Weekly News – April 19

Register Now for 2024 Restructuring Symposium!  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­  

Creditor Corner

for the week ended March April 19, 2024

Your weekly curated content from the Creditor Rights Coalition

Over 2,500 member subscribers and growing!

Sign Up Here

ANNOUNCING

Registration Now Open for our 2024 Restructuring Symposium

Reserve Your Spot Below!


BREAKING NEWS

Read your docs please! Big law on Big law violence, Apollo on the hunt in Ardagh, City Brewing tees up LME, LME primer for the files,  IMF on private credit, and much, much more…


FEATURED CONTENT

Bruce Richards on the Markets:

Food +25%; Fuel +50%; Cost of a New Home +123% !

Scroll through to read all of our content

2024 Restructuring Symposium

Registration is Now Open

Free for Subscribers to the Creditor Corner

Register Here

Tweet of the Week

Read your docs please!

Our take:

It seems to fight is no longer a right to have but a privilege to take even if you have sh*tty docs. Read your docs and save your ammo for winners not losers…. please.

Featured Content

Worth the read from our friends @Petition

Our take:

This is a fight worth having. Ethical obligations of loyalty to one’s client should apply equally whether a client is in bankruptcy or not. While the outcome seems pre-ordained, we look forward to listening to the hearing on April 29, 2024 in front of Honorable Chief Judge Michael B. Kaplan. The integrity of nothing less than the process itself is at stake.


The Advocacy efforts of the Coalition do not necessarily reflect the views on any individual Contributor or Advisory Board Member.

Exclusive Content

Apollo on the hunt…

Click Above to Access Content

Our take:

The downtier is the classic restructuring technique that is impervious to creditor cooperation… The only defense is to supra note 1 above [read your docs]!

In the News

emotions running high here…

In the News

The classic co-op at work…

Exclusive Content

the next generation of LMEs…

Click Above to Access Content

One Time Registration Required

Exclusive Content

a great compendium of LME transactions… save this one for the file

Click Above to Access Content

Exclusive Content

Lobster on Lobster violence…. too much?

Click Above to Access Content

One time registration required

Food +25%; Fuel +50%; Cost of a New Home +123% !

– A bag of food at your local grocery has increased ~25% from January 2021 to April 2024.

– The cost to fill up your with car has increased ~50 % ($2.40 vs. $ 3.60 per gallon, national average) from January 2021 to April 2024.

– The cost of homeownership has increased 123% since 2020.


+123%? Yes, 123%!


This calcuation is shown below and includes home purchase price and cost of financing/ mortgage payments. (note: mortgage payments was once a key component of CPI, before the government changed the equation to eliminate mortgage costs).


Total monthly housing cost for the median homebuyer – 20% down payment = 80% LTV 30-year mortgage – has risen 123% since the start of 2020. Total monthly housing costs rose from $1,977 to $3,724.


In that time, median home price is up 46% from $255k to $365k.


Much of the rise in total housing costs is due to the rise in interest rates. The current 30-Year fixed rate according to Mortgage News Daily is now 7.50%. The rise in mortgage rates just in the last two weeks accounts for a 5% increase in total housing costs.


Taxes and insurance are up approximately 43%, while utilities (water, gas, and electric) are up nearly 30% since the start of 2020.


The chart below shows annual rental properties were once equivalent to the cost of homeownership annual payments. Today, homeownership has soared by such an extent, it is out of reach for most to move into a new home. Yes, Inflation is too high. The Fed knows this. Chairman Powell would like to ease, but unfortunately the data does not support this action at the current juncture.


Inflation/CP| is stuck in a range of 3-4%. The markets are pricing no June cut, and less than a 50% probability of a July cut. In this election year, President Biden is troubled by inflation that now makes home ownership prohibitively expensive. Investors will benefit by deploying capital to earn high cash flows, position for Higher for Longer.

To follow Bruce’s thoughts on the markets, investing and more follow

@bruce_markets

Regulators Weigh In

IMF weighs in on private credit

Exclusive Content

and… even more private credit!!

Click Above to Access Content

Data Download

Inflation continues to rear its ugly head…

Data Download

Small business optimism at lowest level in 11 years…. no bueno…

NIFB Small Business Optimism Index

Source: BofA Global Investment Strategy, Bloomberg c/o JF Lehman. Thanks!

In the News

Leading to this…

NYU Stern Bankruptcy Workshop

Register Now!

Space is Limited

Discounted Before May 1

An unprecedented opportunity for young legal & finance professionals to learn in-depth fundamental credit and legal analysis through seminar and case-study format over intensive 3-day format.


Taught at NYU Stern from August 5 to 7, 2024.


Participants will receive Certificate of Completion from NYU Stern and in-depth reference materials for their future careers. Participants already include leading asset managers and law firms.


Workshop program here.


Expert Faculty:

Edward Altman, Dan Kamensky, Donald Bernstein, Saul Burian, Judge Robert Drain (ret.), Christian Fischer, Michael Friedman, Max Frumes, Michael Gatto, Larry Halperin, Mo Meghji, Andy Rosenberg, David Smith, Robert Stark, Nick Weber, Jay Weinberger with featured speakers: Lisa Donahue, Holly Etlin, Lauren Krueger & Jared Parker


Registration fees apply

Register Here

Upcoming Events

ABI: Distressed Real Estate Symposium

April 30, 2024

Learn More

ABI: New York City Bankruptcy Conference

May 9, 2024

Learn More

Trepp: CRE Symposium

May 9, 2024

Learn More

LSTA: Direct Lending & Middle Market Conference (FL)

May 9, 2024

Learn More

The 2024 Creditor Rights Coalition & LSTA Restructuring Symposium

June 27, 2024

Register Here
Learn More About Sponsorship Opportunities
Read all of our Features Here

The views of our Contributors should not be attributed to their respective firms or the Creditor Rights Coalition. In addition, the Coalition may take positions as part of its Advocacy efforts that do not necessarily reflect the view of Contributors and should not be attributed to any Contributor.

Meet Our Sponsors

The CRC is funded through sponsorships from these organizations

Platinum Sponsors

Gold Sponsors

Silver Sponsors

Have Something to Share?

Email us at info@creditorcoalition.org