Taylor Speaks at MBA CREF Conference

At the Mortgage Bankers Association's annual Commercial Real Estate Finance conference in February, Michaell Taylor, a Boxwood principal, discussed recent advances in real estate risk models, and their utilization in various business applications. He argued that simulation and high-resolution modeling, combined with the inherent predictability of commercial real estate income streams, offer opportunities to increase efficiency in credit pricing, portfolio management, strategic planning and equity investment. To illustrate, Michaell discussed general results from a Boxwood client report that clearly demonstrate that up to 60% of portfolio-level risk can be eliminated simply through geographic diversification of an underlying commercial mortgage portfolio. Of particular interest to the assembled audience was the use of these models to manage risk and, more importantly, strategically share risk through various market and insurance mechanisms.