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  • Citigroup, Capital One See Increasing Risks in CRE [Housing Tracker] [View article]

    Thanks Judy, the quotes you cited reflect the weak state of the commercial mortgage backed securities (CMBS) and other CDO's.

    "While an improving default rate is positive for the sector, the decline was largely caused by the elevated amount of new issuance that entered the CMBS market in 2006.”

    I am really worried about how the market will adjust to the huge write-downs in the commercial mortgage sector. It was amazing how much IYR declined with the Fed's first mention that "commercial real estate was slowing." The Fed must be very careful here to not state the truth too clearly. They walk a very narrow path. I would hate to be in their shoes these days.
    Jul 25 22:07 pm |Rating: 0 0
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