Bankers are defending the industry's aggressive push into commercial real estate despite regulators' warnings about the growing risk and the potential for losses in that sector.
With only $16 billion in issuance in January, the market for new securitizations fell by $2 billion from December and is less than half of the new structured finance supply from January 2015.
The deal, dubbed CGCMT 2016-GC36, will issue super senior notes rated triple-A by Kroll Bond Rating Agency and Fitch Ratings that benefit from credit enhancement of 30%; the so-called junior-A notes, which benefit from 25% credit enhancement, are also rated triple-A.
The Department of Housing and Urban Development is reducing the mortgage insurance premiums it charges on Federal Housing Administration multifamily loans to encourage the renovation of affordable housing units and promote energy-efficient upgrades.
WFCM 2016-C32 is backed by 112 fixed-rate loans secured by 152 commercial properties; the inclusion of low-leverage cooperative loans offsets the impact of other loans with LTVs as high as 136%.
Regulation AB governs registration, reporting and disclosure requirements for all things asset-backed. The Securities and Exchange Commission appears to be ready to update it significantly, but, nearly four years after changes were originally proposed, its not clear exactly what the Commission will do.
The proposal would introduce dissemination of trade prices for securities ranging from highly liquid credit card and auto ABS to smaller and more esoteric deals in asset classes such as time shares, to commercial mortgage-backed securities (CMBS) and highly structured CDOs and collateralized loan obligations.
As July came to a close, it was clear to everyone at ASR that the structured finance market was not about to take a vacation.
DFG Taps Goldman Vet, Barclays Bulks Up on CMBS, Ares Adds Jeffrey Kramer and the ASF Retains Mike Williams as Policy Adviser
Could higher yields end up deepening the investor base for asset-backeds?
Firm: Broadmoor Consulting LLC
In the news: Marketplace Lenders Are a Systemic Risk
Property Assessed Clean Energy loans have been available in Florida since 2010, but lending, as well as securitization of these loans, has lagged far behind California largely due to a series of lawsuits. A ruling by the Florida Supreme Court in October could change that.Current Issue