May 17, 2016
excerpt, Asset Securitization Report (May 17, 2016):
"Marketplace [securitization] is in some cases like old middle market CLOs," said Joseph Beach, a partner at law firm Cadwalader, Wickersham & Taft, said, referring to deals backed by loans to smaller companies. He said there are two "big steps," or structural changes, that would make securitizations of marketplace loans more closely resemble CLOs. The first is to introduce revolving, rather than static, pools of loans. "There's no reason why, right now, a marketplace term ABS could not put revolving pool," Beach said. "You can call that a CLO structure."
A more important distinction between securitizations of marketplace loans and CLOs, according to Beach, is that CLOs are backed by loans from a diversified pool of originators. "To me that's more interesting," he said. "Will any aggregator go to multiple [marketplace] originators?"
our latest insights on the impact of COVID-19 to help you navigate this unprecedented environment.
Patrick Quinn and Ruth Merisier discuss the legal profession, working at Cadwalader, and more.
Selections to the Lawdragon 500 are limited to no more than 500 lawyers in the country.
Our latest podcast covers the legacy of the “Car Wash” investigation and how Brazil fits into the global landscape of white-collar crime enforcement.