Concerned about weaker underwriting in 2014 and 2015 CMBS conduits, rating agencies are demanding increased levels of subordination for what is known as the "junior" triple-A tranche.
Wells Fargo is marketing $955.2 million of securities backed by a portfolio of 68 loans secured on mostly office and hotel properties.
The senior tranche of 3.86-year, class A-1 notes, rated triple-A by Moodys Investors Service, Morningstar and Kroll Bond Ratings Agency, pays 115 basis points over interpolated swaps, for a yield of 2.4%.
Proceeds from the deal called BAMLL Commercial Mortgage Securities Trust 2015-200P will refinance $1.2 billion of existing debt.
Comparisons with single-borrower rental deals are difficult, but a second, and possible third multi-borrower deal are at hand.
Regulation AB governs registration, reporting and disclosure requirements for all things asset-backed. The Securities and Exchange Commission appears to be ready to update it significantly, but, nearly four years after changes were originally proposed, its not clear exactly what the Commission will do.
The proposal would introduce dissemination of trade prices for securities ranging from highly liquid credit card and auto ABS to smaller and more esoteric deals in asset classes such as time shares, to commercial mortgage-backed securities (CMBS) and highly structured CDOs and collateralized loan obligations.
As July came to a close, it was clear to everyone at ASR that the structured finance market was not about to take a vacation.
DFG Taps Goldman Vet, Barclays Bulks Up on CMBS, Ares Adds Jeffrey Kramer and the ASF Retains Mike Williams as Policy Adviser
Could higher yields end up deepening the investor base for asset-backeds?
Firm: 3i Debt Management
It's one of the biggest regulatory hurdles the market has faced since the financial crisis, and promises to bring wholesale changes to the structures of transactions as well as to the business models of managers. Clifford Chance partner Steven Kolyer weighs in.Current Issue