Aite Analyst Evaluates the CMBS Market’s Past and Present

""Aite Group, LLC"":www.aitegroup.com/, is speaking out on contemporary issues in the commercial mortgage-backed securities (CMBS) marketplace.

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The company's senior analyst, John Jay, recently released his statements in response to a New York Times article evaluating the potential impact of pre-crisis commercial loans.

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Within the publication's report, the Times discussed the looming due dates associated with commercial mortgage loans that were issued five-plus years ago. However, Jay's commentary indicates that the industry is striving to remain future-focused by extending mortgages that ""will make safer investments due to increased detail on performance.""

Aite's senior analyst noted, ""CMBS deals are not immune to the underlying factors that cratered the residential mortgage markets. Factors such as easy underwriting standards and rosy valuation projections can easily conspire to make what once seemed to be a sure-fire investment turn into a pumpkin.""

Elaborating on the state of the industry, Jay said, ""The CMBS marketplace has moved on, however. All actors in this space are demanding ever more granular loan level performance detail and loan modifications (and are getting it, thanks to data and analytics vendors).""

""Deeper analysis by capital-at-risk players will only make this a more efficient and properly risk-adjusted marketplace going forward,"" added Jay, concluding his forward-looking statements.