Tough Times for Lenders : Financial Services Lawyer & Attorney : Winstead Law Firm : Finance, Banking, Bankruptcy

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(When we attend industry conferences and meetings, we bring you along by blogging - offering content that we find interesting, and offering our comments [with an occasional restaurant review]. This is the first in a series covering the 2010 CMSA January Conference. Our blogs on other conferences and meetings are found [i] under the "Market Trends" category in the archives on the right side of the page, or [ii] by a word or phrase search on the right side of the page [suggested search terms: looking glass; scorecard; pond]).

TIPS ON USING WI-FI ON AN AIRPLANE

This is a new experience for me: creating a blog entry while I'm flying to an industry conference.  (Yes, I will receive much, much "grief" for this at my favorite law firm.  But then, if I can bring a little humor and laughter into their lonely, miserable lawyer lives . . . then mission accomplished.)

I promised to cover technology uses for lenders & servicers, and given our hectic schedules and work loads . . . writing this blog on an airplane just seems right on.  (Find other technology entries by [a] doing a word search using the "search" field located on the right side of the page, or [b] click on the "Technology" term in the archives section, located on the right side of the page.)

I typically travel on American Airlines (DFW=AA), and I use their GoGo Inflight wi-fi service all the time [link], which means every time that I'm on a plane with wi-fi, I use it.  I really, really like it.

Here are my tips on using wi-fi (or wifi) on an airplane:

• bring an extra battery for your notebook; or bring the proper electrical "plug" for the electrical connection (warning: the plug that works in your car is NOT the proper plug for use on the plane) (I know, that's another rant of mine: can't people use the same hardware? how about agreeing upon common or standard hardware?)
• the fee is very reasonable based upon this reason alone: by  "cleaning" out my e-mail while I'm in the air, I can quickly get to work (or to play) when the plane gets on the ground
• my notebook has a 15" screen; it is too big; I'd much rather travel using a smaller 13" screen; but if you have a large screen . . .
• sit on the aisle (or up-grade to first class) (yes, I up-graded for this 2.5 hour flight from Dallas to DC)
• save and save often; while I have never lost a wi-fi connection on GoGo, I'm just cautious enough to  . . . save and save often

2010 CMSA JANUARY CONFERENCE 

Now, focusing on the 2010 CMSA January Conference [website] -

This conference traditionally focuses on CMBS bondholder issues.  After all, in the past it was called the "Investor's Conference."  However, this year the focus has expanded due to the current CRE finance train wreck, which makes this conference very, very interesting - and drove over 1,000 people to pre-register for this conference.

So, with the crash of the CMBS market, the CMSA has re-invented itself - just as the CMBS market is . . . well . . . trying to re-invent itself?  I'll know more after this conference on all of this, and I'll post "what" I learn.

Of course, the central message or question for the Conference is the same riddle everyone is discussing, all across America (in the board rooms, office, cubes and 19th holes):

• What is the capital market solution, or replacement for the CMBS market? Will CMBS be tweaked, change or gutted? What is next? When is next? (HURRY!!)

The event is organized around meetings called "Forums" and topics of interest.  I'll be going to as many forums and sessions as possible, and I'll be posting information and my commentary.

Importantly, the Conference is in DC in recognition of the need for, or coming reality of, financial and regulatory reform.  Consequently, several events include comments from influential members of the US House (Minority Whip Eric Cantor [R-VA] and Chairman Paul Kanjorksi [D-PA,] of the House Financial Services Subcommittee),  and even a keynote address by FDIC Chairman Shelia Bair.

The topics for the breakout sessions are not surprising, and they include: Lessons from CMBS 1.0; Real Estate Fundamentals; Trader Panel; Borrower Panel; Surveillance & Workouts; Large Loan Financing; and New Sources of Capital.

Here is the CMSA's summary of the Forums:

Investment Grade Bondholders Forum: the CMSA describes this as the "Introduction of a Forum for the Investment Grade Bondholders."  (Wow. Strange that this event went from being the "Investors Conference" to now a forum.  Are you telling me that the prior conference really didn't address issues? Were they more about golf handicaps than risk\returns?) Issues to be covered include:

• Terms, Practices and Structures for new issue CMBS

• Loan Resolutions: What policies and reporting practices do investors prefer?

• Selling REO with trust level financing: What terms might make sense.

 [As an aside, I sense that the Investment Grade Bondholders want much more that simply their "own" forum. We'll see if this is enough; or if they want real change and real influence . . . . ]

Servicers Forum:

• How do you manage the increasing demands of the CRE credit issues on your servicing operations

• Where is future servicing growth going to come from, and when?

• What is the optimal business model for the future of commercial servicing?

• What do servicers want from their trade association?

Portfolio Lenders Forum

• Do you want securitization to return any time soon?

• Do you look at risk, and price risk, differently now than in the past?

• What are the biggest lessons learned from the past few years?

• What is the impact of current and proposed regulatory items on your firm?

 Investors Forum (Wow.  The CMSA has now transformed itself as the home of A\B note holders, mezzanine lenders, participants, syndicated lenders, etc.  Impressive.  But is this focus simply too broad?) As the CMSA notes: "This Forum will focus on a broad spectrum of CRE debt investor issues."

 • When will deteriorating fundamentals become a factor in bond pricing?

 • How would you change loan and bond documents knowing what you now know?

• Government involvement: too much or too little?

• What opportunities and risks exist for whole loan, B note and mezz debt investors?

 Multifamily Lenders Forum

• How will affordable housing get built going forward? Will tax credits play a meaningful role?

• What is driving asset performance today?

• Is there capital for new multifamily developments? Who is getting financing?

• Will current lenders remain active? Will other sources of capital emerge?

This promises to be a very, very interesting couple of days.  Hopefully it will be an encouraging experience (in contrast to our experience during our trip to the EU in October, 2008 [link]).

If you have any questions, comments or your own questions, please post a comment.