CMBS

Cerberus Capital Management and Chatham Lodging Trust have pulled out of the deal to buy the assets of 66 hotels from bankrupt lodging company Innkeepers USA Trust.

Cerberus Capital’s reported delay of its purchase of some Innkeepers USA assets is a sign of uncertainty in the market, Standard & Poor's said this morning. This is viewed as a negative for CMBS credit.

Lewtan appointed Salil Donde as chief executive officer. Donde joins Lewtan from Marshall & Swift/Boeckh, a provider of essential property information solutions.

The debate about the viability of the super-senior structure in the current environment experiences a resurgence, Fitch Ratings said today.

Moody's Investors Service has withdrawn its preliminary ratings on Domino's Pizza whole business securitization called Domino’s Pizza Master Issuer LLC Series 2011-1.

-----Original Message-----From: Siegel, GarySent: Thu 8/11/2011 11:07 AMTo: Sibayan, KarenSubject: RE: Rep. Waters Seeks SEC Probe, House Panel Hearings on S&P DowngradeThursday, August 11, 2011By Lynn Hume WASHINGTON - Rep. Maxine Waters, D-Calif., has asked the Securities and Exchange Commission to investigate whether Standard & Poor's disclosed its downgrade of U.S. debt to certain financial institutions before it made the information public.In a two-page letter dated Wednesday to SEC chairwoman Mary Schapiro, Waters said: "Given the historic nature of S&P's downgrade, and the tremendous market volatility experienced after that downgrade, I feel it is appropriate for the commission to conduct an investigation."She said the SEC should probe whether any institutions traded on the basis on nonpublic information about the downgrade.Waters also sent House Financial Services Committee chairman Spencer Bachus, R-Ala., a two-page letter asking that the committee conduct a hearing or a series of hearings on "the extent to which [Standard & Poor's] downgrade was based on an objective analysis of U.S. debt dynamics versus subjective political analysis," among other things.The committee also should examine: the impact of the rating agency's using an incorrect Congressional Budget Office assumption in deciding to downgrade U.S. debt; the extent to which Standard & Poor's and its parent, McGraw-Hill Cos., have firewalls to insulate their lobbying and rating activities; as well as the implications of the rating agency's action and its historical performance, she said.In line with her request to the SEC, she asked that the committee examine whether SEC disclosed its downgrade to certain financial institutions before making it public.Waters is the ranking minority member of the House Financial Services Committee's capital markets subcommittee.Rep. Maxine Waters, D-Calif., has asked the Securities and Exchange Commission (SEC) to investigate whether Standard & Poor's disclosed its downgrade of U.S. debt to certain financial institutions before it made the information public.In a two-page letter dated Wednesday to SEC chairwoman Mary Schapiro, Waters said: "Given the historic nature of S&P's downgrade, and the tremendous market volatility experienced after that downgrade, I feel it is appropriate for the commission to conduct an investigation."She said the SEC should probe whether any institutions traded on the basis on nonpublic information about the downgrade.Waters also sent House Financial Services Committee chairman Spencer Bachus, R-Ala., a two-page letter asking that the committee conduct a hearing or a series of hearings on "the extent to which S&P downgrade was based on an objective analysis of U.S. debt dynamics versus subjective political analysis," among other things.The committee also should examine: the impact of the rating agency's using an incorrect Congressional Budget Office assumption in deciding to downgrade U.S. debt; the extent to which S&P and its parent, McGraw-Hill Cos., have firewalls to insulate their lobbying and rating activities; as well as the implications of the rating agency's action and its historical performance, she said.In line with her request to the SEC, she asked that the committee examine whether SEC disclosed its downgrade to certain financial institutions before making it public.Waters is the ranking minority member of the House Financial Services Committee's capital markets subcommittee.

Rule 17g-5 could be enhanced to offer structured finance buyers with more transparency on the rating agency selection process, according to a comment letter Fitch Ratings is submitting to the Securities and Exchange Commission. (SEC).

CMBS issuance could edge up in the short run, as predicted by a recent spike in origination, Standard & Poor's said in a release. CMBS conduits origination soared 638% in Q2 year-on-year, and jumped 210% from Q1, according to data from the Mortgage Bankers Assocation released last week. There is a caveat though: recent reports suggest that lending has tanked.

A gauge of CMBS tenant risk in the U.S. has scarcely been nicked by the U.S. downgrade, according to Standard & Poor's.

In 2Q11, the quality of the loans backing CMBS conduits held steady in terms of leverage, although there are already signs of more aggressive underwriting, Moody's Investors Service said in a report released today on its quarterly review.