Development and structuring of CMBS in Australia

CMBS are an important segment of the real estate debt markets which reduce the commercial property sector's dependence on bank financing. Until the advent of the credit squeeze in Q3:2007, the CMBS market was one of the most dynamic and fastest-growing sectors in the capital markets, for a market which was virtually non-existent prior to 1990. Very little academic literature exists on the development and structuring of Australian CMBSs. Through a cogent review and explanation of features of international and Australian CMBSs, the book provides a better understanding of the status and changing nature of the Australian CMBS market. Artificial neural networks and ordinal regressions are used as alternative methods to determine CMBS credit ratings. Surveys on Australian CMBS arrangers and issuers provide insights into structuring issues they consider necessary to obtain a high credit rating and pricing issues necessary for the success of an issue. The findings of this book can be useful to revive the frozen Australian CMBS market, and should be especially useful to students and professionals in property investment and finance.