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.

UBSCM 2012-C1 priced

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

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.

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.

Bidders:

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.

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.

World Financial Center evacuated due to suspicious package...

While you were out...

Can I not take a few days off without the entire market shifting more than it has the prior 3 months?


Maiden Lane III supply pushed AJ prices down as much as 5 points. The collateral  includes two CDOs that are primarily collateralized by at least $2.8 billion of AJs and $2.6mm in AMs. Someone commented that it was more like $8 billion of AJs, but I honestly haven't looked yet. Both are big numbers. (DB, comments, news)

DB took a look at 1Q 2012 performance and made a few conclusions that were interesting.

1. Approximately 50% of loans maturing in the 1Q paid off with a <2% loss.
2. Smaller loans (<$10mm) had more success paying off with a 45% refi rate, compared to a 27% refi rate on >$50mm balance loans.
3. Hotels and MF had the highest refi rates, of approximately 42% and 40%, respectively.
4. CWCapital continues to exhibit the slowest liquidation rates and longest disposal timelines

$103.8mm Transbourne Center and Arrowhead Crossing loans pay down in MSC 2005-HQ6

$1.3 billion Ala Moana refied - CD 2007-CD4, CD 2006-CD3, CWCI 2006-C1, CGCMT 2007-C6, CWCI 2007-C2 E, CGCMT 2006-C5 (CREDirect)

Office Rents were up 5.6% in Midtown South on Tech Demand (Bloomberg)

$117mm Nashville Multifamily Portfolio's (LBUBS 2007-C7) 4 properties are listed for sale. Owned by Lehman/Apogee New Dawn partnership. No loss expected. (Barclays)

Lincoln Properties won 1000 Wilshire Boulevard (LBFRC 2007-LLFA)

Oaktree raised $1billion (Oaktree RE Opportunity Fund V) to buy both hard assets and debt domestically and internationally (as much as a 35% allocation overseas) (CREDirect)

701 Gateway Boulevard ($46.9mm loan LBUBS 2007-C3) was sold to DivocWest. (CREDirect)
Additional loan sales are circulating:

1. 801 North Brand ($70.5mm, MPG, GSMS 2005-GG4)
2. 700 North Central ($27.46mm, MPG, GSMS 2005-GG4)
3. Sacramento Corporate Center ($40.75mm, Chase Merritt, GCCFC 2007-GG9)
4. Hookston Square ($30.5mm, Griffin Capital, GCCFC 2005-GG5)