The chapter delves into the complexities of refinancing loans for property rehabilitation, focusing on eligibility criteria, debt service coverage ratios, and property valuations. It also explores strategies syndicators are utilizing to navigate these challenges, with a keen analysis of the implications of refinancing decisions on loan portfolios and the risks involved.
For the last six months, Arbor Realty Trust has been the target of a prominent short seller, Viceroy Research, which claims that a huge chunk of its collateralized loan obligation, or CLO, portfolio is in trouble. Arbor, though it denies the short seller's numbers, said it is experiencing challenges and delinquencies are set to rise. And the company is not afraid to go after non-performing borrowers.
Deconstruct sat down with Gabriel Bernarde, one of the individuals behind Viceroy, to chat about the reports, and then dug into Arbor's fourth-quarter earnings.