PRESS RELEASE
23 July 2019

Cadwalader Attorneys Compare European CMBS Against U.S. CMBS And CRE CLOs

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
Cadwalader attorneys highlighted considerations and trends within European commercial mortgage-backed securities and U.S. CMBS and commercial real estate collateralized loan obligations.
United States

Cadwalader attorneys highlighted considerations and trends within European commercial mortgage-backed securities ("CMBS") and U.S. CMBS and commercial real estate collateralized loan obligations ("CRE CLOs").

As described more fully in a Cadwalader memorandum and accompanying comparison chart, the activity levels in 2019 for these products continue at a strong pace, reflecting the global demand for commercial mortgage-backed securities. In 2018 alone:

  • U.S. CMBS issuance equaled approximately $171 billion;
  • European CMBS issuance equaled approximately €4 billion, representing a significant increase for the European market as compared to any other period since the financial crisis; and
  • U.S. CRE CLO issuance equaled approximately $14.5 billion.

Cadwalader attorneys noted that:

  • European CMBS is secured by properties in various jurisdictions and, therefore, the legal frameworks and requirements, in addition to the associated risks, may vary from transaction to transaction;
  • the size and consistency of the U.S. market, and the presence of significant loan sponsors (which often have growing European operations), mean that developments in U.S. CMBS will have a strong influence on the structural features that are incorporated into European CMBS; and
  • the growth of commercial mortgage direct lending and loan-on-loan finance in Europe (which will require additional sources of take-out financings) are strong indicators of the development of a CRE CLO market in Europe.
PRESS RELEASE
23 July 2019

Cadwalader Attorneys Compare European CMBS Against U.S. CMBS And CRE CLOs

United States

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.

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