COVID-19 And Marijuana: Can Cannabis Municipal Bonds Help Government Budgets?
Thursday, 30 July 2020, 21:29:44
Cannabis Based Municipal Bonds (CMBs) could offer governments and financial institutions a viable and creative way to aid in the recovery of lost revenues due to the COVID-19 pandemic, says a newly released report from cannabis and hemp advisory firm MPG Consulting. As the cannabis industry continues to grow at a rapid pace and regulations mature, it is time for state and local governments, as well as traditional financial institutions, to start taking a serious look at the validity of CMBs as a source of financing for local initiatives and infrastructure, MPG analysts argue. In fact, they point to similar initiatives in place in the form of special tax bonds, typically backed by taxes, on certain activities or assets classes like tobacco, alcohol and gaming — the so called “sin taxes.” How This Could Work To demonstrate how this could work, MPG conducted a theoretical analysis, using Denver as an example. Figure – MPG Consulting Above, a breakdown of Denver’s cannabis revenue sources by type for 2018.
Reonomy Launches Commercial Mortgage-Backed Securities Data Enhancement
Thursday, 30 July 2020, 15:00:00
NEW YORK , July 30, 2020 /PRNewswire/ — Reonomy , a leading provider of property intelligence, today announced the launch of the Commercial Mortgage-Backed Securities (CMBS) Data Enhancement to its platform. The addition of the CMBS data set allows Reonomy users to easily find refinance opportunities, view CMBS ongoing financial and loan reporting, access increased coverage of property data points, and more. The ability to take advantage of this feature through the robust Reonomy platform, which houses key data on the vast majority of commercial real estate (CRE) properties in the U.S., enables debt brokers and lenders to easily identify leads. The product enhancement provides data on over 150,000 properties and over 300,000 mortgages in the U.S. … Full story available on Benzinga.com
One Bank Warns Buying Gold Is The Only Hedge Left For The “Great Debasement”
Saturday, 25 July 2020, 03:05:00
One Bank Warns Buying Gold Is The Only Hedge Left For The “Great Debasement” Tyler Durden Fri, 07/24/2020 – 21:05 As far as Bank of America is concerned, there are just two themes one needs to know to explain the current “market” (which as the same Bank of America explained last week, is now manipulated to a never before seen extent ): the Great Repression and Great Debasement. First the Great Repression – also known as “Don’t fight the Fed” – which according to BofA CIO Michael Hartnett is the outcome of $8 trillion in central bank asset purchases in just three months in 2020, has crushed interest rates, corporate bond spreads, volatility & bears. The most perfect example of this repression: the US fiscal deficit soared from 7% to 40% of GDP in Q2’20… … and less than one month later the volatility of US Treasury market fell close to all-time low. Besides volatility, central bank repression works its magic on yields: case in point Italian & Greek 10-year government bonds which are down to 1%, while US Commercial Mortgage Backed Securities (CMBS) & IG corporate bonds down to 2%, meanwhile the 30-year US mortgage rate just dropped to a record all time low of 3%.
— Zero Hedge
Wednesday, 3 June 2020, 23:45:00
NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases a report on the wave of commercial real estate (CRE) coronavirus (COVID-19) pandemic-related borrower relief requests, special servicing transfers, and increased delinquencies that materialized in the May 2020 reporting period. In this report, KBRA provides observations across its $285 billion rated universe of U.S. private label commercial mortgage-backed securities (CMBS) including conduits, single-asset single borrower (SASB
— Business Wire
CMBS could be hit harder than the ’08 sub-prime market, says Deer Park Road CIO
Tuesday, 26 May 2020, 15:50:37
CMBS could be hit harder than the ’08 sub-prime market, says Deer Park Road CIO Submitted By James Williams | 26/05/2020 – 2:50pm Deer Park Road is maintaining an aggressive short position in commercial mortgage backed securities as the market continues to fall because of lockdown. Although the Colorado-based structured credit manager, which was established by Michael Craig-Scheckman in 2003, expects to shift to a long position in CMBS when the right entry point emerges towards the end of the year, or in early 2021. “Coming into 2020, we were fairly concerned with CMBS, in particular on the retail side,” comments Scott Burg, CIO and Portfolio Manager. “We went into the beginning of this year with a significant short position on the CMBX index (Series 6 through Series 9). We are short BB, BBB and single A securities. “With the pandemic, and the structural shifts within commercial real estate, we’ve added to our short position over that time. In some cases, the price of BB securities has been cut in half. “At the same time, we’ve built long positions in some of the best residential MBS assets, such as seasoned sub-prime mortgages created in 2007 and earlier, which survived the global financial crash.” Burg has worked in the structured credit space since 2001, focusing on MBS, in particular sub-prime securities.