One unassailable fact is that securitisation has a hugely important role to play when it comes to financing commercial real estate (CRE). Simply put, no other source of CRE finance can provide the high level of openness and transparency that can be afforded by securitisation. Indeed, as demonstrated by the recent financial turbulence, the ability
Tranching of debt is critical for the breaking wave of CRE refinancings
The tranching and splicing of debt secured by commercial real estate (CRE) is likely to become an increasingly important part of the CRE lending market as it begins to grapple with the sobering reality of a breaking wave of refinancings coupled with a serious deterioration in valuations.Continue Reading Tranching of debt is critical for the breaking wave of CRE refinancings
European CRE CLO – time for the market to brace for lift-off
Wow, what a year 2022 has been! Typically when I reflect on all things structured CRE related, I have more often than not found myself applying a metaphor of a roller coaster, which is suitably apt given the huge swings in market activity experienced over the past twenty years or so. 2022 has proven to be
Slicing and dicing CRE Debt for the greater good of all
In the wake of the Global Financial Crisis (GFC), highly structured CRE debt transactions featuring multiple lenders and including a securitisation received a lot of criticism. There are myriad of justifiable reasons for this, but the chief complaint generally centred around the fact that at times of distress and a need for urgent action to
Bridge loans set to fuel the development of the European CRE CLO
Read time: 3 mins 40 seconds
One of the desirable features of a CRE CLO is the ability of the collateral manager to buy and sell loans at will or, going one step further, originate loans directly out of the securitisation structure itself. Although the economic merits of such a feature are emphatic, this feature
Securitisation – time to put on its hero cape!
The last few weeks have proven to be a tumultuous period for the capital markets, and with it a stark (and painful) reminder has been duly delivered on the impact that they have on all aspects of business and the wider economy. Securitisation has also shown that it is not immune to this turmoil demonstrated
Securitisation type technology showing a glimpse of its mettle
Estimated read time: 2 minutes 45 seconds
It would be fair to say that when it comes to securitisation, I have always been very upbeat about the huge potential of this technology and the integral role that it can play. This is not only in providing a cheaper form of credit for borrowers but also
CMBS & CRE CLO – Heroes of the Future
Estimated reading time: 5 minutes
If the latest forecasts are true, then we will imminently be subjected to a long and deep recession and therefore now is the opportune time to draw comparisons against previous downturns and lessons learned. Indeed, given the nature of these beasts, there is always a chief protagonist or metaphorically
CRE hedging – friend and foe
Read time: 5 minutes
For better or for worse, interest rate hedging instruments have an important role to play when it comes to financing commercial real estate (CRE). For the past decade or so, these products have enjoyed a relatively low profile following the excesses of the period leading up to the global financial crisis
CRE CLO versus the old and outdated brush
When speaking to market participants and commentators about Europe’s first ever CRE CLO, more frequently than not there is an inference that the Starz Real Estate CRE CLO is the first since the global financial crises (GFC). This is certainly a view that has merit, thanks to the fact that on the eve of the