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August 23, 2016
Mike Gambro comments on the new credit risk retention rule implemented under a multiagency umbrella that requires sponsors of CMBS deals to hold five percent of the risk associated with the deal.
An excerpt from "Some Lawyers Fear New Regulation Will Disrupt Deal Pipeline," New York Law Journal (Augusr 23, 2016):
Cadwalader's Michael Gambro, a signatory to the white paper, said he expects the main participants in the CMBS market are already getting used to living with risk retention. Clients will need to adjust to the new requirements, he said, but that could create counseling opportunities rather than a slowdown in work.
"It is my view that it should not materially affect deal flow, and the reason for that is the way clients are acting," Gambro said.