We reported in our January/February issue how the increasing competition for CMBS leading to a loosening of underwriting standards.among Wall Street firms was
That trend has apparently taken hold of the CMBS market so quickly that one S&P insider has referred to some of the stuff that's been going into the new pools as outright "crap," according to a Bloomberg report.
Based on our conversations with long-time industry veterans, however, this is not a particularly surprising development. Many of them have said that it would be only a matter of months before the conduit lenders would begin to revert to their bad old habits. What's your take? Did you think it would take more time for Wall Street to recover its confidence after the financial crisis?
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