Sentences with phrase «horizontal risk retention»

The deal's LCF AAA class ultimately printed at S +77, with KKR listed as the B - piece buyer of the horizontal risk retention mandate.

It is now required that conduit deals structured with either a horizontal or hybrid risk retention arrangement disclose deals» proceeds in order to accurately determine how large horizontal risk retention slices should be.

Not exact matches

Whether issuers opt to use the vertical, horizontal or B - piece buyer exemption for risk retention, each will come with an adjustment related to the cost of funds that will impact pricing.

However, sponsors have introduced new structures, including new deals introduced in January, that have tested all different models of horizontal, vertical and even L - shaped risk - retention models.

But this year, large CMBS shops appear to know what direction they are taking on risk retention securitization structures, be it horizontal, vertical or L - shaped.

According to Dodd - Frank risk retention rules that went into effect last December, sponsors and third - party investors of an asset - backed securitization are required to retain a 5 % interest in the transaction under the form of a vertical (5 % of each class), horizontal (5 % of the lowest bonds in the deal waterfall), or hybrid structural holding (combination of the vertical and horizontal structures equal to 5 %).

Risk retention rules require that issuers retain a vertical slice equal to 5 % of a deal's par value, or a horizontal slice equal to 5 % of a deal's market value.

When deals are structured with a horizontal or hybrid risk - retention structure, where both vertical and horizontal pieces are retained, the B - piece buyer swallows the cost.

The investment manager acquired bonds with a face value of $ 265.81 million, comprising the horizontal risk - retention classes of three conduit deals totaling $ 2.9 billion.