Professor Elam

THat would be a commercial mortgage backed security. And the photo above is of the 11,000 apartment units apparently going into default for the owners of these CMBS.

The previous post was of a small strip center in San Antonio, this is the big time. Click on the article and take a look at who is losing on this deal. Yes that would be the California Pension for the State CALPER as well as their California Teacher Retirement, even the Church of England is losing on this one. 

This is what I meant by the downward spiral. A property defaults, the holders of the debt lose their principal, the property goes to foreclosure, what to do, auction, if so, to who, there is no credit and certainly no more buyers for another CMBS. Note the tenants fought an increase in their rents, so now who will maintain the property, careful what you wish for! 

This is why I assigned papers on the banks and REITs, you will recall I returned most of those papers for a re write, most of you naively assumed everything would now magically be okay, I suggest you do more macro research!