Question

As a result of the seizing up of the capital markets in 2008, and the shutting down of the CMBS market specifically, life insurance companies, the traditional providers of long-term fixed rate debt to commercial real estate, increased their volume of lending such that they have completely filled the vacuum left by the severe reduction of CMBS origination.
True or false?

Answer 1

Answer:

The statement given is TRUE:

Explanation: Most of CBMS left in 2008, there was vacuum that was left. Banks just decided to clean up their balance sheets, and did not participate. The life insurance companies took advantage of this period and increased their origination and thus increased the lending to this sector where there was a huge vacuum.