According to Fortune, there are some investors that may have exposure to WeWork’s declining fortunes without realizing it: buyers of the mortgage-backed bonds called commercial mortgage-backed securities, or CMBSs.
“The greatest danger comes where the pool of mortgages is between $300 million and $600 million and a building that might have trouble collecting lease payments represents at least 5% of the total,” says Paul Monsen, VP at George Smith Partners. “That can have massive impact on the entire bond. I would be a lot less concerned about the ones in the upper tiers, $750 million or above.”
Read the full article: Another Wrinkle Emerges in the WeWork Saga (Fortune)
