The Risks of Derivative Products in Commercial Real Estate

Jeff Snyder was on yesterday and he was talking about commercial real estate. We get a lot of questions about it. So what's your idea to say? Well, because securitized structures, we started structuring illiquid loans so that they could be packaged as liquid collateral. It was a good idea way back in the 70s and 80s when it really started. But there's a downside to that too Because you could be packaging loans that on the surface seem like they're worth putting it together in a pool.