oh jeez. let's pretend that the first lien is a real first lien and that there can't be mods which imperfect that. what a joke!
I don't follow - can you elaborate?Thanks.
CMBS are backed by what are supposedly first lien loans, i.e. the loan is secured (perfected = wholly) by the real estate. Take a look at some of the recent A/B mods. Specials are restructuring loans with new equity infusions with guaranteed rates of return ahead of the B-notes. The mods of the Empirian loans in MLMT 07-C1 state that if the A-note is paid off at maturity, no payment is due from the B-note. So the B-note can not foreclose.
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