Within one week, securitization industry professionals will assemble in Miami to hear expert viewpoints on whether there is a need for a liquid secondary market, how the industry is adapting to regulatory changes to be implemented in December, and whether the cell phone deal from Verizon is really the birth of a new asset class.
They will be part of the 22nd Annual ABS East Conference, from the Information Management Network, based in New York. Just over 4,000 delegates from every line of work in the securitization industry will attend, putting the event on pace for record attendance, said Matt Gessel, head of marketing for the IMN. At the same time last year, 3,900 delegates had registered for the event.
Everything seems to be going green these days, why not bonds? In June, Renovate America, closed what it claimed to be the largest securitization of PACE bonds to date, the $305 million HERO 2016-2. The agenda also includes a discussion of the uptick in Property Assessed Clean Energy, or PACE deals. Alexandra Cooley, the co-founder and chief investment officer of Greenworks Lending, LLC, based in Darien, Conn., will be on hand to explain the workings of PACE bonds.
The IMN has also lined up an investor-only panel, where buy side industry professionals can weigh in on a range of topics. They will discuss progression in residential mortgage-backed securities deals, GSE reform and blockchain technology. On the latter, they will examine ways to improve the transparency and efficiency of the market.
Much of the talk at the conference will surround December 24, when firmer CMBS risk retention rules will go into effect. Banks that securitize commercial mortgage loans will need to retain at least a five percent interest in all CMBS issued in a particular transaction. Perhaps delegates will pore over available details of the $870.6 million WFCM 2016-BNK1, the first deal to include a feature that complies with the coming rules. It has a vertical risk retention interest, representing 5.0% of the pool balance, according to materials on the deal. Bank of America, Morgan Stanley Mortgage Capital Holdings, National Association and Wells Fargo contributed loans to the deal.
Not all discussions will be focused solely on U.S. concerns, however. The conference will also feature a “Euro Snapshot” during a panel called “CLO Regulatory and Legislative Cliff Notes,” according to the IMN’s agenda. Ever since the Brexit vote for Great Britain to leave the European Union unfolded, global bond markets have been warily watching to see exactly how interest rate and currency movements will shape future transactions.
Delegates will also be trying to assess consumer confidence for the remainder of 2016 and going into 2017. How Americans’ feel about the economy is sure to have an impact on mortgage, auto, credit card and other consumer-backed ABS. That now seems to include revenues from cell phone contracts.
The ABS East conference started in Bermuda, then moved to the Bahamas before coming stateside, staying in the Florida communities of Boca Raton, Orlando and Miami.
This article was written exclusively for GoRion.