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Provided by: FitchTraining CMBS Credit Risk Workshop USAccounting and Finance |
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Training
Provided by FitchTraining
Develop a structured approach to assessing the risks and returns of CMBS asset classes.
Related Awards, Degrees or Certifications: Earn CPD credits
We are an accredited training provider with a number of institutions including:
ACCA
NASBA
Securi
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CMBS Credit Risk Workshop US
Course Objectives
Participants will be equipped to:
Use a structured approach to understand the risk profile of securitized commercial mortgage debt by evaluating the asset quality and transaction structure, including originator and servicer
Understand the impact of key real estate variables on risk assessment models
Evaluate cash-flow waterfall priorities and other structural protections
Assess the relative risks and rewards of US CMBS asset classes, such as single asset, multiborrower, and fusion structures.
Target Audience
A workshop for investors, issuers, servicers and those involved or interested in US CMBS credit risk management.
The majority of Fitch Training programmes are offered at an intermediate and advanced level. There are no specific prerequisite courses to attend our programmes, however some topic knowledge maybe required. Please refer to the target audience to see what level of prior knowledge is required for a specific course.
Content
INTRODUCTION
Issuer/ Originator motivations and development of the market
Parties to the transaction and their roles
PURPOSE: PAYBACK
Analytic approach to credit
Introducing a structured approach to analysis: purpose, payback, risks and structure
Application of the structured approach to various types of CMBS transactions
RISKS TO REPAYMENT
Collateral analysis
Identifying key real estate variables which will impact the likelihood of default. and severity of loss
Importance of property quality on cash-flow
Market analysis and site inspections
Examining rent rolls to analyze property income
Understanding expenses and getting to net cash-flow
LTV and DSCR
Defining the base case: the use of historical performance data in sizing credit enhancement
Calculating expected losses by considering default probability and loss severity
Incorporating correlations
Large loan shadow ratings
Servicer and originator evaluation
Role of the servicer: the ability to preserve value
Servicing issues
Qualities of strong originators
STRUCTURE
Credit enhancement
Sizing: assessing the level of credit enhancement required for target ratings
Understanding and evaluating the differing types of credit enhancement: internal versus external
Note profile
Understanding how waterfall structures determine the priority of payments
Expected and rated maturity
A/ B notes
Structural safeguards
Establishing, maintaining and adjustments to reserve funds, excess spread
Access to liquidity: evaluating liquidity providers
Additional debt
Defeasance
Pari passu loans
Loan covenants
Legal safeguards
Isolation of assets
Representations and warranties
Events of default
MONITORING PERFORMANCE
The need for disclosure: timely and adequate reporting
Surveillance: expectations versus performance through the cycle
Interpreting performance to identify early warning signals
Upgrades and downgrades
RELATIVE VALUE
Relative value: Comparing corporate bonds performance to CMBS
Spreads across the credit spectrum and asset classes.
Participants will be equipped to:
Use a structured approach to understand the risk profile of securitized commercial mortgage debt by evaluating the asset quality and transaction structure, including originator and servicer
Understand the impact of key real estate variables on risk assessment models
Evaluate cash-flow waterfall priorities and other structural protections
Assess the relative risks and rewards of US CMBS asset classes, such as single asset, multiborrower, and fusion structures.
Target Audience
A workshop for investors, issuers, servicers and those involved or interested in US CMBS credit risk management.
The majority of Fitch Training programmes are offered at an intermediate and advanced level. There are no specific prerequisite courses to attend our programmes, however some topic knowledge maybe required. Please refer to the target audience to see what level of prior knowledge is required for a specific course.
Content
INTRODUCTION
Issuer/ Originator motivations and development of the market
Parties to the transaction and their roles
PURPOSE: PAYBACK
Analytic approach to credit
Introducing a structured approach to analysis: purpose, payback, risks and structure
Application of the structured approach to various types of CMBS transactions
RISKS TO REPAYMENT
Collateral analysis
Identifying key real estate variables which will impact the likelihood of default. and severity of loss
Importance of property quality on cash-flow
Market analysis and site inspections
Examining rent rolls to analyze property income
Understanding expenses and getting to net cash-flow
LTV and DSCR
Defining the base case: the use of historical performance data in sizing credit enhancement
Calculating expected losses by considering default probability and loss severity
Incorporating correlations
Large loan shadow ratings
Servicer and originator evaluation
Role of the servicer: the ability to preserve value
Servicing issues
Qualities of strong originators
STRUCTURE
Credit enhancement
Sizing: assessing the level of credit enhancement required for target ratings
Understanding and evaluating the differing types of credit enhancement: internal versus external
Note profile
Understanding how waterfall structures determine the priority of payments
Expected and rated maturity
A/ B notes
Structural safeguards
Establishing, maintaining and adjustments to reserve funds, excess spread
Access to liquidity: evaluating liquidity providers
Additional debt
Defeasance
Pari passu loans
Loan covenants
Legal safeguards
Isolation of assets
Representations and warranties
Events of default
MONITORING PERFORMANCE
The need for disclosure: timely and adequate reporting
Surveillance: expectations versus performance through the cycle
Interpreting performance to identify early warning signals
Upgrades and downgrades
RELATIVE VALUE
Relative value: Comparing corporate bonds performance to CMBS
Spreads across the credit spectrum and asset classes.
About The Training Provider: FitchTraining
FitchTraining - Fitch Training is a specialist training firm focused on the provision of credit and corporate finance training. Courses are offered in three areas: financial institutions, corporate credit and securitization. Fitch Training is part of Fitch Solutions, a division of the Fitch Group. We also work in partnership with Fitch Solutions to provide quantitative training.
Fitch Training operates...
