We offer free lender training to banks that want to improve their marketing, customer service and loan profitability. One of the things we teach is how to go after the huge refinancing wave that is taking place in securitized commercial properties. If you remembered back in 2006, the securitization market hit its high in volume, and many of these deals were 10-year fixed rate transactions that all come due in 2016.
Last week we saw the release of the details of the Basel Committee on Banking Supervision (BCBS) rule on Fundamental Review of the Trading Book (FRTB). Started in 2012, put forth in concept in 2014 and now proposed in detail last week, the rule, should it stand, makes it largely uneconomical to securitize all sorts of lending assets. As such, should this rule stand as written, it would most likely go into effect in January of 2019 and make it onerous for large banks to securitize a variety of transactions.