Todd Sinai - Faculty Research in Knowledge@Wharton

Collateralized Damage: Commercial Mortgage Securities Are at a Standstill

Wed, 23 Jul 2008 14:16:26 EST

Media outlets and regulators have scrutinized the securitization of risky residential mortgages for their role in the global credit crunch. Not as much attention has been paid to their less-risky cousin, the commercial mortgage-backed securities (CMBS) market, which has been tarnished by problems on the residential side. Despite their superior fundamentals, says one Wharton professor, the CMBS market is "pretty much gone." The question now: Can it come back?

Credit Crisis Interview: Todd Sinai on Home Values

Fri, 20 Jun 2008 12:29:21 EST

Don't think of your house as an investment comparable to savings or a stock portfolio, says Wharton finance professor Todd Sinai. He is one of seven Wharton professors interviewed by Knowledge@Wharton for this special report on the credit crisis.

Subprime Crisis: Could New Rules Avert Another Credit Crisis? Perhaps, but Be Wary

Fri, 20 Jun 2008 12:30:17 EST

An unusual alignment of economic conditions -- and some very careless and risky bets -- triggered the meltdown. Should regulators step in to prevent a repeat? Should the government rescue the wounded? Experts say some new rules may be in order, but the details will be important. A concern: Bailouts may encourage risky behavior.

Mortgage Crisis Bailout: Relief for Some, Risk for Others

Wed, 05 Mar 2008 19:03:39 EST

Does the mortgage crisis demand a government bailout? A year ago, most experts thought not. Sad as the situation was for some homeowners, many felt the problem would be confined to those who had gambled on risky loans with eyes open. But things have changed. The mortgage crisis is behind a nationwide drop in home values that is impeding all types of lending. More and more experts now say some sort of government response is necessary to avert a prolonged recession. But what kind of bailout is affordable, and fair?

The Subprime Blame Game: Where Were the Realtors?

Wed, 17 Oct 2007 15:24:43 EST

It is a scene millions of Americans have been in -- sitting next to a real estate agent at closing to sign the papers for a new home. Often, the buyer has spent months with the agent. And to hear agents tell it, they are indispensable guides through the hazardous home-buying terrain. How is it, then, that millions of borrowers took on toxic subprime mortgages that could cost them their homes? Why did their agents not warn them off? While much criticism has been leveled at subprime lenders and mortgage brokers, some experts say that real estate agents have managed to escape their share of blame for the subprime mess.

Home Truths about the Housing Market

Wed, 05 Sep 2007 15:55:12 EST

The sub-prime mortgage crisis and the credit crunch that has followed in its aftermath are taking their toll on the housing market. On August 28, the S&P Case-Shiller U.S. National Home Price Index showed that home prices fell 3.2% in the second quarter. According to the National Association of Realtors, the inventory of unsold homes is at a record high. As sales have fallen, many home builders have seen their stock prices drop by more than 60% during the past year. How serious is this situation? Is there light at the end of the tunnel? Joseph Gyourko, director of Wharton's Samuel Zell and Robert Lurie Real Estate Center, and Todd Sinai, a professor of real estate, spoke to Knowledge@Wharton about these questions and more.

Feel Free to Move About the Airport: Turbulence Continues to Roil the Airline Industry

Wed, 25 Jul 2007 14:40:29 EST

Wharton professor Serguei Netessine, who recently had to spend the night in an airport hotel after being kicked off an overbooked evening flight, is one of thousands of airline passengers this summer who have been stranded on runways or sleeping in airports. While airline service is no longer the white-glove experience it once was, it has recently gone beyond bad food and snappish flight attendants. "Previously, airlines worried about dissatisfied customers. Now I don't think they worry about it because the customer service at all airlines is so horrible," says Netessine. Knowledge@Wharton looks at the current state of the airline industry.

You've Worked Hard, Saved and Just Retired: How Do You Manage Your Finances Now?

Wed, 13 Jun 2007 14:33:58 EST

As baby boomers retire and start spending their nest eggs, they will need new financial products to make their money last, according to speakers at a recent Wharton Impact Conference titled, "Managing Retirement Payouts: Positioning, Investing and Spending Assets." The conference explored emerging patterns in spending during retirement and debated new ideas to help retirees manage their finances after leaving the workforce.

Subprime Meltdown: Who's to Blame and How Should We Fix It?

Wed, 21 Mar 2007 16:34:51 EST

Troubles in the subprime mortgage industry seem to be spreading. The stock market is in turmoil. Alan Greenspan and others say the economy is being hurt. Consumer groups predict that up to two million Americans will lose their homes. Should the government do something? A growing list of people say it should, from Democratic senators Christopher Dodd and Hillary Clinton to a string of advocates for the poor. But Wharton faculty, including those who have studied the mortgage market and past government bailouts, aren't convinced.

