Tag Archives: CRE CLO

The CRE CLO is Coming Back Soon:  Who You Gonna Believe, Me or Your Lying Eyes?

I’ve written extensively about the CRE CLO technology for a long time and why it is the best leverage technology across securitization markets.  With the sponsor typically holding up to 20% of the bottom of the capital stack, it represents the best alignment of interests between sponsor and investor.  For the sponsor, it provides unique, … Continue Reading

The CRE CLO Repurposed: Part II

I wrote about the disconnect between our CRE CLO technology and the task at hand (finding acceptable lever in an expanding leverage desert) in my last commentary.  While the CRE CLO remains the best form of match-term, non-marked-to-market finance for portfolio lenders and represents the best alignment of interests between sponsor and investor across the … Continue Reading

Fix the CRE CLO, Mr. Market:  Tear Down This Wall!

CRE CLO technology is languishing in the toolbox.  A combination of high interest rates, a mispriced legacy book, an anxious investor base and no real need to refresh capital until borrowers start borrowing again is largely responsible.  When a tool just doesn’t work anymore, you don’t throw it away, you fix it.  I like this … Continue Reading

2022 Golden Turkeys

It’s Golden Turkey Awards Time, Folks! Our Turkeys are a little late this year but hey, we’ve been busy worrying about the collapse of the world’s economy.  This is the 10th edition of our Turkeys and much thanks to our disorderly, often dysfunctional, regularly inscrutable and absurd government, polity and marketplace for continuing to provide … Continue Reading

Can We (Should We) Try to Fix the Conduit Before It’s Gone?

The conduit market does not absorb a lot of bandwidth in my day-to-day practice; I’m more of a CRE/CLO/warehouse/SASB/new products/innovation sort of guy.  But it’s painful to watch this marquee capital markets product wither away, a product that  transformed $200 billion of mortgage loans into securities in a single year.  That biz might limp over … Continue Reading

Prognosticators’ Regret

Just a few weeks back, I penned a sunny and optimistic piece about the growth of the CRE CLO market in 2022 and by implication, the general amicable economic conditions on which the growth of that technology would depend.  Being your basic risk-adverse type, I, of course, conditioned and limited my happy talk by excluding … Continue Reading

The CRE CLO Unleashed

Our fine little CRE CLO business has exploded over the past couple of years, hasn’t it?  Last year, around this time, I recklessly predicted for my friends at Commercial Mortgage Alert that we might hit $30 billion of issuance in 2021.   I was the outlier…by a lot.  Well, it looks like we’ll finish the year … Continue Reading

2021 Golden Turkeys

Welcome, dear reader, to our annual Golden Turkey Awards.  But for my commitment to absolute fairness and concern over the appearance of impropriety, I would have awarded the first Golden Turkey Award to Dechert for actually getting the Golden Turkey Awards done this year.  What a crazy year end.  The market is insane. On the … Continue Reading

A Modest Proposal: Why Can’t CRE CLOs Be More Like Corporate CLOs?

Here at Dechert, we have market-leading practices in CRE CLO as well as corporate CLOs, including broadly syndicated and middle market structures.  So, every day that I peer into these two alternate universes, I’m astonished at how different these two fundamentally similar leverage technologies really are.  Certainly, even at a modest remove, they look pretty … Continue Reading

2019 Golden Turkey Awards

As is our tradition here at Crunched Credit, each year, about this time, we award our Golden Turkey Awards.  Once again, I must say that we are utterly blessed with so many worthy candidates. The truly deserving have once again wrangled with vision and astounding persistence to earn a spot on our acclaimed list.  To … Continue Reading

Risk Retention and the CRE CLO

As we are just inking one of the very first pre-risk retention effective date risk retention deals (Potemkin Village anyone?), we are also seeing an increased flow of what are generically referred to as CRE CLOs. It’s time to consider how the Risk Retention Rule (the “Rule”) will apply to this growing market technology.… Continue Reading
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