Ten Ways to Structure Deals So They Don't Blow Up
The major reasons why deals blow up even after being fully underwritten is inextricably tied to how well the originator and the underwriter understand the requirements of rating agencies and B-piece buyers. Unlike portfolio lenders who buy and hold real estate debt for their own account, a commercial mortgage-backed securities (CMBS) loan underwriter is more concerned about what bond investors on Wall Street want, how they perceive the credit risk in the deal and the marketability of the loan.
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