tlp89

CMBS Delinquencies Rise: Should the Government Step In?

The CMBS market situation is far more complex than the RMBS market. The Author's comparison is misleading, as RMBS has had MUCH higher delinquencies (esp in subprime 30%+) than the rest of the residential sector. The comparison should be between residential mortgages that were securitized - not all residential mortgages.

Also, why the delinquency rates have had large gains % wise - the absolute gains are still somewhat minor (CMBS delinquencies are @ 1%).

So bottom line if you are going to compare apples to apples than you have to compare CMBS to RMBS and even those two ABS products are completely different - even though they are both real estate. So the comparison makes little sense.