XLF - Will Commercial Mortgage-Backed Securities Take The Markets Down Like In 2008?

2024-07-12 08:00:00 ET

Summary

• Mortgage-backed securities were a major cause of the 2008 stock market crash.
• The current commercial mortgage-backed securities seem to be a large issue.
• You have to engage in due diligence regarding the banks that house your hard-earned money - and you certainly cannot rely on the Fed.

We have been writing a lot about CRE lending and its impact on U.S. banks. Another part of this story is that quite a lot of CRE loans are packed into bonds, which are called CMBS (commercial mortgage-backed securities). There have been several interesting pieces of news that led to some notable movements in the CMBS market....

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