KBRA Releases CREFC Day Three Recap

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Jun 12, 2019 05:45 pm
NEW YORK -- 

Kroll Bond Rating Agency (KBRA) releases the recap for day three of the CREFC conference. The third and final day of the conference involved a program consisting of three sessions, including an education session called CMBS 201: Servicing Participants and Processes.

The opening session of the day—Commercial Mortgage-Backed (In)Securities: Challenges and Opportunities Facing CMBS—delved into the current state of the CMBS market and started with a discussion of issuance volume. Panelists noted CMBS issuance, particularly in the conduit space, has been adversely impacted by a variety of factors, including government-sponsored enterprise (GSE) originations, a shift in property type allocations, a limited pool of maturing CMBS loans and an increased number of financing sources. Notwithstanding issuance concerns, one panelist noted credit metrics are healthy, credit enhancement levels are stable, and the conduit space is “very investable”.

Panelists also advanced numerous ideas on how to improve the CMBS product offering, including: reversing the placement of amortization and interest-only (IO) periods during the loan term (aka, IO on the back end); reducing the multiple levels of review by servicing parties; reallocating certain duties from the master to special servicer and encouraging a stronger relationship between the two parties; and standardizing the definition of common terms in the PSA (including net cash flow and loan triggers). Overall, the panelists identified many challenges and opportunities facing the CMBS market and noted that, since the Great Financial Crisis and in the wake of implementing risk retention, the market has proved to be resilient.

The day’s second panel—At the Table or on the Menu?: CRE Government and Regulatory Update—discussed political and regulatory matters influencing the commercial real estate (CRE) capital markets. Key topics included trade wars with China and Mexico tariffs, the upcoming 2020 election, and CRE regulatory policies: HVCRE, Opportunity Zones, GSE reform, CECL, beneficial ownership, CFIUS, and HMDA.

This concludes our coverage of the June 2019 CREFC conference. KBRA was proud to sponsor the event, along with over 30 other firms.

Related Publications: (available at www.kbra.com)

CONNECT WITH KBRA

Twitter
LinkedIn
Download the iOS App
YouTube

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Analytical:
Maverick Force, Associate
(215) 882-5904
mforce@kbra.com

Russell Barber, Associate
(215) 882-5873
rbarber@kbra.com

Santiago Alvarez, Associate Director
(215) 882-5851
salvarez@kbra.com

Mike Brotschol, Senior Director
(215) 882-5853
mbrotschol@kbra.com

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).