Kristi Leo, president of the Structured Finance Association (SFA), returns to speak with host Patrick Dolan about the SEC’s proposed conflict of interest rule. The rule would prohibit securitization participants from engaging in transactions that could incentivize a participant to structure an asset-backed security to put their interests ahead of other investors.

We discuss SFA’s proposed revisions to the rule, including changes to several definitions such as “conflicted transaction” and “synthetic asset-backed security,” carve outs to the definition of “sponsor”, additional guidance to help clarify the more ambiguous provisions and more.

Caitlin Colvin, Senior Managing Director and Head of Investor Relations within the business development group at Kroll Bond Rating Agency (KBRA), joins host Patrick Dolan to discuss the recent proposal by the Securities Valuation Office (SVO) within the National Association of Insurance Commissioners (NAIC), which allows the SVO to review and potentially challenge a filing exempt NAIC Designation. The proposal is open for comment until July 14.

We delve into various concerns raised by insurance companies and other market participants regarding the proposal, and discuss what issuers and investors within the fixed income market can do to learn more.

Elen Callahan, Managing Director and Head of Research of the Structured Finance Association, joins host Patrick Dolan to discuss recent trends in the leveraged loans and collateralized loan obligations (CLOs) markets.

The April 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices reported tighter bank lending standards for commercial and industrial loans in the first quarter of 2023. We discuss what impact this has on loan issuances and demand to purchase and refinance these loans. We also explore the effect of credit deterioration on CLO structures and loan portfolio ratings.


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Securitization Insight Ep 42: Impact of Recent Regulatory Enforcement Actions on Bank-FinTech Partnerships

Eamonn Moran, senior counsel in our Washington, DC office, joins host Patrick Dolan to discuss the Federal Deposit Insurance Corporation’s (FDIC) recent Consent Order relating to Cross River Bank (CRB) and its partnership with FinTech firms. The Consent Order is intended to resolve charges that CRB engaged in unsafe or unsound practices related to its fair lending compliance.

We examine key provisions of the Consent Order and actions the FDIC requires CRB to take to comply, including how the FDIC defines “new credit products.” We discuss whether we anticipate this to be part of a wider investigation and whether the FDIC will issue similar consent orders to other banks involved in the FinTech partnership space.

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Scott Millar, partner in our Melbourne banking and finance practice, joins host Patrick Dolan to discuss the Australian securitization market. We examine the most popular asset classes and typical parties involved in an Australian securitization transaction. We review both private and public transactions, including residential mortgage-backed securities (RMBS) as a common asset class for both bank and non-bank issuers, and discuss recent regulatory developments affecting the Australian securitization market.

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Elliot Ganz, head of advocacy and co-head of public policy of the Loan Syndications and Trading Association (LSTA), joins host Patrick Dolan to discuss the SEC’s re-proposed Securities Act Rule 192, which would prevent securitization participants from entering into a “conflicted transaction.” We examine the primary issues associated with the rule’s definition of “securitization participant” and “conflicted transaction” and explore what this means for investors and securitization participants, including the potential for information barriers as a mitigant to the proposed rule.

Ann Battle, senior counsel, market transitions and head of benchmark reform at the International Swaps and Derivatives Association (ISDA), joins host Patrick Dolan to discuss the transition from USD LIBOR to SOFR and how it will impact the derivatives market. We consider whatrole the ISDA 2020 IBOR Fallbacks Protocol will play, how the various tough legacy solutions for USD LIBOR fit together and how they affect derivatives. We also explore what role Term SOFR will play in the derivatives markets.

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Xilun Chen, managing director at Kroll Bond Rating Agency (KBRA), joins host Patrick Dolanto discuss predictions for 2023 for the whole business securitization (WBS) market. We talk about the restaurant industry, which makes up a large portion of WBS issuers, and how it has adapted to the post-COVID environment. We also explore the impact of the current inflationary environment on franchisees and the key considerations and trends KBRA is focusing on.

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Securitization Insight Ep 37: The Impact of Higher Interest Rates on the Commercial Mortgage-Backed Securities (CMBS) Market

Lonnie Hendry, senior vice president and head of commercial real estate and advisory servicesat Trepp, Inc., joins host Patrick Dolan to discuss the effect high interest rates have on the commercial mortgage-backed securities (CMBS) market. We examine the steady decline of rental rates and sublease levels and the significant increase of insurance, labor and maintenance costs among underutilized assets, and how these factors have led to market uncertainty.

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Securitization Insight Ep 36: Litigation Finance, Law Firm Equity and Securitization

David Perla, co-chief operating officer of Burford Capital, joins host Patrick Dolan to examineopportunities and limitations in the litigation finance market. We discuss the increased demand for capital and the expansion of both size and type of investments available.

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