tag:blogger.com,1999:blog-1529519433734975958.post2654824518964085914..comments2023-11-05T01:32:12.181-08:00Comments on Mock The Market: Broadway Partners Defaults, Causes Turmoil in CMBSK10http://www.blogger.com/profile/00635420185722095187noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1529519433734975958.post-46756505857788684622009-01-24T12:07:00.000-08:002009-01-24T12:07:00.000-08:00I was disappointed in the article to be honest. Th...I was disappointed in the article to be honest. The market is working just right - mezz holders are supposed to disagree, so far the mechanisms put into place are working just like they should when a property has problems.<BR/><BR/>Also, a few ubernerd comments. The mezzanine debt was not securitized, and really never is. The CMBS market is made up of just the senior mortgages, with a few exceptions.<BR/><BR/>I'd also argue that foreclosure for a mezzanine investor is more straightforward than with a regular senior mortgage. It is generally well defined, and sure folks are going to disagree and argue and run up legal fees, but they have different interest and millions of dollars on the line. <BR/><BR/>Outside of all the minutiae that contributes to the decision, the junior mezzanine holder has a relatively easy decision - can the property cashflow enough to cover debt service to everyone above them in the structure (or can I cover shortfalls and turn the property around). If so, then foreclose on the equity and takeover the property. If not, turn the keys over to the next guy in line.Dark Spacehttps://www.blogger.com/profile/13613854488437471493noreply@blogger.comtag:blogger.com,1999:blog-1529519433734975958.post-22392545371161617422009-01-21T10:29:00.000-08:002009-01-21T10:29:00.000-08:00Lawyers will be killing it in the next few years. ...Lawyers will be killing it in the next few years. Not too late to sign up for the LSATs.Mr Wrightwoodhttps://www.blogger.com/profile/15000378383151942063noreply@blogger.com