Forum Spotlight: Alternative Lenders and High Yield Investors
December 18, 2023
Together, Samir, Samantha and Thanh form the “Leadership Working Group” for CREFC’s Alternative Lenders and High Yield Investors Forum. Importantly this group sets the agendas and priorities for the Forum, as well as represents their constituencies on CREFC’s Policy Committee.
Why it matters: Each of the Forums interacts and addresses issues critical to their business sector and works to achieve solutions that serve a common purpose. CREFC works closely with Forum leaders and members to:
- Ensure all voices are heard,
- Assist in finding consensus amidst disparate and converging views,
- Share those views when appropriate with regulators and legislators, utilizing CREFC’s experienced Government Relations Team,
- Develop new best practices and monitor old ones.
What they’re saying: There has been significant growth in high yield investors and alternative lending platforms, including lenders for bridge and mezzanine loans, preferred equity, and special/distressed situations, who represent private debt vehicles, public/private mortgage REITs, money managers, and other public or private entities.
As these providers of debt capital continue to navigate unpredictable capital markets, the Forum is focused on the following key areas:
- The role of alternative lenders in a capital constrained market,
- Interest rate volatility and its impact on high yield and alternative lenders,
- Capital raising and flow of funds in the context of the macro environment and negative real estate headlines.
Key Policy Issue:
- Basel Endgame Capital Proposal: The federal banking regulators have proposed raising capital requirements on banks with $100 billion in assets and above.
- The complex proposal could have impacts on competitors and warehouse lines.
- CREFC is working on a comment letter ahead of the January 2025 deadline.
What’s Next?
- Forum leaders will present an update on their Forum at the Annual January Conference in Miami.
- Planning is in full swing for CREFC’s High Yield, Distressed Assets & Servicing Conference on March 6-7 in New York.
- Soon after, the chairs will seek nominations for the next Chair-Elect to join their leadership slate.
To join the Alternative Lenders and High Yield Investors Forum, please register here. For any forum related questions, please contact Kathleen Olin.