In a panel titled "Let's Get Creative: Different Deal Structuresfor Different Deals," and moderated by Kenneth Balin, managingdirector and principal at AMC Delancey Group Inc., Mark Mutkoski,principal of True North Management Group, a mezzanine lender,stated that spreads on small loans are almost as tight as on largeloans, a sign, he suggested, that the sector is at the top end ofthe credit market. He also said that rating agencies are beginningto balk at some deals. "It's a great time to be a borrower, but itwon't last," he said.

Andrew Benioff, managing partner at BlueStone Real EstateCapital, noted that underwriting is easier today due to moretransparency within the real estate industry. However, he addedthat because of competition on both the debt and equity side,"people are stretching to put money on the street." Further,spreads on B pieces have "slimmed considerably," he said.

Both Mutkoski and Richard Mandel, founder and president ofRamsfield Hospitality Finance, said that loan-to-value ratios haverisen in recent years. Both executives also expect that some dealsmade today will encounter difficulties in the future due tochanging market conditions.