Comparative Study of Risk Assessment, Management and Pricing of CMBS (Commercial Mortgage-Backed Securities) in Indian and other Asian Markets

Abstract

Recent global financial crisis brings slowdown in the global real estate markets and lack a/funding brought fRecent global financial crisis brings slowdown in the global real estate markets and lack a/funding brought fo,ward tough economic conditions before the major global players as well as Indian real estate developers. They were either postponing their projects or unnecessarily delaying them. It is very difficult to get finance for their projects. Indian developers can not solely depend on the finance through the banks and other financial institutions. To this extent, a thriving CMBS market in India would, in addition to augmenting the domestic investor base, a/low.foreign investors to invest in the Indian property boom, something they have been hither to unable to do on a large scale due to stringent Foreign Direct Investment (FD/) norms. Moreover, it will provide a more secure.form o.ffinancingfor developers in India. Through this research will assess the various risks which are associated with Commercial Mortgage backed securities (CMBS). A thorough study will be undertaken that how they (CMBS) were managed in the various Asian countries like China, Japan, Singapore, Korea, Taiwan, Hong-kong etc. How CMBS can provided an alternate source offinancing to the real estate developers and how the pricing of these securities were done. Comparative study with the various countries will help in highlighting the usefulness and way to manage this newform of financing.o,ward tough economic conditions before the major global players as well as Indian real estate developers. They were either postponing their projects or unnecessarily delaying them. It is very difficult to get finance for their projects.