6-Hour Program

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Overview

Why You Should Attend

With nearly $94 billion of CMBS issuance in 2014 and the possibility of issuance reaching $120 billion in 2015, securitized commercial mortgages now represent a considerable part of the real estate debt markets.  With an exponential increase in new conduit entrants into the market, capital markets lenders are competing aggressively with traditional main street portfolio lenders for large as well as conduit loans.  Community Banks are losing market share to CMBS conduits in smaller markets.  But how different is the securitized loan market from what it was before the financial crisis (CMBS 1.0) or in its initial recovery after the financial crisis (CMBS 2.0)?  Is CMBS 3.0 slowly deteriorating to CMBS 2.5?  The negotiation and structuring of CMBS loans continues to change but qualified borrowers have choices available for public or private, securitized or nonsecuritized debt.  Which is the better choice — better pricing and more proceeds or certainty of execution and knowing your lender?  What effect do periodic market disruptions have on the availability of securitized debt?  The turmoil in the capital markets during the financial crisis demonstrated that securitization is not without risk; and borrowers and their counsel must carefully consider the advantages and disadvantages of their financing choice.

What You Will Learn
• An overview of marketplace economics, presented by CMBS industry leaders
• How a CMBS bond is structured
• Basic types of securitization structures (including the creation of special purpose, bankruptcy remote entities), along with their legal and practical consequences
• The role of the credit rating agencies and their criteria after Dodd-Frank, explained by agencies themselves
• Securitized vs. portfolio loans: a comparison of the risks and rewards
• A user-friendly discussion of REMIC issues and tax concerns in various types of transactions, offered by a REMIC tax expert
• Essential deal points for lenders, borrowers and guarantors and strategic practice tips for negotiating CMBS loans
• Mezzanine and other subordinate debt
• Guarantors and the expansion of non-recourse carve-outs and their enforcement
• Intercreditor and other co-lender agreements
• Impact of increased International and Federal bank capital rules on availability of commercial mortgages and effect on borrowers
• Issues borrowers’ confront in CMBS servicing and workouts

Who Should Attend
Anyone representing lenders, borrowers, servicers, commercial property developers, owners, landlords, tenants, trustees, issuers and underwriters, as well as analysts, bankers, executives and other professionals who have to understand the world of commercial real estate finance in the capital markets.

Credit Details