News

Traxi's Paul Fried Addresses Practicing Law Institute, Discusses Future of Lending Industry and Deal Structure Trends


By Susan Piperato

NEW YORK, NY-The prospects for increased lending, investing in distressed assets and trends in the way real estate deals are currently being structured, were just a few of the topics Traxi Managing Director Paul Fried discussed as a guest panelist at the Practising Law Institute's (PLI) conference held on March 4, 2010.

Fried joined industry luminaries, Daniel B. Rubock, Senior Vice President-Commercial Real Estate Finance Group of Moody's Investor Services, and Fredric L. Altschuler, Partner, Cadwalader, Wickersham & Taft LLP, in a discussion about the direction of the market and prospects for increased lending in the current environment. He offered a comparison to previous cycles as well as his perspective on market trends and areas of activity and opportunities for distressed investing in the coming year.

The PLI seminar was widely successful, attracting many of top names in real estate and finance. During the panel discussion, comparing and contrasting the current economic cycle, available cash flow and valuations to the 1990 cycle, he touched on the role of securitization and traditional lenders then, and the likely return of securitization in the near term. Also, Fried talked about the frustration felt by investors with the current stagnation in the market, potential outcomes in 2010 and the impact of bank regulation.

"In 2010 we'll see the development of two major trends," noted Fried. "First, is what we will call the 'shedding phase,' in which lenders start to dispose of distressed loans, as their balance sheets allow them to absorb losses. Next we will see the morphing of term extensions into loan modifications. These restructured loans will be the loans that can be held without undo cost to the lender."

Practising Law Institute is a non-profit continuing legal education organization chartered by the Regents of the University of the State of New York, founded in 1933. PLI is dedicated to providing the legal community and allied professionals with the most up-to-date, relevant information and techniques which are critical to the development of a professional, competitive edge. The organization achieves these goals through the highest quality Seminars held annually in locations across the United States, annually supplemented Treatises, Audio CDs and DVDs, MP3s, Live Webcasts, Course Handbooks, CLE Now web programs, Private Label Solutions and PLI XChange, all with the guidance of practice specific Advisory Committees.

Paul Fried is a managing director at Traxi LLC, a national full-service investment banking and advisory firm providing comprehensive solutions to complex business challenges and capital needs. Friedís experience spans investment banking, distressed-asset acquisitions, workouts and recovery, securitization, high-yield structured finance, equity joint ventures, and fundraising. In his 25-year career, he has handled more than $10 billion in distressed assets, loans and securities. Reach him at (212) 812-9447 or pfried@traxi.com. Visit www.traxi.com.