Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Kligerman: CMBS Pressures Mount

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

Problems with commercial mortgage-backed securities could aggravate life insurers’ investment headaches, a securities analyst says.

Andrew Kligerman, an analyst at UBS Investment Research, New York, looks at fourth-quarter 2008 CMBS exposure in a new research note.

Moody’s Investors Service, New York, has downgraded more than 1,200 CMBS issues, including 130 AAA issues, since Feb. 4, and the conventional wisdom is that any recovery in the commercial mortgage market will lag behind any recovery in the overall economy, Kligerman writes.

Life insurers with more CMBS issued between 2006 and 2008 and CMBS with weaker credit ratings will be the most vulnerable, Kligerman writes.

Exposure to the 2006-2008 CMBS issues amounts to an average of 13% of book value at the life insurers Kligerman tracks, with a range of 1%to 25%.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.