As I’m writing this, I’m getting ready to attend CREFC’s 30th New York City Annual Conference and bacchanal. Once again, we will enjoy the company of our confreres, we will network, we will get educated (yes, CREFC members do actually attend substantive sessions) and will all enjoy the curious joys of the Marriott Marquis (are
Securitization
Trading Is Not a Dirty Word (CRE CLO)
Trading Is Not a Dirty Word and Other Thoughts on a More Manageable CRE CLO
As we begin to reflate the CRE CLO business this year with shrinking spreads and hopefully shrinking SOFR, we need to think of this as CRE CLO 3.0. This business, this technology, which is truly a brilliant way to deliver…
The SEC As Bad Santa: The Proposed Securitization Conflict Rules
The current administration’s legislative initiatives are largely bottled up in a split Congress, so the path toward achieving the White House’s policy priorities runs almost exclusively through the executive order and rule-making process and boy, have they worked it hard.
But Santa is coming down the chimney delivering lumps of coal so often these days…
Auto ABS: Uncertainty and Excitement Ahead
Recently, Dechert Partner Sarah Milam partook in an auto ABS panel discussion at ABS East in Miami, Florida. Sarah and four distinguished panelists discussed the state of the ABS auto loan market, issuance, yields, collateral performance, ESG trends, and deal structures. Sarah sat down with Associate Griffin Hamilton to recap the conference.
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SASB: The (Shotgun?) Marriage of Mortgage and Mezz
There’s a lot of reasons to structure a large loan destined for securitization as a mortgage in part and a mezzanine loan in part. Sometimes it’s simply that the borrower is needy while the capital markets are charry. In that case, the lender whacks up the credit into a mortgage loan for SASB execution and assumes (hopes) there’s someone out there with sufficient acumen, optimism or naivete to buy the mezzanine loan. But sometimes, there are other reasons to divide a loan into a mortgage and mezz.
Continue Reading SASB: The (Shotgun?) Marriage of Mortgage and Mezz
CMBS On The Perp Walk: We Are Being Set Up!
Folks, last week I made the point that it’s extremely important to confront negative narratives about our industry before they take hold, creep into the interstices between things that are true and then somehow ossified into received wisdom. So, taking on board my own advice, which shockingly I find compelling, I want to sound the alarm about a recent Wall Street Journal story concerning the misstatement of net operating income in our industry (I only wish I could qualify as an influencer here. I read about two teens with millions of followers this weekend; they talk about stuff like..their hair. Is there anyone out there that wants to know about my hair?).
Continue Reading CMBS On The Perp Walk: We Are Being Set Up!
Volcker Rule Amendment: Trending Towards Flexibility
After much anticipation and expectation, on June 25, 2020, the Federal Reserve Board, CFTC, FDIC, OCC, and SEC (the “agencies”) finalized an amendment to Section 13 of the Bank Holding Company Act, commonly known as the Volcker Rule, which among other things prohibits banking entities from sponsoring or acquiring ownership interests in “covered funds.” Covered funds are entities that would be investment companies but for exemptions provided under Sections 3(c)(1) or 3(c)(7) of the Investment Company Act, and generally include private equity funds and hedge funds. The final rule, which goes into effect on October 1, mostly follows what the agencies had signaled to everyone back in the mask and quarantine-free days of January when it released proposed changes that are largely adopted in the final rule.
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Rick Jones on The TreppWire Podcast
Crunched Credit’s own Rick Jones spoke with the TreppWire team for their latest podcast. Covering everything from the future of CMBS to the Great Recession, the conversation was wide reaching. Be sure to tune in for more on Rick’s interview with Sam Zell, how we’re headed for a “square root” recovery and why…
Original[s] Sin
The closing deadline is quickly approaching! Which of the following two processes would you choose? Would you:
(a) create a pdf of signature pages and request that parties provide a digital signature and return via email, or
(b) print out multiple sets of paper copies of each signature page for each transaction document in triplicate, then… ship each signature page packet to each signatory for the transaction (sending in tandem, an email with the overnight delivery tracking numbers) with a pre-addressed and prepaid return envelope and instructions to sign and return on a very tight timeline with no room for error, then…wait by the mailroom for those signature pages to come back.Continue Reading Original[s] Sin
A Walk Down Memory Lane with the Liquidating Trust
One of the pleasures of life is re-encountering old friends, catching up on what’s happened while your lives have gone their separate ways, reminiscing about the good old days and reconnecting. It comes back so fast, it’s like you never were apart.
Me and the Liquidating Trust had just such an experience the other day.Continue Reading A Walk Down Memory Lane with the Liquidating Trust