Journal of Hospitality Financial Management Journal of Hospitality Financial Management

Abstract

Commercial mortgage-backed securities (CMBS) have emerged strong and have faced a generally positive credit environment since the last recession. As the market grew out of recession in the early 1990s, the primary focus remained on providing better and safer returns to investors. Tied in their lock box, a period that con-tractually prohibits the borrower from all prepayments, the borrowers kept holding tightly onto their loans. Currently, as the delinquency rate on loans has been on the rise