Commercial Real Estate, CMBS and the Free Market

In the early 1990’s I created the CMBS industry to fill the single largest unmet need in the history of the U.S. real estate market. Literally all lenders had abandoned the business simultaneously, thus threatening every single owner with the risk of massive if not total loss.

The idea was simple: apply the same securitization technology to real estate as had already been applied to the residential mortgage industry. The challenge involved persuading all of the skeptics who needed to come aboard; including bond buyers, whose capital would effectively fund loans, and the rating…