though changing interest rates or liquidity could derail this two-year trend, Fitch Ratings said in a new report.

Fitch projects US CMBS delinquencies will continue to fall -- another 2.5-3 percent rate drop by the end of 2016 -- after hitting a six-year low at the end of 2015.

Varde Partners has issued a CMBS to refinance a portfolio of secondary UK properties, and sold the bonds to Credit Suisse.

Nearly all individuals (98 percent) who responded to the CRE Finance Council’s annual Market Outlook survey expect CMBS spread volatility to continue in 2016, reflecting a range of geopolitical and other concerns.

US CMBS issuance ended 2015 just over $101 billion, a post-recession first, according to data from research firm Trepp. That may provide some solace after 2014 failed to hit the triple digits as many had hoped, but the final tally is also significantly lower than many early predictions for 2015.