CMBS: creating a performance history
Article Abstract:
The performance history of commercial mortgage-backed securities was examined to analyze the risks associated with their true credit exposure. Cash flows of the security were directly linked to the cash flow of the underlying real estate. Risk compensation levels were then examined to determine how different kinds of tranched mortgage pools would behave at different points in the real estate cycle. Results indicated significant differences across all tranche kinds resulting from variations in the underlying pool mix.
Publication Name: Real Estate Finance Journal
Subject: Real estate industry
ISSN: 0898-0209
Year: 1999
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The hedge fund menagerie
Article Abstract:
A hedge fund is any fund that utilizes a strategy or a set of strategies other than investing in bonds, shares and money markets. A hedge fund can support a range of defensive and opportunistic strategies, such as leverage, short selling, derivatives, and concentrated investments. Mortgage-backed securities investing is one of several hedging strategies utilized by a hedge fund. The strategy promotes high returns, a broad range of products, high credit quality and liquidity.
Publication Name: Real Estate Finance Journal
Subject: Real estate industry
ISSN: 0898-0209
Year: 1999
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Turmoil and losses in the CMBS market
Article Abstract:
The commercial mortgage backed securities market has experienced several problems since the middle of 1998. Conduits have suffered significant losses while other lenders have decided to pull out of the market. In addition, a set of market forces are anticipated to negatively affect the state of real estate debt markets. Commercial mortgage lenders are advised to examine their sensitivity to these factors to realize future successes.
Publication Name: Real Estate Finance Journal
Subject: Real estate industry
ISSN: 0898-0209
Year: 1999
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