JUST IN:
For the 1st time since the 2008 Financial Crisis a top-rated commercial mortgage-backed bond has experienced a loss.
Investors of the AAA-rated portion of a $308 million Commercial Mortgage-Backed Security (CMBS) on the 1740 Broadway building in midtown Manhattan got hit with a $40 million loss, or 26%.
The other 5 groups of lower-rated portions of the CMBS were completely wiped out and lost $150.5 million.
Meanwhile, there is ~$700 billion backed by the US government CMBS and $3 trillion of commercial mortgages on US bank balance sheets.
