tag:blogger.com,1999:blog-7693451999817479352.post974362314707779391..comments2023-10-22T17:43:54.334-04:00Comments on The CRE Review: All is Lost!crabsofsteelhttp://www.blogger.com/profile/13395961726023130183noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7693451999817479352.post-73554405641471958472011-08-23T14:58:13.750-04:002011-08-23T14:58:13.750-04:00with Cantor making CRE loans, no they won't!with Cantor making CRE loans, no they won't!crabsofsteelhttps://www.blogger.com/profile/13395961726023130183noreply@blogger.comtag:blogger.com,1999:blog-7693451999817479352.post-55652400392280992912011-08-18T20:49:03.119-04:002011-08-18T20:49:03.119-04:00Does this mean I won't be able to continue fil...Does this mean I won't be able to continue filling up the bubble with air? Was fun for the 9 months or so that it lasted, but we seem to have gotten back to 2007 much too quickly, with "value add" projects trading at core like prices despite 50-75% of leases rolling over in the first three years (and nice rent growth assumed to produce that sweet underwritten 15-20% IRR). From the operator side, its actually nice to think that pricing will come back down to a level that will enable someone to buy and not have to smoke crack when doing the assumptions, but the exits will be an issue.NovaCREnoreply@blogger.comtag:blogger.com,1999:blog-7693451999817479352.post-10572387742071057892011-08-18T16:56:18.014-04:002011-08-18T16:56:18.014-04:00Does it come as a surprise that CMBS AAA ratings w...Does it come as a surprise that CMBS AAA ratings were as worthless as RMBS ratings? It doesn't take a lot of 70 /30 hope note mods to turn an AJ into an IO. Of course, all sell-side model predict losses which impair AJs only slightly if at all; they also just happen to be long bonds. Morale of this story: diversity-based models do not work, and if you use one, you will probably blow up.crabsofsteelhttps://www.blogger.com/profile/13395961726023130183noreply@blogger.com