5. The Coming Wave of Distressed Assets, the Week in Retail and CMBX, More CLO Downgrades

The TreppWire Podcast: A Commercial Real Estate Show

English - April 23, 2020 00:00 - 40 minutes - 55.3 MB
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Previous Episode: Sharp Increase in Non-Payment on Hotel and Retail Loans, Bank Earnings, Downgrade Risk in CLOs

Next Episode: The Coming Wave of Distressed Assets, the Week in Retail and CMBX, More CLO Downgrades

Most CRE landlords who missed their April 1st payments have a 30 day grace period, but our preliminary data shows that 11%+ of CMBS loans will be 30 days delinquent when that grace period elapses, which would surpass the highest level hit during the Great Recession. We discuss the effect of oil prices on the broader market, the coming wave of distressed assets, forbearance requests, the week in retail and CMBX, CLO downgrades and more.

Episode Notes:

How will the drop in oil prices affect the broader market? (0:47)
Revisiting the bet for and against CMBX (5:15)
Assessing the scale of CMBS borrower relief requests (8:30)
This week in retail store closures (15:32)
What happens when tenants are allowed to break their lease? (19:20)
The revival of TALF in the current COVID-19 economy (24:53)
How are CLO managers dealing with leveraged loan downgrades? (31:59)
Where do we go from here? (36:33)