Bill O’Connor Quoted in Reuters on CMBS Risk Rules

“New CMBS risk rules threaten smaller lenders’ access”

The US commercial mortgage-backed securitisation market is facing a shake-up after new rules clamping down on riskier loan origination spur executives at investment banks to curtail upstart lenders’ access to their bond issuance platforms.
“It’s a know-your-counterparty issue,” said William O’Connor, co-chair of real estate capital markets at law firm Thompson & Knight, explaining that it would take just one bad loan out of a typical CMBS pool of 70 made by different lenders to spell trouble.
“For some of the smaller players, that means they are going to have to go elsewhere.”