The Financial Markets and Institutions students have their midterm exam on Thursday and at least ONE question will be about Mortgage Backed Securities (MBS) and Collateralized Mortgage Obligations (CMO or CDO). 

Therefore, today's New York Times article about the pending future of Commercial Real Estate and the so far lack of delinquencies of Commercial MBS comes at EXACTLY the right time!  (Laughing - don't they always come at just the right time for me?!!?)

 
Could change soon ...

 

 

 

 

 

 

Vacancy rates in office buildings exceed 10 percent in virtually every major city in the country and are rising rapidly, a sign of economic distress that could lead to yet another wave of problems for troubled lenders.

So we shall see if the call to Congress will be heeded.  For all the talk about Obama the Savior, The House of Representatives is the group that appropriates money and THEY need to start the ball first.  The Senate follows and the the President will enact that legislation.

    The credit market (especially Commercial Paper Market) needs to be opened back up and soon!

 

 

 

 

 

 

Banks and other financial companies have not had the problems with commercial properties in this recession that they have had with residential properties. But many building owners, while struggling with more vacancies and less rental income, will need to refinance commercial mortgages this year.

"We Shall See"