With trillions of dollars of real estate-related debt coming due in the near future, commercial mortgage-backed securities (CMBS) are making headlines again. This has raised concerns about whether there’s a looming bubble ready to burst in a 2008-esque market crash. This time the case can be made that the CMBS market looks very different.
We learned a lot more from the 2008 financial crisis than is sometimes realized. Due to the way CMBS deals are structured today, there have not yet been significant losses of principal. While…
