An alternative to fixed-rate vehicles.

An outsized market that may over the risk-adjusted income you need.

Why commercial real estate (CRE) debt?

CRE debt offers an alternative source of income and diversification at a time when both are hard to find.

Arrows circling a dollar sign

Need for cash flow

Historically low fixed income yields have reduced income levels on bonds and increased downside risk.

Commercial real estate debt offers high quarterly cash flows with historically low volatility* relative to traditional fixed-income.

Magnifying glass over paper

Need for transparency

Proliferation of "alternative fixed income" has pushed investors into risky and opaque investment structures.

Commercial real estate debt is transparent, backed by hard assets with reasonable loan-to-value ratios.**

The Need for Diversification

Need for diversification

Excess liquidity around the globe has increased correlation across asset classes limiting the ability to diversify portfolio risk.

Commercial real estate debt has exhibited low correlation to other asset classes over time.

Correlation of CRE Debt to Major Asset Classes (2011-2019)1

U.S. STOCKS
LOANS
HIGH YIELD BONDS
EQUIT REITs
GOVERNMENT BONDS
CORPORATE BONDS
U.S. AGG BOND

*Standard deviation calculated from Bloomberg REIT and High Yield indices.
**Industry standard for “reasonable loan-to-value” is 80% or lower – source: Investopedia.com