CMBS

Participants at ABS East held forth on value opportunities in securitization and how increases in interest rates, loosening underwriting standards and the debt ceiling stalement ought to inform investor behavior over the short-to-medium term.

Sears, the other major retail tenant in retail CMBS that remains under credit stress, is listed as a tenant in 197 loans compared to 254 loans for JCPenny. The two are frequently co-anchors of securitized regional malls.

J.P. Morgan priced the top rated portion of its JPMCC 2013-INN CMBS about 10 basis points wide to guidance.

Deutsche Bank and Cantor Fitzgerald priced a $813.87 million commercial mortgage backed securitization, COMM-CCRE11,

Goldman Sachs is in the market with a $675 million CMBS backed by a loan that is secured by the borrower’s fee interest in a Midtown Manhattan office building.

Morgan Stanley and Bank of America will issue a $1.3 billion CMBS conduit that has been assigned preliminary rating by Kroll Bond Rating Agency (KBRA).

Retail remains the best performing major property type in CMBS, according to Trepp; but over the next few months the JC Penny situation could weigh on the CMBS and CRE markets.

The delinquent unpaid balance of securitized commercial mortgage loans continues to shrink dropping to a 12-month low in August, according to Morningstar, while foreclosure activity increases.

J.C. Penney’s unexpected decision to raise capital sparked some concern among investors in commercial mortgage backed securities, as the retailer is the second largest tenant in this market, according to J.P. Morgan.