Real Estate and Planning lunchtime seminar: Safe Collateral, Arm’s-Length Credit: Evidence from the Commercial Real Estate Market

Room 108, Henley Business School Whiteknights Campus, University of Reading, Reading

Dr Joseph Nichols Principal Economist, Federal Reserve There are two main creditors in commercial real estate: arm’s-length investors and banks. We model commercial mortgage-backed securities (CMBS) as the less informed source of credit. In equilibrium, these investors fund properties with a low probability of distress and banks fund properties that may require renegotiation. We test […]