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Managed CRE CLO Eligibility Criteria: An Inside Look

1/25/2019  ·  by KBRA  ·  CRE CLOs  ·  Research and Background Documents

KBRA reviews the eligibility criteria (EC) in managed commercial real estate collateralized loan obligations and discusses how they have varied among the deals rated by KBRA since 2017. The article delves into the potential for negative credit and concentration migration and how they are mitigated by EC, such as, minimum pool HERF, limits on loan size, property type and geographic concentration, restrictions on future funding, and parameters for issuer underwriting.

Tags: CRE CLO  ·   CLOs  ·   Eligibility criteria  ·