Real Estate Public Debt

1.5 Credits · Level: Graduate, Undergraduate

The goal for this course is for you to learn the mechanics and concepts of pricing risk in traded real estate debt, with particular focus on commercial mortgage-backed securities (“CMBS”). This class is designed for use in either (or both) of two professional contexts: · Debt investment, in order to price risk “up and down the capital stack”, and across markets; and · Debt issuance, in order to understand the costs and tradeoffs of various capital market options. Homework and extended discussions will all be taken from actual loans and bonds, without reference to more traditional case method materials. The intent is to work with the actual documents and materials used by professional investors, which will generally be introduced one per class. To give students access to professional-level analytics, the class will lean heavily on the Trepp system (https://www.trepp.com/). Students will have access to the system for the duration of the class (including the final project).