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.
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.
