Coronavirus

Borrowers with financially engineered performances face covenant breaches amid a market correction, warns AXA IM – Real Assets’ head of research and strategy.

A measure to allow some borrowers to request forbearance from special servicers could hinder new loan originations, said a Real Capital Analytics executive.

Rating agency S&P Global is monitoring sponsors’ performance, but believes transactions are equipped to deal with liquidity stress.

Commercial tenants have been granted rent holidays as they deal with the impact of covid-19. Now, pressure is mounting for debt providers to grant similar treatment to their borrowers.

Legal issues finance parties could face during the coronavirus pandemic will most likely be linked to traditional financial covenants, argues one real estate finance lawyer.

Our conversations with debt providers suggest many will favour a collaborative approach to dealing with difficulties faced by borrowers.

Following its signing of a €45m sustainability-linked loan, the fund manager’s ESG expert argues that such deals should remain high on the industry’s agenda, despite the covid-19 crisis.

With tenants now defaulting on rent payments, new regulations will play a critical role in lowering the number of casualties in the industry.

Market observers expect deals like ICG-Longbow’s recent data centre loan to become more frequent as new working patterns drive internet usage.

German lenders are lost for words, opportunistic credit specialists are gearing up, and sponsors are dealing with a loss of income.