Wednesday, April 25, 2012

Maiden Lane III auctions within an auction?

*CORRECTION*Got it. They're basically using the Barclays proposed structure (It's joint between BARC, BAML, and NOM nom nom) to form MAXX 2012-MAX to CDO^2 to retranche the risk in the two current MAX A1 tranches for sale. They'll roll up the bids on their "new issue" to make a pass-through bid to the Fed. 

The competing bidding group appears to be Citi/Goldman's Sack/CS, and they are also soliciting bids from their clients that will effectively be passed through as a bid on the two MAX CDO tranches (and passed back in pro rata amounts if they get oversold), but they are not re-securitizing anything.

Both parties are charging a 0.25 mark up  for their strategy.

No one can blow up the original CDOs without consent of the MAX junior bondholders (purportedly DB) or paying off an interest rate swap to Barclays according to this one article.  And both of these strategies seem to put the CDOs far from any near-term scenario that would result in a flood of pure CMBS collateral on the streets.

Let me know if you have any more to add...

Prior post:
What is this MAX deal they're coming out with - it looks like BAML is basically trying issue a new deal to buy the two MAX CDOs from the Fed, structuring it, and charging a flat 0.25bps to investors to give them an opportunity to participate since the bidding list is limited. Is that accurate? I haven't spoken to anyone, just saw the messages flying around.

Tuesday, April 24, 2012

UBSCM 2012-C1 priced

These bonds priced today: A1 +40 A2 +80 A3 +120 *10year AAB +115 AS +195 B +260

Monday, April 23, 2012

CMBS stands for...

I'd seen Collision Mitigation Brake System, not that different from the Antilock Braking System (ABS), but today I got a news alert for the Center for Mennonite Brethren Studies (CMBS). A dinner is being held at the Wohlgemuth Music Education Center in Hillsboro, NC at 6pm on May 5th. I expect to see you there.

Another AJ shortfall - MLCFC 2007-6

The two MSKP Retail Portfolio loans in the deal, owned by MS RE Fund V and  Kitson&Partners, were modified into A/B notes resulting shortfalls totaling over $500k last month that ate into the AJ bond.

Wednesday, April 18, 2012

Best Bye Bye

More talk about Best Buy today:

  1. RetailTraffic Blog's Elaine Misonzhnik examines how unlikely a buy out is. You should click through - we're big fans of her over here.
  2. The WSJ article is patently absurd and suggests that it will be problematic hiring a CEO because the majority stockholder and founder remains as Chairman and keeps a tightened grip on the company. That is exactly what we need to change with CEOs (and Presidents) in this country, ones that do what the majority owners want them to do and they need to be able to share power with other executives. If I wasn't stealing access to the WSJ, I'd probably cancel my subscription over such hogwash. However, given my grey market access, I shall not complain too loudly and will likely continue reading it if is so that I may act defiantly stunned at their frequent misconception of the issues!

Maiden Lane III going to the auction yard April 26th

Blackstone to be the auctioneer, and its by invitation only.


Barclays Capital Inc.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
Merrill Lynch Pierce, Fenner & Smith Incorporated Morgan Stanley & Co. LLC
Nomura Securities International, Inc.  

So, the concerns about this supply burst is going to be a non-event more than likely.

Sunday, April 15, 2012

Best Buy Closure List

Following their initial announcement on 3/30, Best Buy posted a closure list, and surprisingly I only found 1 of the outstanding loans in CMBS deals. I may be off, because I am not attempting to do a thorough and complete job here, but I did for all loans named Best Buy that had matches on the city name from the list provided by Best Buy - then I further filtered the list by visually checking the street names. I'm sure some analyst who is actually getting paid to do research like this will post an update some day this week, but in the meantime please check out my advertisers!

Best Buy's official list here.

The Matteson store highlighted below is in BSCMS 2002-TOP6 as Best Buy Portfolio - Matteson IL (II) and actually paid of 6 months ago (but I listed it here just so we can all ponder on the horrible timing of that decision), and the West Dundee store listed below is in MLCFC 2006-3 as Best Buy West Dundee.

