CMBS and the real estate cycle - Traditional models shed no light on the impact of cycles.

Knowledge of market economic cycles and the relationship of specific proper ty type performance characteristics is crucial to the proper evaluation of commercial mortgage-backed securities. Loan pools that appear equally well diversified may, in fact, behave quite differently. In this article, the au thors show that unexpected and undesirable results may occur ifa full range of specific market level factors are not considered and appropriately mode led.