[cgbg]

Good article—thanks for posting.

From the article:

“The loan, which was originated by JPMorgan Chase & Co. before being converted into a commercial mortgage-backed security (CMBS) and sold to investors”

The big investment bank gets their fees, sells the trash to “investors” aka suckers and then laughs at the stupidity of the suckers.

[proxy_user]

“Institutional investors, such as pension funds, insurance companies, and mutual funds, are significant buyers of CMBS. These investors typically have a long-term investment horizon and are attracted to the diversification, yield, and prepayment protection offered by CMBS.”

These types of institutional investors usually expect some of their purchases not to pay off. They are sophisticated buyers, and are willing to tolerate a 2-3% write-off rate for a 150 basis point boost. They probably balance their portfolios across the risk spectrum.

They’re also big boys, who can afford to take these losses.

[oldplayer]

cgbg,
You reduced to its essence any business school textbook.

[EEGator]

…and then Jamie Dimon pretends to be a voice of reason about financial markets.

[Lazamataz]

The big investment bank gets their fees, sells the trash to “investors” aka suckers and then laughs at the stupidity of the suckers.

I keep seeing adverts in various articles, urging me to invest in commercial real estate. "The timing has never been better."

I laugh my ass off.

[george76]

thanks