Cleary Gottlieb has pioneered many of the key products used widely in today’s structured finance markets. We specialize in analyzing the complexities of new transactions envisioned by our clients so that we can draw a blueprint to help our clients reach their goals. Our insight and experience often let us craft simple solutions to complex problems, and our resolve allows us to deliver thoughtful and effective solutions even when the answer is far from simple.
Cleary Gottlieb legal landmarks in structured finance include participation in:
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More than $900 billion of asset-backed securities offerings since 1988 and more than $1 trillion in mortgage-backed securities deals since 2001.
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The development of the first collateralized mortgage obligation (CMO), the first collateralized loan obligation (CLO), the first collateralized bond obligation (CBO) and the first real estate mortgage investment conduit (REMIC).
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The first asset-backed commercial paper programs.
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Asset-backed securities based on secured and unsecured consumer finance assets.
Cleary Gottlieb represents issuers, underwriters and other market participants in transactions involving mortgages, high-yield bonds, unsecured bank loans, automobile loans, credit cards, home equity loans and other types of assets. Our varied expertise extends to highly complex structured financings secured by parties involved with commercial real estate, to repackagings and structured notes, as well as to representations of industry associations. In addition to the private sector, we are counsel to multiple sovereign debtors and have participated in virtually every significant securitization of emerging market sovereign restructured debt. The firm also provides clients with unsurpassed knowledge and expertise in the taxation of structured products; one of our tax partners co-authored the definitive treatise on this topic, Federal Income Taxation of Securitization Transactions (3rd Edition).
With 12 offices around the globe, Cleary Gottlieb advises on the structuring of asset-backed transactions in virtually every major international financial market. Our clients receive tailored advice on every aspect of their transactions, as our structured finance team draws on experts from related disciplines and other practice areas to attain the best possible legal execution. The firm always works toward efficient and cooperative solutions that meet the specific business objectives of our clients.
Aug 01, 2008
In July, Cleary Gottlieb represented the underwriters, including Bank of America, Barclays, Citigroup, Deutsche Bank, Goldman Sachs, Greenwich, JP Morgan Chase, Lehman, Morgan Stanley, and UBS, in 16 Freddie Mac, Fannie Mae and Ginnie Mae mortgage-backed transactions, representing more than $7 billion of mortgage-backed securities. This activity brings total agency mortgage-backed deals handled by the firm in 2008 to more than $59 billion.
In general, the "agency" transactions involve the issuance of mortgage-backed securities, in each case guaranteed by Freddie Mac, Fannie Mae or Ginnie Mae. Ginnie Mae is part of the U.S. government, while Freddie Mac and Fannie Mae are government-sponsored, publicly-owned companies. In each transaction, the underlying assets were residential mortgage loans. The cash flows on these mortgages support the issuance of securities. The securities were issued in multiple classes, with some of the deals issuing more than 50 classes.
This type of mortgage securitization—originally known as a CMO—was pioneered by Cleary Gottlieb in 1983, and now accounts for roughly one-third of the total debt issuances on Wall Street. Economists estimate that the existence of securitizations has reduced prevailing mortgage rates in the United States by about 1/2 of 1% per annum since their introduction.
“‘A cut above other firms in terms of depth of expertise, cross-disciplinary capabilities and institutional recognition’ ... ‘able to comfortably advise on the full swathe of derivatives regulations and products, whether in OTC, exchange-traded or securitised format.’”
Chambers Global: USA (2008)
“For many commentators, Cleary is ‘the best derivatives shop, period. From equity to credit products, from securitized to OTC derivatives into futures and commodities, they just have the best continuum of people’ ... The team is [also] particularly adept at CLO, CFO and synthetic CDO transactions.”
Chambers USA (2008)
“Market onlookers agree that ‘Cleary Gottlieb carries a national reputation for doing terrific structured finance work.’”
Chambers USA (2008)
“...Described by clients as compromising ‘committed performers of the highest quality who never let us down’...”
The US Legal 500 (2008)
“‘By far the most talented group out there’ ... ‘setting the standard others aspire to.’”
Chambers Global: USA (2007)
“‘One of the best teams to manage large-scale offerings in this risk-laden jurisdiction.’”
Chambers UK (2007)
“The team delivers an extremely high standard of service and excels in its chosen niche of expertise: complex and high-value transactions in the field of mortgage securitization.”
Chambers USA (2007)