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Private executions, club deals, non-disclosure agreements and bilateral executions all have their place in the arsenals of syndicate desks and issuers, particularly in the securitization market. But taken together, they are harmful to the market.
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Investors in non-performing loan securitizations are a rare find, so issuers which can move early might be better placed to grab some of the limited capital available.
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There's no true political will to end the dominance of Freddie Mac and Fannie Mae in RMBS. The talk in Washington of restoring the private label RMBS market is driven more by a philosophical push against smaller government than by a coherent plan for change, or a willingness to face the trade-offs it requires.
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The UK’s RMBS market shrugged off Brexit. Whether it can survive the Bank of England’s new Term Funding Scheme (TFS) is another matter.
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Redistributing non-performing loan risk among Italian shareholders, pension funds, banks, retail investors and the government will make Italy’s banking sector worse, not better.
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Increased lobbying efforts to encourage the recapitalisation of government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac in the near future are likely to be futile given the political environment in the US.
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Nobody likes it when markets seize up, but the post-Brexit plight of the UK commercial property funds shows markets working well, not badly. It also demonstrates why markets, not banks, are the best providers of financing.
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The Basel Committee on Banking Supervision’s updated securitization framework shows strong alignment with the European Commission on risk weights — but adverse discussions in the European Parliament mean that the chances creating the elusive 'level playing field' for high quality securitizations looks slim. -
The news that seven open ended commercial real estate funds froze redemptions this week should come as no surprise. Funding highly illiquid, chunky investments with cash that investors can pull at short notice is a flawed strategy.
