Regulation

The Credit Connection: What’s Changing in Private Real Estate Finance

The downside to low interest rates

Historic low rates are a boon for capital seekers, but institutional investors face newfound uncertainty as lower for longer threatens to become lower forever.

Questions remain over the transition from LIBOR

The real estate loans market is starting to embrace to move towards SONIA, but questions remain around its implementation.

FCA demands markets transition to SONIA

The UK’s regulator has thrown its support behind the SONIA benchmark as a replacement for LIBOR, which could have knock-on consequences for private debt documentation.

Prepare for a LIBOR-less future

LIBOR has underpinned financial markets for decades. But the benchmark could be phased out in less than three years, with huge implications for real estate lenders.

Another upbeat MIPIM, though concerns about headwinds are building

Industry figures at the annual Cannes gathering predicted another strong year for real estate, but acknowledged threats including Brexit and slower eurozone growth.

UK CRE lending has been loss-making for three cycles, industry watchers claim

Property lenders must create late-cycle strategies to avoid the “profitability black hole” of previous cycles, a debt working group has urged.