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CMBS

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  • Lehman Brothers was on the verge of closing a distressed commercial mortgage-backed securities fund with a target amount of $1.25 billion before filing for bankruptcy.
  • Lehman Brothers is working to sell fixed- and floating-rate commercial mortgage-backed securities that it was holding on its balance sheet.
  • Two European commercial mortgage-backed securities deals have Lehman Brothers, which filed for bankruptcy this morning, as a major tenant.
  • JPMorgan is reducing staff in its commercial mortgage-backed securities group as a result of the bank’s acquisition of Bear Stearns as well as low origination volume.
  • Growing numbers of European commercial mortgage-backed securitizations facing loan-to-value covenant breaches are raising the concern of conflict between different classes of investors.
  • The growing numbers of serious breaches in European commercial mortgage-backed securitizations due to falling property values have raised the concern of a conflict of interest between different classes of investors.
  • A Cohen & Co. fund buying primarily distressed mortgage-backed securities and other commercial and residential mortgage-related products has so far raised about $100 million and likely will grow to between $300-500 million, according to a source with knowledge of the fund.
  • Credit Suisse’s Titan Europe 2007-2 transaction has become the second in the series to be hit by a rating action as a result of the poor performance of the underlying assets.
  • Secondary market trading in U.S. structured products has been relatively quiet, a reflection of the summertime lull and current market conditions.