CMBS

The Trepp CMBS Delinquency Rate reversed course and is close to the highest reading of all time, according to the CMBS data provider. This happens just two months after matching its lowest reading in a year.

The Four Seasons debt restructuring took another step toward resolution last week with the announcement that the private equity company Terra Firma will fully acquire the second largest for-profit provider of elderly and specialist care services in the U.K.

Fitch Ratings caused a stir last month when Credit Suisse dropped the firm's rating of an RMBS because it took a more critical view of the deal than two of its rivals.

Two and a half years ago, regulators opened the door for rating agencies to offer ratings or commentary on credits even when they haven't been hired to do so. Since then, all NRSROs can access detailed transaction data that issuers are required to post on designated issuer Web sites. The intended effect: a side market in unsolicited ratings and commentary. The actual effect: not a single unsolicited rating and roughly 15 commentaries.

The April 26 sale of Maiden Lane III (ML III) assets caused some disruption in CMBS spreads.

As issuance of CMBS ramps up again, so do concerns about the deterioration in the quality of loans used as collateral.

Freddie Mac has a new offering of structured passthrough certificates or K certificates. The deal comprises roughly $1 billion in multifamily MBS, which are set to price this week.

The recent CMBS backed by nonperforming commercial real estate (CRE) loans from Rialto Capital Advisors is the beginning of a trend, Fitch Ratings said in a recent report. It is the first CMBS to be backed by nonperforming loans (NPLs) in years.

The CMBS new-issue pipeline is still growing. This week adds a new $1.4 billion single-loan deal backed by the Ala Moana Center mall in Honolulu, Hawaii.