There are a number of tools to assess CMBS value. The first relates to the language of credit performance itself. Property markets overall remain reasonably disciplined; however, there are two yellow flags. Property price firmness may be overdone, and the authors would underweight the apartment sector. They are also cautious about larger trophy transactions, which have been such a major part of 2003 large loans. The second tool is Credit Drift, a proprietary technique that J.P. Morgan Securities Inc. has been using since 1998. Credit Drift deals broadly with discipline, but it also deals with loan-level real estate issues. The third tool grows out of a study of loan underwriting performance. The authors examine the ten largest underwriters, representing roughly $116 billion out of $156 billion of pre-2002 issuance. While large loans come out favorably with implied lower default frequency, the authors think it is important that investors insist on shadow-rating for most large loans. Historically, structuring in large loan deals provided pooled credit enhancement to protect investment-grade bonds. With the proliferation of A/B notes and rake-like structures, that is much less true today.
1010 Affordable Housing Amazon Amenitization Architecture Artificial Intelligence Asia Australia automation Autonomous Vehicles bonds Borrowing Constraints Brexit California Canada Capital Business China Co-Working Environment coastal markets cold storage Colombia Commercial Brokerage Commercial Real Estate commissions Congestion consumer bias covid-19 CRE credit card market Credit Default Swaps Credit Insurance Credit Risk Transfers Culture Data Analytics data centers Data Collection Technology Debt Market Demand Demographics Density Development Discrete Choice disruption Diversity drones e-Commerce Economic Corridors economic policy economics education election studies Equity Funds Equity Market Ethnic Factors Europe Fannie Mae financial asset management Foreclosures Foreign Policy France Freddie Mac general equilibrium Global global economy Global Financial Crisis Globalization great depression Great Recession healthy buildings Hedonic hospitality Housing & Residential housing boom Housing Disease housing prices Housing Supply Identity Income Inequality India inflation Inter-generational mobility interest rates Investing jobs labor market Lagging Regions land use regulation Language life sciences Macroeconomics malls Market Pricing megacities Microeconomics Migration Minimum Payments Mixed-Use Mobility moral hazard mortgage insurance mortgage market Mortgage Rates Mortgages Multi-family Nation Building Non-Traditional Mortgages Office Market office sector pension funds Placed Based Policies Political Risk Price Discovery Private Equity Business public health public policy Public Schools real estate brokerage Real Estate Investment Real Estate Investment Trusts Recession Rental Retail Retirement reverse mortgages Risk Adjustment risk management risk-shifting robotics single family housing Slums Sorting South America Spatial Regions spillover effect stimulus package Sub-Prime Mortgages Supply Chains Sustainability Technology telecommunications trade transportation unemployment United States Urban Urbanization Warehouse welfare work from home