Paolo R. Olavario

Associate

New York


Read full biography at www.orrick.com

Paolo R. Olavario is an associate in Orrick's New York Office and practices in the Structured Finance group. 

Paolo represents issuers, underwriters, loan sellers and loan purchasers in public and private securitizations, with a particular focus on commercial mortgage-backed securities. He has worked on conduit programs and single asset / single borrower transactions. He also has experience representing underwriters in connection with residential mortgage-backed securities offerings and asset-backed securities offerings, including auto loans.  

Posts by: Paolo Olavario

Rating Agency Developments (September 3 – September 16)

 

On September 16, DBRS Morningstar released an updated methodology titled Rating U.S. Wholesale Securitizations. Methodology.

On September 16, KBRA released a research report titled Global ABS Conference Recap: Day One. Report.

On September 15, KBRA released a research report titled Structured Finance: Virtual Conference: Credit & COVID-19 – Is the Worst Behind Us? Report.

On September 11, DBRS Morningstar released an updated methodology titled Third-Party Due-Diligence Criteria for U.S. RMBS Transactions. Methodology.

On September 11, KBRA released a research report titled RMBS Credit Indices: August 2020. Report.

On September 3, DBRS Morningstar released a report titled Rating European Consumer and Commercial Asset-Backed Securitizations. Methodology.

CFTC Further Extends Certain No-Action Relief to Market Participants in Response to COVID-19

 

On September 11, the Commodity Futures Trading Commission (CFTC) announced the Division of Swap Dealer Intermediary Oversight (DSIO) and the Division of Market Oversight (DMO) are further extending certain elements of the temporary no-action relief issued in response to the COVID-19 pandemic that are set to expire on September 30. The extended relief expires January 15. Such relief includes relief for affected firms from CFTC regulations related to voice trading and other telephonic communications, as well as time-stamping requirements when located in remote, socially-distanced locations. No-action relief will also be extended for SEFs and DCMs from certain CFTC regulations regarding audit trails, recording of oral communications, and related requirements as a result of the displacement of trading personnel from their normal business sites. Release.

SEC Updates and Expands Disclosures for Banking Registrants

 

On September 11, the U.S. Securities and Exchange Commission (SEC) announced that it has adopted rules to update and expand the statistical disclosures that bank and savings and loan registrants provide to investors. The rules also eliminate certain disclosure items that are duplicative of other Commission rules and requirements of U.S. GAPP or IFRS. Release.

CFTC Approves Final Swap Dealer Capital Rule

 

On July 22, the Commodity Futures Trading Commission (CFTC) approved a final rule regarding new capital and financial reporting requirements for swap dealers and major swap participants that are not subject to supervision by a banking regulator and imposing financial reporting requirements for swap dealers and major swap participants generally. The final rule provides swap dealers and major swap participants three alternative methods to establish and meet minimum capital requirements depending on the characteristics of their business. The final rule also includes: a comprehensive model approval process; accompanying financial reporting, recordkeeping, and notification requirements; and a substituted compliance determination process for those swap dealers that may already be required to maintain capital in accordance with a foreign regulator. Release.

Rating Agency Developments (July 17 – July 29)

 

On July 29, Moody’s published an updated ratings methodology titled US Local Government General Obligation Debt. Methodology.

On July 28, KBRA published a surveillance report titled Financial Institutions: Business Development Corporation of America Surveillance. Report.

On July 27, Fitch published an updated ratings methodology titled EMEA Equity Release Mortgage Bespoke Rating Criteria. Methodology.

On July 27, DBRS Morningstar published an updated ratings methodology titled Global Methodology for Rating Sovereign Governments. Methodology.

On July 24, KBRA published a surveillance press release titled KBRA Affirms Classes for Seven RMBS Transactions. Release.

On July 24, Moody’s published an updated ratings methodology titled Moody’s Methodology for Rating Debt Issuance Under Certified Capital Company, New Markets Tax Credit and Similar ProgramsMethodology.

On July 24, Moody’s published an updated ratings methodology titled Moody’s Approach to Rating Trade Receivables-Backed TransactionsMethodology.

On July 24, Moody’s published an updated ratings methodology titled Moody’s Approach to Rating Future Receivables Transactions. Methodology.

On July 23, KBRA published a research report titled Public Finance: Coronavirus (COVID-19): Retail Sales Stabilize but Rising Cases Temper Outlook. Report.

On July 21, DBRS Morningstar published an updated ratings methodology titled North American Commercial Mortgage Servicer Evaluations. Methodology.

On July 21, DBRS Morningstar published an updated ratings methodology titled Rating European Structured Finance Transactions. Methodology.

On July 21, DBRS Morningstar published an updated ratings methodology titled Rating CLOs and CDOs of Large Corporate Credit. Methodology.

On July 21, DBRS Morningstar published an updated ratings methodology titled Cash Flow Assumptions for Corporate Credit Securitizations. Methodology.

On July 17, Moody’s published an updated ratings methodology titled Moody’s Approach to Rating ABS Backed by Equipment Leases and Loans. Methodology.

