Adverse market conditions and lower valuations are creating litigation risks for commercial real estate (CRE) deal parties, particularly in the office sector. At the same time, opportunities exist for refinancing and a rebound in value where regulations can be eased or adapted to help CRE survive and thrive through the post-pandemic storm.
Though cannabis’ status as a Schedule 1 controlled substance has hampered the industry’s ability to fully integrate into the digitally dominated payment world, with credit card issuers refusing to process cannabis transactions, cannabis businesses have historically been able to enjoy similar benefits of efficiency, convenience, and security with debit cards. However, MasterCard’s recent ban on...
In the subprime auto ABS market, losses have begun to appear in certain deals and there are signs of a downturn for the first time since the 1990s. Joseph Cioffi was quoted multiple times in the Structured Credit Investor article, “Skid Marks: Subprime Auto ABS Shows Sign of Pain,” commenting on how the decline has impacted investors and the future for the subprime auto sector.
“The market is resilient” was the mantra throughout the pandemic. Now that the Federal Reserve is at an inflection point on interest rate hikes and the pause on student loan payments is set to end after three years of relief, “the market is vulnerable” may be a more appropriate refrain. In fact, the cracks have started to show, particularly in subprime auto ABS.
Rising interest rates and post-pandemic trends have put pressure on valuations in the commercial real estate market in the United States, potentially triggering defaults and a rise in litigation over control rights in CMBS. Joseph Cioffi was quoted throughout the Structured Credit Investor article, “Litigation Looms: Invest or Disputes To Rise as CMBS Valuations Decline,” weighing in on how...
An inescapable result of high interest rates and post-pandemic trends is downward pressure on commercial real estate valuations, especially in the office sector. Given commercial mortgage-backed securities and other deal structures in which control of the loan rests with the lowest priority interest that is in the money, reduced valuations will likely become the flashpoint for CRE litigation.
Joseph Cioffi was interviewed for an Auto Remarketing podcast episode, "Talking Compliance and Risk with Davis+Gilbert Partner Joseph Cioffi."
