Browse Tag: Commercial mortgage-backed security

Are we headed for inflation or deflation?

The following guest post is by REALTORS(R) Signature Series Speaker Rob Nahigian, FRICS, SIOR, CRE.

As we focus on the third quarter of 2011, we are faced each day with investment decisions based on projections. Where is the economy headed for the remainder of 2011 or for the next 5 years? Are we headed into inflation or deflation? Are interest rates going to rise or fall?

I recently posed similar types of questions to members of the Charleston Trident Association of REALTORS® during their Commercial Education Program – with opinions differing across the room.  After mixed responses from the audience, I offered my thoughts, along with those of well-respected industry experts.   I let them know that I am in the midst of reading “The Age of Deleveraging” by Dr. Gary Shilling. Shilling’s outlook on inflation is quite bearish.  Shilling feels that the U.S. consumer, after 30 years of spending, is now ready to pay off the bills and “stash the cash.” He also feels that Governments cannot afford to spend more money either.

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Lenders And Special Servicers Avoiding Foreclosures, Managing Recovery

Commercial property in Carnotstr., Berlin.

Securitizing commercial real estate financing into CMBS was a trend that hit a peak before the economic downturn of 2008.  Defaulting on financing that underlies instruments from which shares were sold to investors calls for the use of “special servicers” – management companies who, upon the event of a default of a given loan, represent the interests of those clients who own pieces of the troubled commercial mortgage-backed security.   These companies are, in much the same way as banks in similar situations, under great pressure to avoid foreclosures.  These specialists in dealing with defaulted mortgagel oans have been leading the way in creative methods to do just that.

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