Commercial Mortgage Backed Securities

Catalog description

This course introduces the tools and skills needed to evaluate the interplay between real estate loan markets and overall fixed income/structured finance markets. The course will address the influence of micro- and macro-economic conditions on fundamental real estate space/leasing markets, property/asset markets, and capital market conditions (e.g., loan and bond markets). Particular focus will be given to achieving a mastery of commercial mortgage backed securities (CMBS) components and their structuring as well as to providing a rich understanding of the economic and legal structure of CMBS and the impact of various market participants on the final terms of a bond transaction. Additionally, due to the “global” nature of real estate, the course will address the role of the CMBS market in the financial crisis and on the commercial real estate markets, on the formation and flow of funds within capital markets, the emergence of new investors since the crisis, and the current appetite of the various investor groups for the CMBS product. The course will be enriched with discussions on the potential impact of CMBS on the economy in general, as well as its implications for real estate business cycles. Remember, this is a graduate-level course and, as such, it is as much about learning a process (how to ask the right questions, how to solve problems, and how to work within a group setting) as it is about learning specific concepts.