Finance

The availability of financing hasn’t been an issue to date, but it still could be.

The likely extension of support of Libor until June 30, 2023 is a major plus for the securitization market, fending off potential market disruption the buying and trading of $1.8 trillion in outstanding asset-backed securities because of the planned cessation of the benchmark rate by the end of 2021.

The nonbank lender is co-sponsoring a $258.4 million residential mortgage pool comprised entirely of wealthy borrowers with 15-year term contracts.

Deals, trends and research in structured finance and asset-backed securities for the week of Dec. 11-17

The deadline for inclusion in Ginnie mortgage-backed securities has been extended and an exception will be made for some participations.

Downgrades applied to deals sponsored by Carlyle Aviation and Avolon Aerospace reflect the continued deterioration of airline credit quality and aircraft values afflicting nearly all issuers, the ratings agency reported.

The $425 million loan securitization is among two single-asset, commercial-mortgage deals launching this week. Brookfield Asset Management's global real estate arm is also tapping investors to finance an $825 million loan backed by a downtown Manhattan office building.

Last year, smaller lenders were put at a slight disadvantage in terms of what they were charged in guarantee fees when they sold loans for cash.

Hedge funds are eyeing malls, hotels, and office buildings hobbled by the Covid-19 pandemic in what some say may be the most lucrative commercial real estate move of 2021.

The pool of 359 loans also on average carry higher balances (over $900,000) compared to the REIT's earlier pass-through deal this year.

But late payments for all other investor types rose compared with the second quarter.

Deals, trends and research in structured finance and asset-backed securities for the week of Dec. 4-10

Delinquencies and defaults are at or near historic lows as tracked by Fitch, while rising monthly payment rates show consumers are increasingly paying down balances.

Industrial warehouses, including cold storage facilities, are among the best-performing categories of commercial real estate as hotels, malls and offices face uncertain futures in the wake of the coronavirus pandemic.

But existing deals are likely to experience issues resulting from higher defaults, faster prepayment speeds.

The average per-loan profit margin remains incredibly strong, but the share of senior executives expecting it to fall has risen markedly.

A program that lets firms bundle Small Business Administration loans is on hold while Congress spars over a new budget. The impasse is causing headaches for banks that rely on loan sales for fee income.

Whether Ginnie issuance increases in the future may depend in part on the extent to which the Biden administration wishes to tap the FHA to promote affordable housing and homeownership.

HomeEquity will sell an as-yet undetermined volume of notes to finance forthcoming originations by the bank sponsored by Birch Hill Equity Partners Management.

The more-than-$550 billion market for bonds backed by U.S. commercial mortgages may face losses even after promising Covid-19 vaccines become widespread, as key parts of the real estate market may not return to full strength anytime soon.