Claira LLC, creator of the industry’s leading financial contract understanding technology, is excited to announce its latest development — loan contract covenant analysis for CMBS & Commercial Loans.
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With many retail businesses, hotels, and office buildings closed or operating at a reduced capacity, rental cash streams have been significantly disrupted — creating issues for owners of commercial properties and holders of commercial mortgage loans encumbering such properties. Under current conditions, borrowers, lenders, and investors need to intimately comprehend terms and conditions governing their particular loan(s) to identify issues and develop solutions.
Claira’s next-gen AI fully understands the details of CMBS cash management clauses and impacts on cash flows. Various CMBS product structures contain terms and conditions that stipulate how to handle cash generated from the underlying assets and who has control over the accounts, including covenants on changes if there is stress on the properties. Claira understands and interprets all the information described in the prospectus regarding these cash management covenants and makes them available for underwriters, investors, and traders.
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COMMERCIAL LENDING MARKETS UNDER SIGNIFICANT STRESS
The commercial lending market continues to prove challenging to navigate for all participants. Claira’s in-depth analysis of loan covenants enables issuers, borrowers, and investors to quickly and intelligently manage risk, reposition portfolios, and identify market opportunities.
“The global pandemic is creating significant stress across the commercial lending market” notes Steven Kirchner, Managing Director at Exos Financial. “With Claira, we have been able to quickly and more accurately gain in-depth analysis of loan covenants enabling us to more accurately manage risk, value, and reposition our portfolios,” says Steven. “Claira comes fully pre-trained to immediately assist our business.”
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