In the dark days of the downturn when financial markets seized up, Wall Street firms tried to jump-start the commercial-mortgage-backed securities business by adding a watchdog into the process to protect investors.
Now, those watchdogs are losing their fangs.
Starting in 2009, most issues of commercial-mortgage securities included a new player: a so-called operating adviser whose job is to make sure bondholders get a fair shake if property owners default on the mortgages underlying those securities.
Read more...Role of CMBS Watchdogs Weakens - WSJ.com
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