When an asset manager allocates capital to Commercial Mortgage-Backed Securities (CMBS) or Commercial Real Estate Collateralized Loan Obligations (CRE CLOs), it’s helpful to understand why those decisions are made and how they influence overall portfolio construction.
In a real estate credit market shaped by interest rate volatility, evolving commercial property dynamics, and increasing credit dispersion, insight into the mechanics, risks, incentives, and expected performance behaviors of these instruments is pivotal.