Complexity

Another MBA story, this one regarding complexities surrounding CMBS. I was interested, hoping to gain another's insight into special servicing conflicts, or pari passu workouts. It's leaves a lot to be desired.

"they believed in the bond they were offering as well," but it turned into "slices of slices of slices," Fasulo said.

Is he talking about CMBS anymore? He must be talking about some CDO of CMBS, but is just misquoted here. But then, the next quote...

"[Bondholders] have lost track of their investments because there are so many iterations of slicing and dicing," Korologos said. "It's hard to put a finger on what [they] really have. That's how complex it's become."

... is equally confusing.

There's also a half sentence regarding loans maturing 6+ years down the road that seems a little half-baked and premature

loans maturing in 2015, depending on leverage, property markets values, liquidity and appetite for 75 percent to 85 percent leverage at the time of maturity, could face challenges in addition to loans maturing in the near future.

I'd recommend skipping the article, but you just know its going to be on CNBC, or worse, Dateline "How to Catch a Trader" segment with the quote, "These CMBS securities were all sliced and diced to create AAAs, and are just as bad as Subprime". These guys have good pedigrees too.