Nine years before WWI broke out, Field Marshal Alfred von Schlieffen developed the plan to invade France with a six week war. The movements were planned to the day and allowed for various contingencies but one, the unknown. The war lasted four years
Over a century later, CMBS still hasn’t applied this lesson. Trusts are rigid and asset managers are not empowered to be creative and therefore follow a strict game plan.
Amongst other things, this contributes to outsized unnecessary losses to bondholders and Borrowers alike.
