The Somei Platform will fill the gap by providing long-term debt to companies in need while offering its lenders limited downside via
over-collateralized positions and modest upside through profit sharing.
HLSS' assets are predominately mortgage servicing advances that, along with the related servicing rights, are
over-collateralized 30 times by residential real estate.
Be careful not to allow one lender to become unduly
over-collateralized by taking a lien against multiple stores where the financed amount is not warranted, as this will limit your ability to obtain capital to finance growth initiatives by offering an additional store as collateral.
Banks and corporations that invested in these complex,
over-collateralized "AA rated mortgages later found out that they were worth nothing," she continued.
By contrast, products that advance funds for benefit payments from the provider's general account leave the portfolio
over-collateralized.
Fitch attributes these recovery outcomes to a mix of three key factors: 1) the
over-collateralized status of pre-petition ABLs; 2) a security interest in liquid collateral that was much sought-after by debtor-in-possession (DIP) lenders as well; and 3) lender dominion over cash which helped reduce the ABL balances (or claim size).
The 13% secured notes are the strongest piece of debt in the capital structure and well
over-collateralized (also share lien in the Mirage, Bellagio and MGM Grand on pro rate basis with other secured notes).
The loans granted to Coahuila remain performing due to the fact that they are correctly
over-collateralized, and Fitch expects this situation would not change throughout the restructuring process, allowing the bank to maintain a low impairment ratio (0.
In the event the subordinate classes are completely written off, further mortgage losses from
over-collateralized mortgage groups will be allocated to under-collateralized mortgage groups until the senior classes of each group equal the balance of their respective mortgage pools.
The pool of collateral securities will always be
over-collateralized and the market value will be marked on a daily basis by Bank of New York Mellon, the tri-party agent.
The TALF loans will be
over-collateralized with investments in asset-backed securities (ABS), with the intention of producing a relatively close asset/liability match that generates a positive spread.
The ATI management team has over twenty years experience generating loans; the new fund will focus on a diverse range of investment vehicles, including
over-collateralized commercial finance, asset purchase,
over-collateralized international finance, and international "Triple A" U.
