Commentary: Update on Commercial Mortgage-Backed Securities: December 2008

Commercial mortgage backed securities (CMBS) have been and continue to be an integral part of some of SEI’s fixed income strategies. Over the last several weeks, deteriorating credit fundamentals, confirmation of an economic recession, forced selling and a lack of buyers conspired to send CMBS prices plunging. Insurance companies and other traditional investors in this market are struggling themselves and have not only stopped buying, but have been forced to sell some of their existing CMBS holdings in order to raise cash.

Given these extraordinary events, we hope a review of CMBS securities and an update on market conditions will provide some insight into why SEI remains confident in CMBS and the role they play in a diversified portfolio.

Download "Commercial Mortgage-Backed Securities" Commentary (PDF)