Debtwire Radio

In the sixth episode of ABS in Mind, the Debtwire ABS team hosts Mike Li, portfolio manager with Dynamic Credit, to explore opportunities in less-established corners of marketplace lending. The team also discusses first Fannie Mae CRT deal backed by multifamily loans, as well as provides and update on CMBS investors and mall owners in the midst of an ongoing retail apocalypse.

Head of Municipal Research Greg Clark discusses his quarterly Eye on Munis, an overview of major municipal borrowers under credit risk or needing to restructure debt. San Juan-based Debtwire reporter Eva Llorens gives us the latest on the economic impact when the cockfighting industry ban goes into effect on 21 December and the appeal to try to keep it alive. Tobacco bonds tend to offer high yield and are very liquid. Maria Amante talks about a rare new issuance in the sector and the backstory of the Master Settlement Agreement back in 1998.

Debtwire Investigations published a story in October on the legal fees associated with Puerto Rico’s USD 70bn debt restructuring, which as of this week total over USD 530m. In this podcast, we discuss why the fees are are so high, what the court-appointed fee examiner thinks about these skyrocketing costs, and what to expect next for Puerto Rico. Click the link below to read Maria Chutchian's report "A Reasonable Proposal: How US Law Allows Puerto Rico's Legal Bills to Flourish." http://investigations.debtwire.com/a-reasonable-proposal-how-us-law-allows-puerto-ricos-legal-bills-to-flourish/

Not one but two frauds happened in muni financing transactions. Debtwire Municipals Simone Baribeau gives us the story. Chicago-based reporter Caitlin Devitt discusses the city’s budget and their plans to close a huge deficit. San Juan-based reporter Eva Llorens gives us the latest on what is going on in the commonwealth with a myriad of court cases. https://www.debtwire.com/intelligence/view/prime-2928709

Debtwire senior legal analyst Richard Goldman sits down with Ken Buckfire, president and managing director of Miller Buckfire, to discuss his ascent to become a premier financial restructuring advisor.

In this episode of ABS in Mind, the Debtwire ABS team hosts Gal Krubiner, CEO of Pagaya Asset Management, to explore the new funding structures in the unsecured consumer sector, as well as touch on the role of AI in active loan selection. The episode also features a discussion around the potential consequences of the Vantage-NCSLT litigation for the broader ABS industry, if Vantage walks out a winner. Lastly, we look at the aircraft ABS sector, including growth trends, downturn concerns and the 737 Max grounding issue.

If New Jersey and other pension-pressured states look for federal help during a possible upcoming recession, the Manhattan Institute’s Steven Malanga sees just one option: a special bankruptcy provision like the one created for Puerto Rico. Debtwire Municipals Kathie O'Donnell breaks it down. Members of the Chicago Teachers Union (CTU) are on the picket line while the district is preparing to raise short-term debt. Debtwire Municipals Patrick Ferguson gives us the latest as the district and union leaders have failed to come up with a new labor agreement. With interest rates at historic lows, the municipal bond market is seeing increased interest in pension obligation bonds (POBs) – and more could come as the current interest rate environment lessens the arbitrage risk associated with the debt instrument. Debtwire Municipals Maria Amante explains the trend.

Bondholders of a troubled student housing facility on the University of Oklahoma’s main campus have gone restricted to advance workout negotiations with management in a story penned by Debtwire's Maria Amante. Debtwire reporter Caitlin Devitt discusses how California’s charter schools may face a tougher time winning renewals and expanding under a pair of new regulations signed into law on 3 October by Governor Gavin Newsom (D). The National Law Enforcement Museum joins the ranks of municipal market projects - Bronx Parking and the National Sports Museum also come to mind – that failed soon after bonds to finance them were sold. Head of Municipal Research Greg Clark gives us his analyst snapshot.

Debtwire senior legal analyst Richard Goldman sits down with Andrew Redleaf, founder of Whitebox Advisors, to discuss his ascent to the top of the distressed investing community.

In this week’s episode, the Debtwire ABS team hosts ING’s Sandeep Srinath to discuss the growing popularity C-PACE. We also touch on the regulatory chaos that haunts the student loan sector following the Corinthian collapse, as well as the long and short debate in the CMBX space.

