Will coronavirus permanently change CRE lending?
Commercial real estate lenders have to consider not only how they’ll weather the COVID-19 downturn, but whether worker and consumer habits have changed for good.
Commercial lending
Wall Street quietly telling companies not to draw their loans
Some corporations are willing to oblige, turning instead to new, pricier term loans or revolving credit lines rather than tapping existing ones, industry officials say.
Direct lenders mull concessions to borrowers in first major test
Direct lenders around the world are talking with borrowers about easing interest payments, waiving penalties and relaxing covenants as they assess the growing damage to their portfolios caused by the coronavirus pandemic.
Banks tolerate credit-line draws in coronavirus crisis — for now
Draw-downs on C&I credit more than quadrupled in a seven-day period ended March 25. Lenders may try to rein them in if the crisis drags out, but legal precedent isn’t on their side.
Online lenders seek to balance the needs of borrowers, investors
While LendingClub, Prosper, Avant and SoFi are giving existing borrowers breaks in the short term, they're considering tightening credit as the coronavirus outbreak threatens to drag the economy into a recession.
Lenders back push from hotels to access crisis-era program
With seven in 10 rooms sitting empty amid the coronavirus outbreak, hotel and banking groups are urging policymakers to open up the Term Asset-Backed Securities Loan Facility.
Distressed debt balloons to almost $1 trillion, nears 2008 peak
The amount of distressed debt in the U.S. has quadrupled in less than a week to nearly $1 trillion, reaching levels not seen since 2008 as the collapse of oil prices and fallout from the coronavirus shutters entire industries across the globe.
Opinion: Fallen angels are coming and the Fed can’t save them
Dramatic Fed intervention may steady some markets, but unless something changes — and, judging by the last two weeks, it very well could — the central bank won’t be there to save fallen angels. Which brave investors will step up?
Too late now to hedge risks, $16 billion credit manager says
Red flags and warning signs from February should have prompted investors to make “all the wise decisions" at that time, says Ville Talasmaki of Finnish financial group Sampo Oyj.
Fed announces aggressive actions to boost liquidity amid virus turmoil
The Federal Reserve committed Monday to conducting more asset purchases of Treasury securities and mortgage-backed securities and announced $300 billion in new financing for credit facilities.
Leveraged loan prices suffer worst setback on record
While collapsing market prices do not present immediate worries for CLO managers, the prospect of future downgrades and defaults becomes more problematic.
By
Glen Fest
Small businesses could rely on bridge loans for coronavirus downturn
With small businesses feeling the financial scourge of the coronavirus, bridge loans could be the direction they turn to keep things afloat.
CRE debt outstanding hits crisis-era high as new uncertainties set in
Add continued growth in commercial and multifamily mortgage debt outstanding to the list of things that the economic fallout from the coronavirus might affect.
Bankers seek defined role in disbursing emergency SBA loans
Lenders are rallying around a bill from Sen. Rubio that would give them access to another $50 billion under the 7(a) program. It could face obstacles in the House, where a bill favors direct lending by the Small Business Administration.
Coronavirus risks grow for key CLO hotel/casino loan obligors
Prices for major term loans issued by operators such as Marriott International, Hilton Worldwide and Caesars Entertainment have fallen in recent weeks as investors grow worried about the impact of the COVID-19 outbreak on global tourist and business travel.
By
Glen Fest
Virus could deal blow to leveraged loans. What’s that mean for banks?
Banks may be protected from a direct hit, but they have invested in vehicles that include such loans, potentially exposing them to defaults.
S&P: CMBS delinquency rates declined in February
The falling rates continue a three-year trend of improving performance across numerous commercial mortgage sectors including multifamily, office and retail.
By
Glen Fest
Loan funds continue decline amid sell off
Exchange traded funds tracking leveraged-loan performance saw sharp declines on Monday, following a Friday leveraged loan index decline that was the steepest in nearly a decade.
By
Glen Fest
Banks promised $7 billion for a casino deal. Then the coronavirus hit
If JPMorgan, Credit Suisse and Macquarie Group aren’t able to find enough takers of bonds and loans funding El Dorado Resorts' acquisition of Caesar's Entertainment, they may have little choice but to offer the debt at a steep discount.
LendingClub-Radius deal faces high regulatory hurdles
Compliance, risk management and staffing will likely come under added scrutiny as regulators lay out a framework for future fintech-bank mergers.
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