March 2013

The FDIC’s new rules (promulgated per the requirements of the Dodd-Frank Act) for calculating deposit insurance assessments for insured depository institutions, including "large institutions" and "highly complex institutions," are set to become effective on April Fool’s Day, 2013. No kidding. As institutions of this type are active investors in CLOs, particularly the “AAA”-rated tranche of CLOs, there has been significant consternation among market participants on the immediate and long-term effect of such new rules.Continue Reading CLO Update: New FDIC Rules on “Higher Risk Securitizations”

Among the more technical topics we cover in this Blog, we keep an eye on Europe as we fundamentally continue to worry that Europe’s disease could infect our markets. As I write this, Cyprus is trying to sort out the terms of the proposed EU bailout for the banking sector which is eight times the size of the GDP of the whole darn island. The US commodities and stock markets have fluttered in response and may continue to flutter for several days, but now a deal has been announced and the betting is Cyprus will drop out of the headlines and become yesterday’s news. We’ll be back to business with nary a backward glance at Europe; until next time.Continue Reading Cyprus: Not the Archduke Ferdinand Moment, This Time

Last week, we and a few of our colleagues here at Dechert attended CREFC’s 2013 Distressed Debt Summit. Echoing the mood at January’s CREFC conference, the mood at the NY Athletic Club last week was upbeat about the CMBS market as a whole but the general sentiment, with respect to the distressed debt market, is that good deals (in other words, deals worth making) are harder and harder to come by.Continue Reading Reflections on the 2013 CREFC Distressed Debt Summit

The warm weather is not the only thing descending on New York City this week as CREFC hosts its annual Distressed Debt Summit at the New York Athletic Club overlooking Central Park. March in New York City is famous for the Big East Tournament (speaking of distressed…), St. Patrick’s Day parades and love blooming along with the flowers. But it won’t be all buzzer beaters, green beer, horse carriage rides and proposals in the park as industry leaders look to discuss the market trends and opportunities in the distressed debt market for 2013.Continue Reading Distressed Debt Conference in Bloom in NYC

Early last month, in Borough of Merchantville v. Malik & Son, LLC, 429 N.J. Super. 416 (App. Div. 2013), the New Jersey appellate court held that a condemning authority, under the State’s eminent domain law, was not required to negotiate with a mortgagee which had obtained a final judgment of foreclosure on the relevant property, was in possession of said property and had the right to sell said property at a sheriff’s sale. Additionally, the appellate court held that the property owner’s express rejection of the condemning authority’s offer to purchase its property and invitation to discuss more reasonable compensation was inadequate evidence that the property was worth more than the amount offered by the condemning authority and constituted a rejection of such offer permitting the condemning authority to proceed with litigation.Continue Reading Left Out in the Cold: New Jersey Court Holds Condemning Authority Not Required to Negotiate with Lenders in Eminent Domain Proceedings