Office performance has been shaky throughout 2023 with commercial mortgage-backed securities (CMBS) delinquency rates nearly quadrupling since the end of last year, up to 5.58% from 1.58%. This trend has also been observed within two of the largest subtypes within the sector, suburban and urban offices. Ranging from traditional private offices to collaborative coworking spaces in the most densely populated areas, the prime positioning of urban offices offers convenience at a premium cost. Suburban offices typically offer a more spacious and diverse...

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Following their recent announcement regarding new partnership and global high wealth enforcement initiatives,1 the Internal Revenue Service (IRS) on Oct. 20 announced another enforcement initiative focusing on foreign corporations and the largest corporate taxpayers. Last week, IRS Commissioner Danny Werfel announced the IRS would be sending out approximately 150 compliance alerts to U.S. subsidiaries of foreign corporations. Commissioner Werfel noted the alerts are intended “to remind them of their U.S. tax obligations and to incentivize taxpayer self-correction.” It appears that much...

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Corporate governance is a critical aspect of running a successful business, particularly in New York, where regulations and legal requirements are stringent. Effective corporate governance practices ensure transparency, accountability, and the protection of stakeholders' interests. Directors and officers play a pivotal role in upholding these best practices, with their fiduciary duties and responsibilities. From maintaining proper record-keeping to managing conflicts of interest, there are several key areas that New York businesses must focus on to maintain strong corporate governance....

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Following on the heels of the launch of the EU-U.S. Data Privacy Framework (DPF)1 this summer, the U.S. Department of Commerce has extended the DPF to cover transfers of personal data from the United Kingdom (UK) (and Gibraltar) to the United States, in addition to transfers from the European Union to the United States.  As of October 12, 2023, employers currently certified to the DPF can expand their certification to cover the transfer to the United States of the personal...

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The European Investment Bank (EIB) has signed its largest ever loan agreement in the Czech Republic, with a CZK 24 billion (€992 million) contract with the Ministry of Finance to support the upgrade of the country’s rail network. Through Správa železnic, the national railway infrastructure administrator, which falls under the authority of the Transport Ministry, the loan will support the modernisation and retrofit of trans-European networks (TEN-T) railway lines in the country and enable the deployment of the European...

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Entering 2023, there generally was strong confidence in consumer spending in the travel and hospitality industry. Simultaneously, however, property insurance costs have been soaring due to losses from natural disasters, a pull-back in insurer offerings, and higher rebuilding costs. In Trepp’s recent Multifamily Expense Report series, we covered the trends in multifamily property line-item financials, including property insurance costs. Throughout this analysis, Trepp takes a closer look at insurance costs but for lodging properties operating in coastal markets that are prone to...

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As the economic environment shifts with increased interest rates and credit weakening projected while liquidity sources are highly scrutinized, it is important for financial institutions to revisit the significance of loan portfolio management fundamentals. Effective loan portfolio management involves a comprehensive approach to managing the various types of risk in the loan portfolio. The risk landscape of your loan portfolio has changed as borrowers, individually or commercially, have been impacted in one way or another by economic changes. So, when...

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Last week, the Federal Trade Commission (FTC) announced a proposed rule that would regulate a broad range of “junk fees” in consumer goods and services, from resort fees associated with travel and lodging, to delivery fees associated with meal and grocery delivery, to convenience fees associated with financial services (the proposed rule). The proposed rule would generally prohibit the omission of mandatory fees from advertised prices. If finalized, violations of the proposed rule could result in civil penalties of up to...

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This is the final post regarding the Corporate Transparency Act (CTA), which takes effect on January 1, 2024. This piece is preceded by two other articles summarized and linked here. The first post described why the Act was passed, which entities will be affected, who must file and who is exempt, and when filings will be required. The second post outlined what information will need to be filed in order to comply with the Act, who must file on...

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The European collateralized loan obligation (CLO) market has held firm throughout this difficult economic climate. Panelists at Opal Group's European CLO Summit 2023 remained optimistic that there could be 12 more deals before the year's end. One point of discussion was the default risk in the market and there was a clear consensus around the 4 to 5% mark. But what's more ambiguous is the looming downgrade risk, especially its potential impact on the CCC-rated securities. With technical defaults making their presence felt through...

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