CMBS Expertise

  • Aqua Investment Management's competitive edge is the ability to identify CMBS opportunities and pitfalls through greater understanding of the CMBS market and through the performance of significantly more analysis than most market participants.
  • Aqua's philosophy when purchasing or monitoring CMBS requires an analysis and understanding of every single asset that makes up a CMBS issuance. Aqua employs diligent loan by loan management through our proprietary "drill-down" method of review including analysis of underlying asset financial statements, rent rolls, operating statements and relevant market data.
  • When evaluating a CMBS deal, Aqua gains access to all relevant data points for every asset underlying a deal. Aqua then evaluates each of these underlying assets based on location, age, property type, tenant base, past performance and several other variables gathered through further research. After this evaluation, Aqua determines a current market value and a projected cash flow for every asset making up a particular CMBS deal. These results are then used to determine if any assets in the CMBS pool have the possibility of defaulting during their life. Liquidation values are assigned to "at risk" assets and any potential losses are aggregated to determine which bond classes in the deal could be at risk of a loss.
  • Aqua has experience evaluating and managing all types of CMBS deals of varying sizes and structures.
  • Through Aqua's ongoing involvement in the CMBS space, we are intimately familiar with many of the troubled loans, borrowers and deals that exist in the market.
  • Aqua has a strong understanding and experience in the workout process for CMBS loans giving us insight into actions that Special Servicers and other parties may take.