Boscov CMBS Woes Worry Market
The commercial mortgage-backed securities market reportedly is concerned over plunging values of real estate owned by bankrupt retailer Boscov’s Department Store. The properties have seen a dramatic drop in value from $182.7 million at the time the loans for the property were originated to $40.5 million, and investors are concerned that if losses have begun hitting highly rated CMBS that contain Boscov’s-backed loans, they may be next to suffer. Delinquencies on commercial mortgages packaged and sold as bonds is said to be up nearly 200% in the past three months.
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