Sector developments and company hires

ECOWAS prepping ABS
The Commission of the of the Economic Community of West African States (ECOWAS) and the World Bank are developing a securitisation of payments related to the cross-border power trade in West Africa. In order to address the low access of the West African population to electricity, ECOWAS member states are pooling efforts through the development of an integrated regional electricity market. The ECOWAS Directive C/DIR/2/12/18 sets out the requisite measures, which were approved in December 2018 and became effective from 1 January 2020. To support this process, the World Bank is examining two options: the development of a liquidity enhancing revolving fund, focused on electricity trade in the region; and a World Bank regional budget support programme, focused on advancing the reforms needed to implement the new ECOWAS Directive.

GSE transition underway
Fannie Mae and Freddie Mac have disclosed the additional steps they’re taking as they transition from Libor. These steps include: new language for single-family Uniform ARM instruments closed on or after 1 June 2020; all Libor-based single-family and multifamily ARMs must have loan application dates on or before 30 September 2020 to be eligible for acquisition; and acquisitions of single-family and multifamily Libor ARMs will cease on or before 31 December 2020.

Millennium Health case eyed
A federal district court in New York is currently hearing a case to determine if syndicated term loans are securities under US federal and state Blue Sky securities laws. The case (Marc Kirschner vs JPMorgan Chase Bank) came about when borrower Millennium Health in a widely syndicated loan went into bankruptcy. The bankruptcy trustee to certain trusts formed as part of the bankruptcy restructuring brought suit against the lending syndicate - including JPMorgan, as one of the lead arrangers - alleging the lenders misrepresented the information provided to the trust’s beneficiaries to determine if they wanted to participate in the Millennium syndicate. The trustee asserts that JPMorgan sold its participation of a loan to Millennium, which they were aware was having substantial economic and legal difficulty. A Reed Smith memo notes that should the court rule in the trustee’s favour and declare that loans are securities, Volcker Rule restrictions would prevent banks from purchasing notes from the CLOs that hold such participations.

North America
Basis Investment Group founder and ceo Tammy Jones has been appointment chair of the Real Estate Executive Council (REEC), a trade association formed to promote the interests of minority executives doing business in the commercial real estate industry. She is the first female chair of the association and succeeds Accordia Partners managing partner Kirk Sykes. Since its inception in 2003, REEC has grown to include over 110 members with careers allied to investment, management, leasing, financing and property development. James Simmons, ceo and managing partner of Asland Capital Partners, will serve as vice-chair.