There’s a lot of attention on commercial real estate loans and how they perform as a proxy for the health of markets and investments. CMBS typically gets extra scrutiny because these are loans with relaxed underwriting — and maybe more representative of CRE that could face problems than properties purchased under strict requirements with a good likelihood of getting refinanced.
However, KBRA released an analysis of two types of loans on multifamily properties that are similar in many ways but differ enormously in their distressed rates.
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