Standard & Poor’s had downgraded 15 classes of bonds backed by a $425 million loan secured against the Four Seasons Hotel in New York and 3 other luxury resort hotels. The action was triggered by a drop in cash flow which was 46% below S&P expectations. Surely, the expected cash flow figure had already been [...]
Lately I have been receiving a high volume of calls from appraisers. Appraiser calls are nothing new. Normally, I receive a handful a month calling to ask questions about properties I have sold or asking for my opinion on a particular property they are trying to value. Now, I am receiving several appraisal calls per [...]
Just saw this post on Zero Hedge about a downgrade of a recent Re-REMIC issue by Standard & Poor’s. re-REMIC’s are repackaged mortgage-backed securities of a supposedly more secure pedigree as they were to have been constructed of securities identified to be of better quality and thus less likely to default. Now, just 4 months [...]
There have been a handful of blog posts and various articles written about the curious decision of Standard & Poor’s to upgrade several commercial mortgage backed securities (CMBS) to a triple-A rating just one week after downgrading those same securities to junk or near-junk status of double-B and triple-B minus. What is interesting is that [...]
