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Article: The performance of commercial mortgages.
- Article from:
- Real Estate Economics
- Article date:
- March 22, 1999
- Author:
CopyrightCOPYRIGHT 1999 American Real Estate & Economics Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Introduction
As of July 1997, commercial mortgage debt outstanding reached approximately $1 trillion. By way of comparison, outstanding municipal and corporate debt stood at approximately $800 million and $1.3 trillion, respectively.(1) Yet, despite the size of this asset class, very little is known about the investment characteristics of commercial mortgages. Whole loans, once originated, are typically held to maturity within the originator's portfolio. Since most commercial mortgage debt is unsecuritized and sells infrequently, transaction data are unavailable from which to estimate returns. Moreover, the proprietary nature of these data limits the breadth and ...