Liquidated CMBS Loan Volume, Average Losses Plunge

CoStar reports:

volume of CMBS conduit loans liquidated in February retreated sharply, falling 43%...
...February liquidations were about $228 million--representing an average loss severity of 25.55% ...

So, two storm troopers decide to go in on an apartment together...

Qwikster

This is the dumbest thing I've ever heard of. I don't know how much NetFlix costs me each month - if it's less than $50, it's worth it. We use it in the car on the IPad to entertain the kid with movies, we use it at home via the Wii to watch movies and TV shows, and we get a DVD in the mail every week -- that integration and wide coverage is what made their model work.

If they feel like they have to split the services, that's fine - offer a combined service and a split service and handle the permissioning in a way that doesn't impact the customer.

So, now you have me - the ideal customer. Willing to pay top dollar for an integrated service and you're telling me that I now have to have two separate log-ins, two separate bills, and at least one of the companies is going to have a really stupid name that makes me think of Napster... I would guess that we are most likely to not sign up for the DVD service and just fall back on RedBox 100%, and for streaming movies/shows we've actually had a lot of success using Hulu, HBOGo, etc. - we actually pulled up a True Blood episode on our lap top and plugged the monitor output directly into the TV once with great success, although I understand there are more direct ways to do it. We'll probably maintain the NetFlix streaming service for some time longer, but I don't see it surviving long-term.

There is no known exposure to Netflix in the CMBS universe (I checked for the Los Gatos headquarters and the distribution centers that I could find, and none of the addresses showed up), I just had to get that out.

Russia - Just Like America

The top doctor in Russia stated today in the Moscow Times, "If a businessman visiting Moscow stays in a hotel, or an office, or a car, it is safe,".

It's cool, nothing to see here... oh, them, those extra dead people in Moscow, don't look at them. Look over there, ... no, not at Ozersk where the state of emergency was declared, at the big bunny, look at that bunny.

Nothing to see here, move along people...

CRE Prices Up 4% 3Q 2009 - MIT/CRE Index

Reuters reports

he 4.4 percent third-quarter increase in the MIT Center for Real Estate's transaction-based index (TBI) index is the first positive price change in the index in more than a year and the largest increase since the market downturn began in mid-2007.

"One quarter does not a trend make and we are still well below normal trading volume," David Geltner, director of research at MIT/CRE, said in a statement. "Nevertheless, this is the strongest sign of a bottom that we've had in two years."

CRE Prices continue downward, FDIC failed, and other news you already read somewhere else

Calculated Risk has a summary of the CPPI index which is now off another 3%, or 41% off the peak. Obviously some markets (*cough, cough* LA recent transaction was 70% below 2007 purchase) are worse than others. He has a cute little graph in there too showing how resi leads cre, but it wouldn't link for some reason.

CR also has a summary of the article out on BBG earlier today about how the FDIC failed as a regulator. Nothing really new here.

Move Along - Nothing to See Here ...

CMBS AAA spreads continue rallying strong going into next week where we have two CDO liquidations, both with CMBS collateral (both with AJ collateral, and one with significant AM colalteral).

Further down in credit is also starting to rally, but much less so, and trailing the AAA rally.

The CRE news flow has trickled to just a few drops and is mostly about funds starting up to buy "distressed debt" of various flavors, hardly any negative news.









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Nothing to see here...

"Remember now, we’ve been talking about contagion for almost a year now and just have not seen it," said Mike Willoughby, chief credit officer of Regions Financial Corp. "We may have seen a couple of apartment projects come through, but nothing really to speak of. So, even though we start to look at what unemployment may do, we have not seen it come through our portfolio yet."

Hotel Tango CoStar