Megatrends in Retail Real Estate pp 201-212 | Cite as
Retail Mortgage Securitization
Abstract
This chapter analyzes the evolution of the commercial mortgage backed securities market and the ongoing need to provide a secondary market to maintain liquidity in the commercial mortgage market. The continuation of the CMBS trend offers opportunities for traditional lenders to maximize liquidity and shift the risk of loss from holding whole commmercial loans to holding investment grade securities. The existence of a viable secondary market provides market efficiency and expanded opportunities for borrowers to access capital through direct and indirect securitization. Even for borrowers obtaining traditional loans, many lenders are changing their lending programs, documents, and criteria to preserve their ability to securitize these loans and subsequently sell them in the secondary market to maintain an exit strategy. Rating agency criteria for maximizing ratings on retail properties also are discussed.
Keywords
Real Estate Rating Agency Investment Banker Secondary Market Loan PortfolioPreview
Unable to display preview. Download preview PDF.
References
- American Banker. (1994). August 9.Google Scholar
- Cole, Rebel A., and George W. Lenn. (1994). “Did Commercial Lending Cause the Banking Crisis?” Washington, DC: Board of Governors of the Federal Reserve System.Google Scholar
- Commercial Mortgage Alert. (Various issues).Google Scholar
- Corcoran, Patrick J., and Doen-Li Kao. (1994). “Assessing Credit Risk of CMBS.” Real Estate Finance (Fall).Google Scholar
- Fitch Research. (1992). “Commercial Mortgage Stress Test.” June 8.Google Scholar
- Goldstein, Avi. (1995). “Conduit Programs: Fad or Future of Commercial Real Estate Lending?” Real Estate Review (Winter).Google Scholar
- Real Estate Finance and Investment. (1995). March 6.Google Scholar