This article was published by Matthew T. Clark and Stewart McQueen.
The 2010 CREFC Annual Convention has begun in earnest. Day 1 began for many attendees with 
a meeting of the Securities and Loan Investors Forum. This meeting included a lengthy discussion of the Fair Value Purchase Option and a perceived conflict of interest
Last Friday I moderated a panel at the 11th Annual IMN Real Estate Opportunity and Private Investment Forum in New York. The two-day event consisted of about 40 separate concurrent panels and drew over 800 industry participants. The topics covered revolved around distressed debt investing – loan workouts, exit strategies, tranche warfare and distressed asset sales.
My panel‘s topic was “Loan -To-Own” strategies. Our conversation began with the panelists discussing the common characteristics of successful loan-to-own transactions. The common areas of focus included the importance of stringent property-level due diligence, exacting legal due diligence with respect to loan documents, a realistic understanding of foreclosure processes and timeframes, accurate modeling of acquisition and stabilization costs, and the importance of the local expertise that can be gained from local developers and operators.Continue Reading Distressed Debt Conference
We’re looking forward to the 2010 June Convention of the Commercial Real Estate Finance Council (formerly the Commercial Mortgage Securities Association) next week at the Waldorf-Astoria in New York City. From June 14th to 16th, over 700 lenders, borrowers, investors, fund managers, servicers, attorneys, and other industry participants will gather to discuss current topics in
There’s a headline to grab attention. It’s been reported that several Chinese and other non-domestic and non-traditional lenders are rushing across the American landscape looking for deals. Take a look at the WSJ article of June 2 about the International & Commercial Bank of China’s recent loan to GE. ICBC has over a trillion dollars of assets, it’s reported to be the most profitable bank in the world and it’s ready to lend. Maybe this is just a “no duh” moment, but what a terrific business strategy for any lender not damaged by the late unpleasantness (a Southern expression still in use about the Civil War but appropriate here)! If the gnomes of Basal get their way and require US and European banks to put up massive capital over the next couple of years, strong, unimpaired semi-sovereign banks may be the best ticket in town.Continue Reading Chinese Banks Lend in the U.S.