Loans Have Performed Well Across Market Cycles
Prior performance shows that loan losses historically have only spiked in major financial crises and loans have done well through regular up and down economic cycles.1
High Demand for CRE Credit – $2.1 Trillion of Mortgages Maturing Over the Next 5 Years
There is a growing need for debt capital in the $3.1 trillion U.S. CRE mortgage market as $2.1 trillion in mortgages mature by 2024.2
A Smaller CMBS Market is Creating Opportunity for Alternative Lenders
Commercial Mortgage-Backed Securities, or CMBS, are securities collateralized (bundled and sold as bonds) by loans secured by CRE property. Although the CMBS market is functioning, it is significantly downsized following the financial crisis due to capital requirements, new regulations regarding issuer reps, and risk retention rules that came into effect in 2016.
U.S. CMBS Issuance (As of January 2020)3
There is no guarantee that market conditions will continue to be favorable or that we will benefit from such conditions.1 Board of Governors of the Federal Reserve System: Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks. (http://www.federalreserve.gov/releases/chargeoff/chgallsa.htm). Federal Financial Institutions Examination Council (FFIEC) Consolidated Reports of Condition and Income(1991-2018: FFIEC 031 through 034; 2001-2018: FFIEC 031 & 041). There is no guarantee that market conditions will continue or be profitable. Data available upon request. 2 Trepp - Based on Federal Reserve Flow of Funds Data. September 2019. Data available upon request. Information is projected and actual results may vary. 3 Commercial Mortgage Alert. January 2020. Article available upon request. Past performance is not a guarantee of future results. This website is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the prospectus. This material must be read in conjunction with the prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. A copy of the prospectus must be made available to you in connection with any offering. No offering is made except by a prospectus filed with the Department of Law of the State of New York. Neither the Securities and Exchange Commission, the Attorney-General of the State of New York nor any other state securities regulator has approved or disapproved of the securities, determined if the prospectus is truthful or complete. Any representation to the contrary is a criminal offense.