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Agency risk in CMBS default resolution : a case study of the Peter Cooper Village - Stuyvesant Town mortgage loan default

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dc.contributor.advisor W. Tod McGrath. en_US
dc.contributor.author Lai, Hengwa en_US
dc.contributor.other Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. en_US
dc.date.accessioned 2011-04-04T16:18:42Z
dc.date.available 2011-04-04T16:18:42Z
dc.date.copyright 2010 en_US
dc.date.issued 2010 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/62055
dc.description Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate , 2010. en_US
dc.description Cataloged from PDF version of thesis. en_US
dc.description Includes bibliographical references (p. 54-56). en_US
dc.description.abstract Between 2010 and 2018, approximately $410 billion of maturing CMBS loans are expected not to able to refinance; that is, they are in high risk of default. The current real estate downturn has not only pushed delinquencies to a historic high but has also inflicted losses to bondholders. When losses are realized through foreclosure, junior bondholders can have the face amount of their investment significantly reduced with no cash payment, while the senior bondholders receive partial repayment of their investment at par. Alternatively, loan modifications, or workouts, yield different outcomes which are more favorable to the junior bondholders. The rising tide of loan defaults and loan workouts will certainly exacerbate the ongoing "tranche war" among the CMBS bondholders. Consequently, it is imperative to understand how the CMBS servicing structure governs default resolution and loan workouts. By analyzing the recent default of Peter Cooper Village-Stuyvesant Town, this study will examine the case of the largest commercial real estate default in the US history as a real life example to illustrate whether the overlapping role of B-Piece buyer and Special Servicer adversely affects workout prudence. Through interviews with industry professionals and a review of the Pooling and Servicing Agreement (PSA), and a review of the transcript of the CMBS Investment Grade Bondholder Forum in June, 2010, the study proposes structural changes that could potentially mitigate agency risk inherent in the current servicing structure.. en_US
dc.description.statementofresponsibility by Hengwa Lai. en_US
dc.format.extent 56 p. en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582 en_US
dc.subject Center for Real Estate. Program in Real Estate Development. en_US
dc.title Agency risk in CMBS default resolution : a case study of the Peter Cooper Village - Stuyvesant Town mortgage loan default en_US
dc.title.alternative Agency risk in Commercial Mortgage Backed Securities default resolution : a case study of the Peter Cooper Village - Stuyvesant Town mortgage loan default en_US
dc.type Thesis en_US
dc.description.degree S.M.in Real Estate Development en_US
dc.contributor.department Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development. en_US
dc.identifier.oclc 707932534 en_US


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