We document the default rates of CMBS loans during the recent financial crisis. The 30 , 60 , and 90 day delinquency rates of conduit CMBS loans have risen sharply since late 2008 and have reached levels that are about 7 times of the 10-year average. Comparing to the previous crisis in the early...

Although most studies argue that expansive secondary markets for loan sales tend to enhance opportunities to manage risk, lower loan rates, and improve access to credit, other studies point to situations in which locally based credit providers remain important (e.g. relationship lending in the...