Is your pension fund invested in CMBS?

Is your pension fund invested in CMBS?

by Ann Hambly

I got a call from my dad the other morning. He was panicked because his pension check, which always hits his bank account on a certain day each month, hadn’t been deposited yet this month.  He had placed a call to the pension company and was waiting to hear what happened.

The FIRST thought that entered my mind was “oh no, I bet his pension fund invested in CMBS”. Pension funds often invested in CMBS senior level bonds in the mid 2000s.  Some of them are being hit with losses today and more are coming in the future as the wave of over-leveraged maturities get worked through.

Luckily my dad’s pension check was simply a glitch in someone’s system.  Some people will not be so lucky!