Monday, April 27, 2009

CMBS delinquiencies still on the rise

OK, now this is one we can expect. The question is, where does it end? Loans are coming due, CMBS is dead and equity will need to be found to refinance stuff even when you can find a lender. Call it both a great opportunity and a scary time, depending on where you sit at the table. Thoughts, anyone?

3 comments:

Kevin Kleen rpakkleen@gmail.com said...

There will be many Chapter 11 restructurings. Lenders will be unwilling (or unable, given their CMBS constraints) to extend matured loans, and borrowers will file Chapter 11 and propose reorganization plans based on historic market rates (say LIBOR+3% = 3.5%)with a 5 year term to allow for a market recovery. Even a partially leased project can service a lot of debt at that interest rate. Discussed in more detail at the link below

http://residentialpropertyanalytics.blogspot.com/2009/04/this-time-is-very-different-attack-of.html

CountingSheep said...

Thank you for posting that Kevin!

David Stejkowski said...

Yes, thanks for posting that information and the link to a very good blog!

 
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