Soprano hits sour note

摘要

The price of synthetic CMBS infinity soprano 2007-1's Class A notes dropped more than four points last week as an updated valuation of the deal's largest loan showed a 23% decline in two years. The EHE Pool 1A loan, backed by secondary quality German properties, was reassessed lower at €185.5m, pushing the bonds to around 92 by Friday. They started the week at 96.50/97.00, a trader said. The loan is already in default, and in breach of LTV covenants as the portfolio value has slumped. It was originally assessed at €532.352m backed by 45 assets, and 20 have since been sold at various stages.