Rating agency KBRA just came out with a look at securitization credit performance in commercial real estate in the wake of the pandemic. The news? “CRE securitization credit performance among conduit, single borrower/large loan (SB/LL), and CRE collateralized loan obligation (CLO) transactions has held up reasonably well,” the report noted. “That is not to say that there were no major challenges along the way, but lessons learned from the GFC [global financial crisis] helped to mitigate the credit impact of COVID.”

Not letting the perfect become the enemy of the good, the ability of changes since the GFC to manage challenges is terrific news. A major trigger of the global financial crisis was securitization. Complex derivative vehicles that were supposed to free capital for investment became ticking financial bombs.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.