Commentary: Commercial Mortgage-Backed Securities

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, ongoing deleveraging and very limited liquidity conspired to inflict enormous downward pressure on prices of this market. Additionally, technical market conditions are punishing this sector as insurance companies and other traditional investors in this market are having issues of their own.

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

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