Corporate securitization: Back to the future

Operating company securitizations had to take a back seat to real estate as UK corporates rode the real estate boom in recent years. But they could now be set for a revival. Louise Bowman reports.

This article will appear in the March issue of Euromoney magazine. SECURITIZATION OF THEIR property portfolios has been a no-brainer for corporates in recent years. From supermarkets to pubs, company treasurers swiftly realized that the leverage they could achieve by monetizing their real estate was far higher than anything on offer elsewhere. The corporate securitization market therefore morphed into a hybrid CMBS market, with tenant quality and operating cashflows taking a back seat to ballooning property values.

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