“Zoe Greenwood, vice president of investment advisers of the Foundation, was browsing the offering memorandum for a new commercial mortgage-backed securities (CMBS) deal with the April 1, 2010, a time when opportunities for mortgage investors Sales were dark to the point of comic CMBS. This new agreement represents the first opportunity to purchase CMBS backed by loans to more borrowers because credit markets have closed the pipeline of securitization in June 2008. offer a new opportunity to Greenwood investment suggest latest client of his firm. had planned to recommend an extension of the activities of traditional commercial mortgage your client, but these new obligations looked intriguing. CMBS could offer new customers a superior risk-return trade-offs with respect to the mortgage lending? ”
by
Craig Furfine,
Mike Fishbein
Source: Kellogg School of Management
35 pages.
Release: June 19, 2013. Prod #: KEL757-PDF-ENG
I loan Back: Investing commercial mortgage after the 2008 financial crisis solutions Case
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Zoe Greenwood, the vice president at Foundation Investment Advisors, was peeking through the offering memorandum for a fresh commercial mortgage-backed securities (CMBS) deal on April 1, 2010, a time when the chances for commercial mortgage investors were hopeless to the point of comical. This new CMBS deal represented the very first chance to purchase CMBS backed by loans to multiple borrowers since the securitization pipeline in June 2008 had closed. The offering gave a fresh investment opportunity to Greenwood to propose to the latest customer of her company. These new bonds seemed intriguing, although she’d intended to urge an expansion in her customer’s conventional commercial mortgage company. Could the new CMBS offer her customer a superior risk-return tradeoff compared with making individual mortgage loans?
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