Store Name Address City State
Casa Grande 1004 N Promenade Pwy Casa Grande AZ
Lake Pleasant 10134 W Happy Valley Rd Peoria AZ
East Palo Alto 1751 E Bayshore Rd East Palo Alto CA
Westwood 10861 Weyburn Ave Los Angeles CA
Manteca 934 Perimeter Dr Manteca CA
Moreno Valley East 27220 Eucalyptus Moreno Valley CA
Ontario 4120 E 4th St Ontario CA
Pittsburg 4405 Century Blvd Pittsburg CA
Jamboree 2857 Park Ave Tustin CA
Arapahoe & Parker 15800 E Briarwood Cir Aurora CO
The Forum 9370 Dynasty Dr Fort Myers FL
Oldsmar 11655 W Hillsborough Ave Tampa FL
Fayetteville 128 Pavilion Pkwy Fayetteville GA
Loganville 4014 Atlanta Hwy Loganville GA
Addison 1038 N Rohlwing Rd Addison IL
87th & Dan Ryan 8900 S Lafayette Ave Chicago IL
Deerfield 200 S Waukegan Rd Deerfield IL
Matteson 4707 Lincoln Mall Dr Matteson IL
Mundelein 1100 N Rt 83 Mundelein IL
West Dundee 979 W Main St West Dundee IL
Speedway 10500 Parallel Pkwy Kansas City KS
Back Bay 360 Newbury St Boston MA
Wareham 2421 Cranberry Hwy Wareham MA
Inner Harbor 600 E Pratt St Baltimore MD
Hunt Valley 118 Shawan Rd Hunt Valley MD
Biddeford 405 Mariner Way Biddeford ME
*Brooklyn Center 5925 Earle Brown Dr Brooklyn Center MN
*Edina 3200 Southdale Cir Edina MN
*Hutchinson 1350 Hwy 15 S Hutchinson MN
*Lakeville 18350 Orchard Trl Lakeville MN
Rochester South 4540 Maine Ave Se Rochester MN
*Rogers 20870 Rogers Dr Rogers MN
Ellisville 15678 Manchester Rd Ellisville MO
Monroe 3151 W Highway 74 Monroe NC
Rocky Mount 1100 N Wesleyan Blvd Rocky Mount NC
Millard 12210 K Plz Omaha NE
East River Plaza 517 E 117th St New York NY
Steelyard Commons 3506 Steelyard Dr Cleveland OH
Salem Mall 5031 Salem Ave Dayton OH
Caguas Las Americas Expry PR52 Zafiro Caguas PR
Middletown 890 W Main Rd Middletown RI
Hickory Hollow 5255 Hickory Hollow Pkwy Antioch TN
Techridge 12901 North I-35 Austin TX
*Woodlake Parkway 6218 Woodglen San Antonio TX
Landmark Mall 5901 Stevenson Ave Alexandria VA
Cosner's Corner 9745 Jefferson Davis Hwy Fredericksburg VA
East Richmond 4410 S Laburnum Ave Richmond VA
Mill Plain 16611 Se Mill Plain Blvd Vancouver WA
* indicates stores notified March 29, 2012 of closure plans      
Note: Two stores in Kansas City, MO (Metro North) and Scottsdale, AZ (Shea) permanently closed in February 2012.

Wednesday, April 11, 2012

SEC Enforcement is a joke

There are multiple articles in the WSJ today about the SEC cracking down on perpetrators of the Great Recession and digging into Hedge Fund data to find fraud (call me cynical, but the very fact the funds in question filed documents with the SEC in the first place would lead me to believe that they would not intentionally file fraudulent documents that were obvious frauds in the first place - seems like a pretty bad starting place), which makes it ironic that I got an email from a guy named Alex Barta today.

Alex Barta called me a month ago offering me a once in a lifetime investment opportunity with 1200% annualized yields in the first month and all he needed was $5,000. It was an oil & gas play called the Warner project and I knew in the first 10 seconds it was a scam but feigned interest and collected as much data as I could and scheduled a follow-up call a week later with him and requested an email with more information. I hung up with him and immediately called the SEC - the guy on the phone thought it sounded like an urgent matter and forwarded me to a ladies voicemail and I left a message. I decided I'd also fill out their online whistleblower reporting form, and then also filled out a form with the state securities regulator, and sent an email to FINRA. I included all of his contact information, documents he sent, aliases, and information I found about him on the web (he's been swindling people for a long time!). I also offered to help get him on the record at my scheduled follow up meeting.

The only response was a letter from the state regulator via snail mail asking me to fill out a form. I got no call back from the SEC, no letter, no follow up at all. What are they doing if not following up on a really hot lead like this? (oh yeah, looking at porn, and now reviewing Reg D filings for missing information - brilliant!). Not only did I have a vast amount of information that this fraudster had emailed me, but I was offering to help catch him in the act! I spent over 3 hours researching him and filling out the forms, doing the right thing I thought, and providing a detailed case against the guy both in my interaction but also reflecting how he had been doing it to other people as well, and they don't call me back?

For more on Alex Barta, Patriot Financial Group, and others involved in their scams see
here, here, and here.

His email today has the subject line "USD $500K+ DIVIDEND PPP FUNDS DO NOT MOVE. NO ACCOUNT BLOCKING." I'm not going to waste the time reporting it again, but maybe potential victims will do a quick google search and see this post before he scams them out of their money.