Commercial Property Executive: The Rising Prominence of CRE CLOs
Joseph Iacono, CEO of Crescit Capital Strategies, was recently interviewed by Commercial Property Executive with other commercial real estate finance and investment experts on CRE CLOs. Last year, CLO volume nearly doubled. With deal sizes steadily increasing, investors are seeing this as an excellent opportunity to break into the debt market.
“From an investor perspective, it looks like a good value play as well as being short in duration,” Iacono added. That quality is particularly attractive in a rising interest-rate environment. Floating-rate terms take away rate risk, and the replacement period is relative short. “Because bonds are floating-rate, you don’t have rate risk and your expected repayment is relatively short. It’s been the driver of demand.”
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