Brian Kelly

S&P Lowers Insurers Ratings, What About Banks' $400B CMBS Losses?

Rocknbob,

CMBS issuance did not increase during this period, it declined. In fact it has totally seized up. I suspect this is the reason commercial banks still hold so many commercial mortgages - there is no securitization market to sell the mortgages into.


On Feb 27 07:01 AM Rocknbob wrote:

> Mr. Kelly,
> Correct me if Im wrong , your first graph shows almost constant CMBS
> ownership/distribution from Q107 thru Q308. If thats true, then you're
> assuming the net # of CMBS issued increased during the time.
>
> your statement "The chart illustrates that commercial banks have
> not only been the largest holders of commercial mortgages, but they
> have been increasing their exposure even during the economic crisis."
> indicates this.
>
> Maybe you could indicate whether the absolute amount of CMBS issued
> increased.