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Structuring Issues for Commercial Mortgage-Backed Securities in Australia

Author/s: Bwembya Chikolwa

Date Published: 1/01/2008

Published in: Volume 14 - 2008 Issue 3 (pages 334 - 355)

Abstract

This paper presents survey results of factors considered by originators/issuers and arrangers of Australian Commercial Mortgage-Backed Securities to obtain high credit ratings and those considered in the pricing of the issues to ensure their success. Rating of issues was found to be the main reason why investors invest in CMBSs and provision of funds at attractive rates as the main motivation behind CMBS issuance. Furthermore, asset quality was found to be the most important factor necessary to obtain a high credit rating, supporting the previous industry view that the assets backing the securitisation are its fundamental credit strength.

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Keywords

Arrangers - Commercial Mortgage-Backed Securities - Credit Rating - Issuers - Structuring

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