The new international digital currency Bitcoin has found itself in the news quite a bit over the past couple of years. The novelty of Bitcoin’s story is attractive — a currency not beholden to any central bank nor any state is something that causes imaginations to run, and makes us review the relationships between the deals we make and the stuff we use to transfer value in those deals. Dollars are, after all, only one (supremely popular) means of facilitating payment.
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.