On July 17, Moody’s published an updated ratings methodology titled Moody’s Global Approach to Rating Auto Loan- and Lease-Backed ABS. Methodology.

On July 17, Moody’s published an updated ratings methodology titled Moody’s Approach to Rating Consumer Loan-Backed ABS. Methodology.

Rating Agency Developments (May 22 – June 3)

 

On June 3, KBRA published a Structured Finance research report titled CMBS: Coronavirus (COVID-19): CMBS Loan Performance Trend Update. Report

On June 3, KBRA published a report titled Public Finance: Coronavirus (COVID-19): States Brace for Unprecedented Medicaid Expansion. Report.

On June 2, KBRA published a report titled ABS: Coronavirus (COVID-19): Modifying Auto and Consumer Loan Delinquency Expectations. Report

On May 29, KRBA published a Structured Finance – CMBS surveillance report titled CMBS: BANK 2019-BNK18. Report.

On May 27, Fitch published an updated rating methodology titled APAC Residential Mortgage Rating Criteria. Methodology.

On May 27, DBRS Morningstar published its updated methodology titled U.S. ABS Surveillance. Methodology.

On May 22, Moody’s published an updated rating methodology titled Moody’s Approach to Rating Large Loan and Single Asset/Single Borrower CMBS. Methodology.

On May 22, Moody’s published an updated rating methodology titled Moody’s Approach to Rating Derivative Product Companies. Methodology.

Rating Agency Developments

 

On April 27, KBRA published a report titled Public Finance: Coronavirus (COVID-19): Municipal Issuers’ Virus-Related Voluntary Disclosures Trend Up. Report.

On April 21, Moody’s published its revised approach to rating U.S. RMBS using the MILAN Framework. Methodology.

On April 20, KBRA published a report titled Public Finance: Coronavirus (COVID-19): Sales Tax Bonds Under Surveillance. Report.

On April 17, S&P published its revised methodology and assumptions for rating U.S. RMBS issued in 2009 or later. Methodology.

On April 16, KBRA published a report titled CMBS: Coronavirus (COVID-19): CRE Recovery Clues From the Great Recession and China. Report.

On April 15, KBRA published a report titled Public Finance: Coronavirus (COVID-19): Fed Provides Vital Assistance to State and Local Governments. Report.

On April 15, Fitch published an article titled Exposure Draft: U.S. RMBS Coronavirus-Related Analytical Assumptions. Criteria.

On April 15, DBRS Morningstar published its methodology for Currency Stresses for Global Structured Finance Transactions. Methodology.

On April 14, Moody’s published its methodology for Fleet Lease Securitizations. Methodology.

On April 13, DBRS Morningstar published its methodology for Rating Structured Aircraft Transactions. Methodology.

On April 10, Moody’s published its methodology for Reverse Mortgage Securitizations. Methodology.

On April 10, Moody’s published its methodology for Resecuritizations. Methodology.

On April 10, Fitch published its criteria for CMBS Large Loan Rating. Criteria.

Interim Final Rule and Interagency Statement for Real Estate-Related Financial Transactions Affected by the Coronavirus

 

On April 14, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC) today announced an interim final rule that allows financial institutions to defer completion of appraisals and evaluations after the closing of certain residential and commercial real estate transactions. The deferrals provide flexibility for completing appraisals and evaluations to help financial institutions meet the immediate liquidity needs of borrowers during the coronavirus emergency. The interim final rule authorizes deferrals of appraisals and evaluations for all residential and commercial real estate transactions, except for transactions involving the acquisition, development, and construction of real estate, allows a bank up to 120 days from the closing of a transaction to obtain the appraisal or evaluation required under the appraisal regulations, and authorizes deferrals until December 31, 2020, when the interim final rule terminates. Bulletin.

Federal Bank Regulators Issue Interim Final Rule for Paycheck Protection Program Facility

 

On April 9, the federal bank regulatory agencies today announced an interim final rule to encourage lending to small businesses through the Small Business Administration’s Paycheck Protection Program (PPP). The interim final rule modifies the agencies’ capital rules to neutralize the regulatory capital effects of participating in the Federal Reserve’s PPP facility because there is no credit or market risk in association with PPP loans pledged to the facility. Consistent with the agencies’ current capital rules and the CARES Act requirements, the interim final rule also clarifies that a zero percent risk weight applies to loans covered by the PPP for capital purposes. The rule is effective immediately. Release.

Treasury and Federal Reserve Board Announce Main Street Business Lending Program and a Municipal Liquidity Facility

 

On April 9, the Treasury and Federal Reserve Board announced the establishment of the Main Street Business Lending Program and a Municipal Liquidity Facility. The Main Street Business Lending Program will enable up to $600 billion in new financing for businesses with up to 10,000 employees or $2.5 billion in 2019 annual revenues. The Municipal Liquidity Facility will provide up to $500 billion in direct financing to states, counties and cities. States, counties and cities will be able to sell new municipal notes directly to the Municipal Liquidity Facility to obtain the funds they need. Release.