Corporate finance

Tariff uncertainty could boost lender leverage to incorporate protection against LME proliferation

Early signs are emerging that Trump-induced dollar volatility, inflated Treasury yields and fears about the country's debt burden are fueling a gradual reweighting toward the Old Continent.

The company took a break from securitization during the first quarter but was able to get a deal done shortly after the fiscal period ended.

The lender's parent also said it is actively in preparation to move forward on plans to unlock equity value in 2025, with a Newrez spinoff among its options.

The parent company of Regions Bank released modest growth first-quarter earnings, anticipating a slowdown in the economy due to market volatility.

The regional bank is offloading a $1.9 billion student loan portfolio in order to focus on its relationships with existing customers, said CEO Bruce Van Saun.

The Buffalo, New York-based bank also said Monday that the commercial real estate lending market has started showing signs of life, but that the renewed competition is crimping its loan growth.

First aggressive LMEs in Europe rankle lenders, who have pursued court rulings on their permissibility.

In a paper, former central bank researchers make the case that the Federal Reserve could better support the Treasury market from disruptions in the cash-futures basis trade by hedging its asset purchases.

Easing regulations on the GSEs will likely drive elevated activity in non-QM if or when it occurs, leaders at the real estate investment trust also said.