Business Lines
Real Estate Securities
We invest in, create and manage portfolios of primarily investment grade commercial real estate debt securities, which we finance by issuing CDOs. These securities include CMBS, fixed income securities issued by REITs, credit-rated tenant loans, and CDOs backed primarily by real estate securities. Most of our securities investments have explicit ratings assigned by at least one of the three leading nationally-recognized statistical rating agencies (Moody’s Investors Service, Standard & Poor’s and Fitch Ratings, generally referred to as “rating agencies”) and generally are not insured or otherwise guaranteed. In addition to these securities, our investment grade CDOs may also include bank loans to REITs and real estate operating companies, and real estate whole loans or subordinate debt investments such as B Notes and mezzanine loans. By financing these securities with long-term debt through the issuance of CDOs, we seek to generate attractive risk-adjusted equity returns and to match fund the term of our investments.