Investors seeking to capitalizeon the distressed real estate market would be wise to expand theirfocus beyond commercial mortgage-backed securities, which no longeraccount for the bulk of troubled loans inthe US.
That's according tonew data fromReal Capital Analytics, which is warning that CMBS-based investmentstrategies that worked during the last downturn probablyaren't the best bet at the moment.
In 2007, at the start of thefinancial crisis, 64% of distressed commercial real estate loans inthe U.S. originated out of the CMBS market. But in 2019, that samemarket accounted for just 21% of the risky lending, while banksissued 53% of the distressed loans.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Phillip Bantz
Phillip Bantz is a reporter for Corporate Counsel. Follow him on Twitter @PhillipBantz.
