lending

Securitised real estate debt has been battered by the covid-19 pandemic. Now institutional managers must decide what to do about it.

Ratings agency S&P expects the delinquency rate to climb higher for June, although European CMBS are so far weathering the storm.

The New York-based alternative asset manager, formerly known as Och-Ziff Capital Management, beat the target for its latest property vehicle by nearly $1bn.

The economic fallout from covid-19 has stoked fears of a liquidity crisis in US commercial property lending.

The duo will target both the acquisition and origination of loans secured by real estate in the western US, Ireland and the UK.

Capital providers and their managers are seeking fresh pockets of value as fundraising in the sector dips.

Last month’s real estate debt fire sales at the outset of the covid-19 outbreak in the US were just the tip of the iceberg for private real estate.

A measure to allow some borrowers to request forbearance from special servicers could hinder new loan originations, said a Real Capital Analytics executive.

With tenants now defaulting on rent payments, new regulations will play a critical role in lowering the number of casualties in the industry.

Real estate debt looks well positioned compared with corporate debt, maintains Justin Guichard of Oaktree Capital in this interview shot at sister publication PDI's New York Forum.