TRUE FALSE As a result of the seizing up of the capital mar

(TRUE / FALSE) As a result of the seizing up of the capital markets in 2008, and the shutting down of the CMBS market specifically, life insurance companies, the traditional providers of long-term fixed rate debt to commercial real estate, increased their volume of lending such that they have completely filled the vacuum left by the severe reduction of CMBS origination.

Solution

The given statement is TRUE:

Explanation: In 2008, most of CBMS left and there was vacuum that was left. Banks also wanted to clean their balance sheets and did not participate. At this time, the life insurance companies took advantage and increase their origination and thereby increased lending to this sector where there was a huge vacuum.