Hedge funds see opportunity in beaten-down commercial mortgage-backed securities

Volatile recovery


Commercial mortgage-backed securities (CMBS) are making a comeback after dying a death in 2008 when overleverage led to indiscriminate selling. The revival is driven by a new generation of leaner, meaner products and better than expected performance by legacy CMBS.

Those willing and able to exploit the opportunities created by an inefficient market with high barriers to entry and conservative ratings can benefit from attractive risk return metrics.

Between 2002 and 2007 issuance of CMBS in the US

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: