Real estate CDOs: Equity tranches could be next for CRE

The US commercial real estate CDO market is the one to watch in 2006 for volumes and new opportunities.

Commercial real estate CDOs are set to be one of the fastest-evolving asset classes in 2006, according to CDO strategists at Citigroup. In particular, CRE CDO equity could be released in select transactions by CDO managers to institutional accounts.

CRE CDOs have been around since 1999 but used to be static pools of CMBS and Reit debt. In the past two years, at the same time that CRE CDO structures have become actively managed, a new breed of CRE CDOs have emerged as underwriters.

Thanks for your interest in Euromoney!
To unlock this article: