FDIC’s Plan to Securitize Assets Could Boost CMBS
Scott Tross says the FDIC's apparent plan to bundle performing real estate loans and sell them as CMBS is likely to attract the usual buyers of CMBS -- pension funds, insurance companies, mutual funds, institutions and wealthy individual investors. He notes that there are more factors indicating the market will want the securities -- undeployed cash, a paucity of CMBS for several years, and an apparent strengthening of the real estate and credit markets -- than factors arguing against market acceptance.