Relief, But Also Confusion, as Terrorism Insurance Renewed

The commercial real estate market breathed a sigh of relief when Congress finally renewed the Terrorism Risk Insurance Act on Jan. 12, nearly two weeks after it had expired. But borrowers and loan servicers are still dealing with headaches created by this short gap in coverage.


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SocGen Plots Return to U.S. CMBS Market with New Hires

– Wayne Potters and Adam Ansaldi will head the Societe Generale CMBS team, based in New York.

GE Sells $775M Securitization of Dealer Floorplan Receivables

– The class A, three-year triple-A notes issued by GE Dealer Floorplan Master Note Trust 2015-1 pay a spread of 50 basis points over one-month Libor.

OneMain Upsizes and Prices $1.23B Personal Loan Securitization

– The deal, OMFIT 2015-1, sold the class A notes with a weighted average life of 3.5 years at a spread of 210 basis points over interpolated swaps. The notes yielded 3.2%.

Peer-to-Peer Lender Snags Moody’s Rating

– Moody’s Investors Service has assigned a deal bundling loans originated via Prosper's P2P platform preliminary ratings of ‘Baa3’ on the one-year, Class A notes and ‘Ba3’ on the 2.88-year, class B notes.

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Featured Articles

Ending Hated 'Disparate Impact' is a Tough Sell for High Court

– The industry may be hoping the Supreme Court kills the unpopular “disparate impact” theory via a pivotal Texas case argued Jan. 21, but some of the justices’ statements left analysts skeptical that the legal basis used in fair lending cases will end.

The Swaps Rule Keeping ABS Professionals Up at Night

– Forget the swaps pushout; structured finance professionals are much more concerned about a proposal that would require ABS vehicles to post variation margin — basically additional cash — everyday on the swaps they tend to engage in.

New Issuers Add Lift to Aircraft Lease ABS

– While larger lessors such as Aercap and GE Capital Aviation Services have generally found funding via general corporate obligations to be more attractive, securitization has become an important source of capital for some smaller firms that would have difficulty tapping the high yield bond market.

Mid-Sized Managers Grab Bigger Share of U.S. CLO Market

– Moody's Investors Services' rankings for the fourth quarter of 2014 still includes many familiar names, but the industry's heavyweights lost ground to some medium-sized managers.

Worst May Be over for Asset-Backed Commercial Paper

– An economy on the rebound and greater regulatory clarity are two leading catalysts. Another is the prospect of rising interest rates, which should make it more attractive to issue short-term debt to fund longer-term assets, such as consumer loans and other kinds of debt that will eventually be securitized.

Single Family Rental Firms Splinter Along Funding Lines

– Recent deals have included around 50 to 100 properties per transaction, but bigger deals, one including as many as 2,500 properties, are beginning to take place; Blackstone Group's global head of real estate Jonathan Gray has expressed interest in buying up public REITs.

Freddie Expands Small Balance Lending Plan to Include Banks

– Freddie Mac in the next month plans to approve three more lenders, including one bank, to make multifamily loans between $1 million and $5 million for GSE purchase and securitization, according to an official. Banks were not initially courted.

Real Estate Lenders Paying Premiums to Trade Whole Loans

– Commercial real estate lenders are quietly acknowledging regulators' fear of concentration risk by swapping out new loan pools with assets they didn’t underwrite themselves – and more often than not, they're paying a premium to do it.

European Banks Re-Marketing Retained Deals

– European banks have begun re-marketing securitizations that they had retained as collateral for central bank funding, and this is expected to accelerate in 2015.

What You Need to Know About Chapter 11 Reform

– The American Bankruptcy Institute’s Commission to Study the Reform of Chapter 11 has released its long-awaited report; it includes a number of proposals that could reduce recoveries for secured creditors, including collateralized loan obligations

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Coming Due: How CMBS Market Will Handle $300B Maturing 2015-2017

The $300 billion of CMBS maturing over the next three years will test the recovery of the capital markets.

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