KBRA Releases CREFC Summit-West: Day 2 Recap

By Staff 6 years ago

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases a recap of the final day of the
2019 Commercial Real Estate Finance Summit-West conference held on May
7-8 in Santa Monica, California.

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CREFC Summit-West Day 2 offered six panels with a full schedule of panel
discussions on a variety of topics, ranging from commercial real estate
collateralized loan obligations (CRE CLOs) to the underwriting standards
in today’s market.

Some of the key takeaways from the panels that took place on May 8 are
as follows:

  • The CMBS lending market faces tremendous competition from life
    insurance companies, debt funds, and new players. Securitization
    volume has been decreasing, while creative lending strategies along
    with collaboration with other lenders are vital to deal flow.
  • The background and experience of collateral managers are paramount in
    managed CRE CLO transactions. CRE CLO issuance for this year is
    forecast to total between $14 billion and $18 billion.
  • There is a tremendous amount of excess capital which has resulted in
    hyper lender competition, giving borrowers more bargaining power.
  • The consensus among servicers is that the loan structure at
    origination is the source of servicing challenges and negative
    borrower experiences. Progress and improvement can be made with
    educating lenders and borrowers on the structure and process upfront.

To read the full recap, click here.

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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.

Contacts

Analytical:
Christina Chou,
Associate
(646) 731-3387
cchou@kbra.com

Caitlin Parrella, Associate
(646) 731-3310
cparrella@kbra.com

Nitin Bhasin, Senior Managing Director
(646) 731-2334
nbhasin@kbra.com

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