Protecting the Value of Real Estate-Rich Portfolios

Wed, 15 Mar 2006 08:41:13 EST

Perhaps more so now than in the recent past, the fate of the U.S. real estate market hinges on the behavior of interest rates. Meanwhile, the trend toward legally enforceable titles has only just begun in many emerging markets, making them an unsure bet for investors. Given these variables -- which are difficult to predict and represent significant risk -- many real estate entrepreneurs are looking for ways to protect their portfolios. While predicting the movement of interest rates is notoriously difficult, investors in real estate would do well to understand the market forces at work in the sector. In this special report, experts from The Citigroup Private Bank and faculty from Wharton weigh in on the direction the real estate market is headed -- in both the U.S. and abroad -- and offer insights on ways investors can reduce the risk exposure of real estate-heavy portfolios.

Around the World on $48 (or So): How High Can Discount Airlines Fly?

Wed, 05 Oct 2005 16:04:41 EST

As two more major U.S. airlines, Delta and Northwest, file for bankruptcy protection, it's the discount carriers that appear to be winning the battle for America's skies. But it's not only in the U.S. that discounters are giving the more established carriers a run for their money. Discounters are taking off in Mexico, India, China, Europe and points in between. What kind of competition do these discounters face, from the majors and from each other? And what obstacles, especially in countries like China, are governments and regulators putting in their way?

Picking Up the Pieces from Katrina: What Lies Ahead

Mon, 21 Nov 2005 14:59:00 EST

When Hurricane Andrew struck south Florida in 1992, it caused what was then the largest natural disaster in American history, with more than $30 billion worth of damage. The economic fallout from Hurricane Katrina -- which last week ravaged New Orleans, La., and the Gulf coast -- looks to be much larger; indeed, some estimates put the damages/losses as high as $200 billion. Still uncalculated is Katrina's effect on the oil and gas industry, insurers, real estate, tourism and the financial markets, not to mention the future of hundreds of thousands of people displaced by the storm. Wharton professors assess the impact of what is clearly the costliest natural disaster ever to strike the U.S.

Fare Wars: The 'Friendly Skies' Are More Cutthroat Than Ever

Wed, 16 Jun 2004 15:47:10 EST

The always-cyclical airline industry is passing through a particularly rocky time. Established carriers – hit hard by recession, terrorism, SARS, war and now skyrocketing fuel costs – face tough competition from a new generation of low-cost airlines whose business model doesn’t rely on the hub-and-spoke system and whose service has earned them accolades the big carriers can only dream about. But even the low-cost upstarts face an uncertain future as they expand into larger cities. Wharton faculty and other experts consider the airline industry’s future flight path.

It�s Boom Time in the Housing Market, But for How Long?

Wed, 03 Jul 2002 00:00:00 EST

The residential real estate market in many U.S. cities shows no signs of slowing down, as eager home buyers continue to drive prices ever higher. Is this too good to be true? Are home prices a bubble that is soon to burst? Real estate experts at Wharton and in the private sector offer their predictions.

Flight Delayed Again? The Hub�s the Rub

Wed, 24 Apr 2002 00:00:00 EST

Anyone who has ever spent hour after aimless hour in an airport lounge waiting for a flight to be announced knows how frustrating airline delays can be. Even after the drop-off in air traffic following the September 11 terrorist attacks, delays persist. This dark cloud does have a silver lining, though, according to research by Christopher Mayer and Todd Sinai, professors in Wharton�s real estate department.

Real Estate Developers Can Expect Relocation, not Dislocation, from the Internet

Thu, 20 Jan 2000 16:54:24 EST

There�s no question that e-commerce has changed the demand for real estate. Consider Amazon.com which has no presence in malls or shopping centers but last year searched for one million square feet of warehouse space in New Jersey alone. It�s just one example of the new opportunities that the Internet can offer real estate developers who are logged into the e-commerce landscape. A recent Wharton Real Estate Center membership meeting discussed the synergies between real estate and the Internet.

Finding the REIT Value

Mon, 24 May 1999 16:56:34 EST

During the past few years, several real estate firms have reorganized themselves as real estate investment trusts, or REITs, to tap Wall Street for capital. But what is the present and future value of the REIT as a real estate investment vehicle? Joseph Gyourko and Todd Sinai of Wharton's Zell-Lurie Real Estate Center investigate that issue in a new paper.