"The fear in the marketplace is, to some degree, unjustified,"said Jun Han, author of the study and a principal of JHP Capital,at a press conference at the Waldorf-Astoria hotel. "CMBS can be avery good investment if you are a long-term investor."
Han looked at about 20,000 loans in nearly 700 bonds and testedthem against three historical recessions and worst-case scenarios.He found that most investment-grade CMBS will have low instances ofdefaults, losses and yield degradation.
And the fact that CMBS has "mortgage" in its name alone could becausing it problems, Han said.
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