Wednesday, August 21, 2013

LBUBS 2007-C2 AM Shortfall, AJ losses

You'll recall this deal is the one where Orix liquidated a large portion of problem loans at one time last month, creating a boon for credit IOs, but wiping out all the bonds up to the AJ, and 10% of the AJ itself.

This month, shortfalls were back (obviously) and ate into the AM class and undercollateralization led to additional losses to the AJ. Barclays was out with a note that highlighted that the AJ interest shortfall was likely to be permanent at this point.

Monday, August 12, 2013

JPMCC 2008-C2 - The Promenade Shops at Dos Lagos

This $123mm loan finally liquidated after going delinquent the same year it was sold to the market in JPMCC 2008-C2, resulting in a >100% loss and wiping out 12 tranches in the process. The property sold for $29.7mm in gross proceeds, but that was only enough to cover the servicer advances, selling costs,  and a portion of the ASER. The remaining $10.8mm of ASER was left unpaid.

Barclays has an execellent summary out about it with links to the other big losses in recent months, Silver City Galleria and Tri-County Mall.

For previous stories we wrote on this deal, click here.

And, yes, because this JP deal wins the worst CMBS Deal Evah award, we will once again display an image of JP Morgan's namesake expressing his feelings about the loan.
When I find the originator at my bank who made this loan, I'm going to gut his belly open like the pig he is (exhibits thrusting motion of knife at hip level) and place his head on a pike out front of the office.   -misattributed to J.P. Morgan

Friday, August 9, 2013

Gansevoort Park Avenue hotel receiving criticism, threats to shut off its liqour license

This is important because it's a big pari passu CMBS loan in CGCMT 2012-GC8 and GSMS 2012-GCJ9.

More importantly they allegedly have naked girls and 24/7 parties at the pool on the roof, and we're sending someone over pronto to confirm this activity.

As reported by CBS .

Wednesday, August 7, 2013

SEC Investigating S&P for 2011 Ratings Snafu

As you'll recall, back in 2011 S&P abruptly pulled ratings from a new issue deal citing "discrepancies in how its methodology was being applied". Then they were radio silent for a year before meekly announcing that the discrepancy was insignificant and they were back to rating deals.

Bloomberg has an article out today that "three people with knowledge of the matter" said that the SEC is investigating how S&P rated a certain CMBS in 2011. I think we can all guess which one that was.

This latest inquiry is separate from the 2/4/2013 suit brought by Justice Department against S&P, which is focused primarily on resi deals from 2004 - 2007.

**Update** For whatever reason two robo-users have chosen this one post to spam with unwanted content in the comments section. It waste a ton of my time deleting them everyday so I'm closing the comments on this one post and reporting the two users. It goes against my general rule of allowing any comments to come in, and not making any changes to posts - even if I make an error I'll leave it, or at least acknowledge it, and then include an updated statement. However, I'm not going to let a robot take over the comments section either. What an arsehole.