CREFC High Yield & Distressed Realty Assets (HYDRA) Forum
February 28, 2022
Meet our leadership team:
High Yield Investments Sub-Forum
Distressed Realty Assets Sub-Forum
Together, Thanh, Samir, Abbe, Niral, Andrea and Rick form the “Leadership Working Group” for CREFC’s High Yield & Distressed Realty Assets Forum. Importantly this group sets the agendas and priorities for the Forum, as well as represents their constituencies on CREFC’s Policy Committee.
Key HYDRA Focus Areas
Increased competition
- Barbelling of portfolios with multifamily and industrial given challenges in other asset classes;
- Interesting and at times challenging lending structures such as ground leases and their impact on various financings;
- The scarcity of distressed opportunities during the pandemic, which can be attributed in part to stimulus funds and recovering asset and thus loan performance;
- Additionally, talent attraction and retention is a top concern. While pipelines remain strong, gaining traction on all the opportunities requires staff to meet the increased goals.
Looking ahead, leaders acknowledge that debt funds have hit their stride. To the good, growth opportunities remain plentiful for alternative lenders given the significant uptick in demand for bridge loans as the pandemic recedes. Challenges for high yield include the aforementioned talent retention, plus the challenges faced in developing ESG metrics and how to hold funds accountable. On the distressed side, managers are focusing on surveillance in order to protect credit, but see opportunities from the debt/equity side to provide capital when needed.
Forum leaders, including Thanh, Andrea, Niral and Samir who are part of the planning committee, are looking forward to exploring some of these topics further at CREFC’s March 31 HYDRA and Servicing Conference in New York City. Please click here to learn more.
To join the HYDRA Forum, please register here. For any forum related questions, please contact Kathleen Olin.
