The recession appears to be affecting all commercial real estate property sectors, and we believe job losses, reduced consumer spending, and the rapid decline in wealth have reduced demand for commercial real estate space. In our opinion, the confluence of these negative events combined in the first quarter of 2009 to drive vacancy rates higher for all of the major property types. Consequently, the performance of the collateral backing Standard&Poor's Ratings Services rated commercial mortgage-backed securities (CMBS) continues to show signs of stress, as property fundamentals weaken and credit conditions remain difficult. The CMBS delinquency rate is now only 11 basis points away from its peak of 1.96%, which was recorded in December 2003. Significant credit contraction has,
