Securitization
Securitization turns pools of commercial mortgages into bonds that investors can buy. The hub covers the instruments and the parties on each side of that trade, from borrower to bondholder.
Readers can settle how a conduit loan differs from a floating-rate bridge loan placed in a collateralized loan obligation, and why the collateral behind each behaves differently. Questions about subordination, debt yield, loan to value and the pooling and servicing agreement all get answered in plain terms. Others ask who originates the loans and who buys the rated and unrated bond classes. A special servicer steps in after default. Offering memorandum disclosures and the trustee reports that follow closing are explained so a sponsor or family office can read them with confidence.
- CRE CLO Issuance Cycles and What Drives Them
CRE CLO issuance swung from a large peak to a thin trough and back. Learn what drives volume, with a worked coverage example and common reading errors. - How Agency CMBS Differs From Private Label CMBS
Agency CMBS carry an agency guaranty on specified classes while private label CMBS rely on deal structure. Mechanics, principal timing and a worked loss case. - How CMBS Securitization Works From Loan to Bond
Trace how a commercial mortgage moves from origination through aggregation and a trust into CMBS bonds, with a worked example of loss allocation by class. - How CRE CLOs Differ From Conventional CMBS
How a CRE CLO works, how managed collateral and coverage tests differ from conduit CMBS and REMIC trusts, with a worked overcollateralization calculation. - Managed CRE CLOs and Reinvestment Periods Explained
Managed CRE CLOs let a collateral manager reinvest principal for one to three years. Learn the mechanics, eligibility tests and a worked cash comparison. - Reading Credit Quality in CMBS Deals
Learn how CMBS investors assess property cash flow, borrower equity and pool concentration, and use debt ratios to test credit quality under financial stress. - The Origins and Rebuilding of the CMBS Market
How CMBS grew out of the savings and loan cleanup, seized up in the financial crisis, and was rebuilt around first-loss buyers and shorter loan terms. - Who Buys CMBS and Who Originates It
Banks and investment banks originate most CMBS loans, while life insurers and money managers buy the senior bonds and specialist funds buy the B-piece. - Why Securitized Loan Modifications Are Harder
Securitized commercial loans need servicer authority, consultation & sometimes noteholder votes before relief. A worked example prices a 90 day delay.