A case study of South African commercial mortgage backed securitisation

• Main Author: Karoly, Viola
• Other Authors: Ghyoot, V.G. (Valmond George), 1951-
• Format: Others
• Language: en
• Published: 2009
• Subjects: Single borrower; Case study; Property loan stock company (PLS); South Africa; Securitisation; Commercial mortgage-backed securities (CMBS); Commercial mortgage-backed securitisation; Structured finance; Property finance; Debt securities; 332.6323; Securities > South Africa; Securities > South Africa > Case studies; Mortgage-backed securities > South Africa; Mortgage-backed securities > South Africa > Case studies
• Online Access: http://hdl.handle.net/10500/1665

Commercial mortgage-backed securitisation (CMBS) is an important development in the South African property finance field. This study explains the characteristics; structure and structuring; advantages, disadvantages and risks; and legal and regulatory aspects of CMBS. Four CMBS programmes have been launched in South Africa to date (August 2006) all of which have been originated by listed Property Loan Stock (PLS) companies. The unique features of the four programmes were examined and the impact on their originators and the listed property sector was analysed. The main participants in the South African CMBS industry were interviewed. CMBS has acted as a catalyst for greater competition between banks resulting in lower interest rates on bank debt and the creation of new property financing products. The introduction of CMBS has benefited not only the four originating PLS companies, but also had a positive impact on the entire listed property sector. === Business Management === M. Com. (Business Management)