tag:blogger.com,1999:blog-21846828.post7420245057058648393..comments2024-01-14T16:01:08.962-08:00Comments on The Rational Realist: Digging DeeperRational Realisthttp://www.blogger.com/profile/08886526093283532105noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-21846828.post-34892991914503369372012-04-26T11:13:41.948-07:002012-04-26T11:13:41.948-07:00Moody's is saying the upcoming CMBS deals incl...Moody's is saying the upcoming CMBS deals include mortgage pools that exceed Moody's estimate of underlying collateral value. I suspect the underwriting bank's collateral value is higher than Moody's. Value is a tricky estimate and varies depending on inputs. Look at the debt service coverages - which are all greater the debt payments. Multifamily has historically had high loan to value ratios. Underwriters would have a hard time selling these deals of the loans were worth more than the collateral.Rational Realisthttps://www.blogger.com/profile/08886526093283532105noreply@blogger.comtag:blogger.com,1999:blog-21846828.post-73890169891596202852012-04-26T08:58:31.129-07:002012-04-26T08:58:31.129-07:00Can you explain this? I don't understand this...Can you explain this? I don't understand this at all and I think you could let me know if I'm missing something. Article is from CoStar: http://www.costar.com/News/Article/Frothy-CMBS-Deals-Return-to-the-Days-of-Loans-Exceeding-100-of-Value/137897?ref=/News/Article/Frothy-CMBS-Deals-Return-to-the-Days-of-Loans-Exceeding-100-of-Value/137897&src=rss <br />"Frothy: CMBS Deals Return to the Days of Loans Exceeding 100% of Value<br />Five New CMBS Deals Hit the Market this Month<br />By Mark Heschmeyer<br />April 25, 2012<br />Moody's Investors Service raised a red flag in its quarterly review of the U.S. CMBS market, saying the leverage on loans backing upcoming CMBS conduit transactions is poised to increase. Several conduits in its second quarter 2012 CMBS deal pipeline have collateral pools with average leverage approaching or exceeding 100% Moody's loan-to-value ratio (MLTV)."Anonymousnoreply@blogger.com