/biz/ - Business & Finance

The banks have wrapped up neighborhoods and non-commercial buildings into Commercial Mortgage Backed Securities(CMBS). The Federal Reserve(FED) provides liquidity to banks from CMBS. CMBS etf top holdings are federal home loan mortages. In just one move, Morgan Stanley packaged 2,106 single-family homes in CMBS and they are not alone...Also with CMBS if you have 50% of a unit rented then you do not have to fully pay because they are neg AM loans. The vast majority of CMBS loans are not fully amortizing. Instead, most CMBS loans are partially amortizing, while others have partial-term interest-only periods, or are full-term interest-only loans. What this means is that many retail, offices, hotels, etc... have borrowed more than they can pay back. The FED has purchsed 8.9 trillion CMBS to partially support the CMBS market, but has also let slip by a trillion dollar mortgage scam. Now thanks to the lockdowns, many businesses finally realized they can hybrid remote or fully remote operations. This means trillions of dollars worth of commercial are deep under water. Not only will residential asset prices go down, but a cataclysmic collapse of commercial is on the horizon as well. Do with this information as you will.