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Category Archives: Covered Bonds

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Covered Bonds “Back” On Stage: Will the Market (Finally) Get Behind this Structure?

Posted in Covered Bonds, Good Times for Lenders

Earlier this week, Housing Wire commented on a Moody’s report that covered bonds (finally) are receiving serious consideration as a very viable structure for the US real estate finance market. Housing Wire summarized the report as follows:  "More banks based in the United States will establish covered bond programs to fund future mortgages on the… Continue Reading

Fallout From the Ibanez case for CMBS? One State Already Fixed; But Federal Fix Needed For CMBS 2.0

Posted in Covered Bonds, Good Times for Lenders, Market Trends, Tough Times for Lenders

One outcome from the Ibanez case: comments made by Yves Smith at Naked Capitalism and by Adam Levitin at Credit Slips are now receiving renewed attention: So What Else Has the American Securitization Forum Said That is Wrong?  (Smith) ASF Lies Yet Again, Brazenly Asserts That Ibanez Ruling Validates Reliance on PSA for Transfers, Blank… Continue Reading

Covered Bond Bill Hearing Today: Industry Sends a Letter in Support & My List of More Details on the House Bill

Posted in Covered Bonds, Good Times for Lenders

(This is the third posting in a series on this topic) (first posting; second posting) The United States Covered Bond Act of 2010 (H.R. 5823) is out of committee in the House, and today the Senate Banking, Housing & Urban Affairs committee will hold a hearing on covered bonds. Yesterday, the following industry organizations (as they… Continue Reading

Covered Bonds As A Possible CRE Finance Product: What Is A Covered Bond?

Posted in Covered Bonds, Good Times for Lenders

(This is the second posting in a series on this topic) (first posting) Now that the United States Covered Bond Act of 2010 (H.R. 5823) is out of committee, covered bonds are attracting interest of the broader financial services community.  I view covered bonds as a "must have" product for the US commercial real estate finance… Continue Reading

Covered Bonds As A Possible CRE Finance Product: How Are You Following This Bill and Related Changes in Bank Regulations?

Posted in Covered Bonds, Good Times for Lenders, Technology (including Green Buildings)

Recall that on July 28, the US House of Representatives Financial Services Committee approved H.R. 5823, the “United States Covered Bond Act of 2010,” which now is on the floor of the House for a vote (but not yet scheduled for a vote). This means that legislation on covered bonds (H.R. 5823) is currently eligible for… Continue Reading

Covered Bonds Are Back For Consideration: Why H.R. 5823 Makes Sense

Posted in Covered Bonds, Good Times for Lenders, Market Trends

As an asset class, commercial real estate typically requires some level of financing.  With all of the problems and challenges facing CMBS, there is a need for what I call a "new class" of commercial lender for commercial real estate.  And this new class of lenders should have the ability to issue covered bonds. Unfortunately,… Continue Reading

Financial Reform Up-date: Risk Retention, FAS Standards & Covered Bonds

Posted in Covered Bonds, Good Times for Lenders, Market Trends

Here is an up-date from the CREF-C on the joint committee charged with reconciling the House and the Senate financial reform bills. The summary focuses on three topics: risk retention in CMBS deals FAS rules 166 and 167 covered bonds The CREF-C up-date: To begin, House Chairman Barney Frank (D-Mass.) presented a "House offer" that would… Continue Reading

Financial Reform Bill Update: Helpful Comparison of House & Senate Bills; Conference Committee Taking Shape; Final Hope For Covered Bonds

Posted in Covered Bonds, Good Times for Lenders, Market Trends

The tentative time line for the House-Senate reconciliation conference committee covering the financial regulatory reform legislation is the following: begin to meet during the week of June 7, 2010, with the goal of having a final Bill ready for the President’s signature by the July 4 recess. With that quick time line in mind, here… Continue Reading

CRE Financial Reform And Market Trends: Opportunity For New Lending But More Extend & Pretend As Defaults Grow

Posted in Covered Bonds, Good Times for Lenders, Market Trends

James Ruiz recently wrote a piece, published in the Texas Lawyer, summarizing the February 10, 2010 report (“Commercial Real Estate Loses and the Risk to Financial Stability”) issued by the Congressional Oversight Panel. (continue reading link below). It is a good summary of the Panel’s perspective of the credit problems in commercial real estate, and addresses the… Continue Reading

Financial Reform: Major Industry Groups Ask Senate Banking Committee to Carefully Consider Securitization Reform

Posted in Covered Bonds, Good Times for Lenders, Market Trends

Once again [link to earlier letter], in a letter dated March 25, 2010, the 21 key industry groups band together in an attempt to focus the Senate on the importance of the securitization market, and to caution the Senate on the proposed reforms relating to the securitization market. The players in this group represent an extremely… Continue Reading