Intermediary Segmentation in the Commercial Real Estate Market

David Glancy, John Krainer, Robert Kurtzman and Joseph B. Nichols
Additional contact information
Joseph B. Nichols: https://www.federalreserve.gov/econres/joseph-b-nichols.htm

No 2019-079, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Banks, life insurers, and commercial mortgage-backed securities (CMBS) lenders originate the vast majority of U.S. commercial real estate (CRE) loans. While these lenders compete in the same market, they differ in how they are funded and regulated, and therefore specialize in loans with different characteristics. We harmonize loan-level data across the lenders and review how their CRE portfolios differ. We then exploit cross-sectional differences in loan portfolios to estimate a simple model of frictional substitution across lender types. The substitution patterns in the model match well the observed shift of borrowers away from CMBS when CMBS spreads rose in 2016.

Keywords: Commercial real estate; Life insurers; Segmentation (search for similar items in EconPapers)
JEL-codes: G21 G22 G23 R33 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2019-11-15
New Economics Papers: this item is included in nep-ban and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://www.federalreserve.gov/econres/feds/files/2019079pap.pdf (application/pdf)

Related works:
Journal Article: Intermediary Segmentation in the Commercial Real Estate Market (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2019-79

DOI: 10.17016/FEDS.2019.079

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