The New Administration Hasn’t Come Into Play, Yet

Shlomi Ronen is the managing principal and founder of Dekel Capital.

Investor sentiment hasn’t changed—at least not in a significant way—as a result of the new presidential administration, according to Shlomi Ronen, managing principal and founder of Dekel Capital. Following the election, there was a lot of excitement about the pro-business attitude of the new administration and the potential policy changes, like loosening Dodd Frank regulations. As of now, Ronen says that there hasn’t been a shift in sentiment because investors are still waiting to see what is going to happen.

“It really hasn’t come into play yet. If and when Dodd Frank gets scaled back, it will provide additional liquidity in the market. At that point, we will see what will happen with that liquidity,” Ronen tells GlobeSt.com. “We are primarily talking about the banks and the CMBS lenders. On the CMBS leg, we will see if the bond buyers are going to allow CMBS lenders to no longer risk retain a portion of the securitization, which they have to do now. On the bank side, you still have Basel III regulatory framework that banks have to adhere to, so it may not free up liquidity on the bank side in the long run.”