Debtwire Investigations set out to explore the legal mechanics that allow advisors to charge Puerto Rico hundreds of millions of dollars in fees to reduce its approximately USD 70bn debt load. We discuss an article penned by Debtwire's Associate Courts Editor, Maria Chutchian, on a review of the cost of the Puerto Rico bankruptcy case so far and a breakdown of fees reaped by the dozens of law firms and advisors involved in the numerous proceedings. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. investigations.debtwire.com/a-reasonable-proposal-how-us-law-allows-puerto-ricos-legal-bills-to-flourish/

Gianfranco Finizio, bankruptcy lawyer and partner at law firm Kilpatrick Townsend & Stockton discuss the modifications to the bankruptcy code taking hold next year. In the podcast, we highlight the changes that fall under Chapter 11 and how it might impact middle market companies.

Peter Antoszyk and David Hillman, co-heads of Proskauer Rose’s private credit restructuring group, and Vincent Indelicato, a member of Proskauer’s business solutions, governance, restructuring and bankruptcy group, recently joined Debtwire’s Richard Goldman to discuss documentation trends in the private credit market and the impact that those trends have on lenders' restructuring opportunities and alternatives.

The FOMB filed its proposed plan of adjustment to restructure USD 35bn of debt and other claims against Puerto Rico, the Public Buildings Authority, and the Employees Retirement System. The US Virgin Islands Water and Power Authority is facing a plethora of problems, including the need for additional funding, massive cost overruns, regular losses of power, providing water that may not be fit to drink, and falling victim to a USD 2m fraud, Across the US, more than 50 million students made their way back to school last month, but some of the largest districts in the country will continue to struggle with declining enrollment. The California Public Utility Commission approved Pacific Gas & Electric’s proposed sale of a hydroelectric plant and reservoir to the Nevada Irrigation District.

Joshua Thompson, head of Shearman & Sterling’s global leveraged finance group, and Patrick Clancy, a partner in the firm’s derivatives and structured products practice, recently joined Debtwire’s Richard Goldman for the first episode of Absolute Priority. During their discussion, the finance pros compare the pros and cons of LIBOR and SOFR, pinpoint the confluence of factors that led to the recent SOFR “surge event” and explain its significance. They also offer tips for what market participants can do in the coming years to prepare themselves for the inevitable LIBOR phase-out.

Law firms nationwide are increasing the reach of their public finance and restructuring practices in preparation for an eventual recession and its impact to the municipal market. Chicago mayor touts vision for city's resurgence at investors conference. An American Dream site visit for bondholders revealed amusement park and water park components that wowed, but a less-developed retail side.

This week’s special episode rounds up the hottest topics and asset classes discussed during Miami ABS East conference.

Debtwire talks with 20+ year Asian banking veteran Rahul Chawla, currently Deutsche Bank’s head of global markets and credit trading in India, about the opportunities and challenges in investing in distressed assets there, particularly ahead of Supreme Court's ruling on the sanctity of the seniority waterfall. India for past few years has been the leading Asia Pacific market for distresses asset investing, following the introduction in late 2016 of the rigorous time-bound Insolvency & Bankruptcy Code. Like all major new legal regimes, the code has had it teething pains—the most painful being the two-year old ongoing Essar Steel India process. That case is awaiting a final ruling from the Supreme Court on whether the financial creditor-approved plan need to be revised to share more of the recovery proceeds with junior, largely operational creditors.

Traditionally, when structuring a US lending transaction, parties would omit guarantees and collateral support from a US borrower’s foreign subsidiaries in order to avoid the adverse tax impact under Internal Revenue Code section 956. It’s that potential penalty that led to, among other things, the ubiquitous credit agreement provision that limits borrowers’ pledge of the voting stock in any first-tier controlled foreign corporation to 66%. But all that changed on 23 May, 2019, when US tax authorities issued final regulations under Section 956 that reduced or eliminated the tax imposed on a “deemed dividend” concerning controlled foreign corporations that are subsidiaries of US corporations. As a result, US borrowers and lenders can now secure their loans with foreign collateral without the risk of attendant tax consequences. While this might appear to be all rainbows and unicorns for the institutional lender community, seeking to enforce liens against and foreclose upon foreign collateral could come with

Debtwire's reporters and analysts discuss Alta Mesa's recent Chapter 11 filing.