Cadwalader’s Jeffrey Rotblat Is a Panelist at IMN’s 8th Annual Investors’ Conference on CLOs and Leveraged Loans

May 28, 2019

Cadwalader partner Jeffrey Rotblat participated in a panel discussion titled “CRE CLOs: Expanding the Product” at IMN’s 8th Annual Investors’ Conference on CLOs and Leveraged Loans in New York on May 21.

The event annually gathers professionals in the CLO and leveraged loans industry, including CLO managers, structurers, bankers, investors, rating agencies, and legal and financial advisors, to discuss a range of topics and issues related to this form of structured credit.

Rotblat, who practices in Cadwalader’s Capital Markets Group, was joined by the following panelists: A.J. Sfarra, Managing Director, Wells Fargo Securities; Jim Dunbar, Senior Managing Director, Värde Partners, Inc.; Deryk Meherik, Senior Vice President, CRE CLOs Lead Analyst, Moody's Investors Service; Seth Messner, Partner, Katten Muchin Rosenman LLP; Michael Oliver, Vice President, Business Development, U.S. Bank; and Shannon Stotts, Managing Director, Resource Real Estate.  

The panel opened with a broad assessment of CRE CLOs, asking how they’ve evolved in recent years, reviewing their key differences from corporate CLOs, and considering how they benefit issuers, as compared to more conventional warehouse lending.

The ensuing discussion addressed more detailed and timely considerations for this asset class, such as:

  • Pros and cons to issuers of managed vs. static CRE CLOs
  • The state of loan originations, with a focus on competition and liquidity
  • Relative values of specific property types and markets
  • Credit trends and post-close performances
  • Bridge loans and the management of risk inherent to such future funding
  • Investor expectations for post-close reporting
  • Predictions for issuance volumes and spreads for the remainder of 2019 and next year

“For certain commercial real estate lenders and finance companies, CRE CLOs are a preferred financing vehicle because of their ability to provide match term funding,” Rotblat said. “As this asset class continues to evolve and mature, its many stakeholders will benefit from industry-wide dialogue that promotes transparency and an open exchange of ideas.”

Rotblat practices primarily in commercial real estate securities representing major Wall Street investment banks and financial institutions in their roles as issuers, loan sellers, underwriters and placement agents in both public and private offerings of mortgage-backed securities and other structured finance products. He also represents investment banks, specialty finance companies and investment funds structuring and negotiating mortgage loan trades, mortgage loan participations, subordinate loans and asset-backed securities. He also represents special servicers and specialty finance funds in work-outs and restructurings of non-performing commercial mortgage loans in CMBS and CRE CLO transactions.