The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

CIBC Sets Aside $1B For Loan Purchases, Origination

CIBC World Markets wants to buy or originate as much as $1 billion in commercial real estate loans by year end. "We were always originating loans, and now there's better value in buying loans in the secondary market," said Michael Higgins, head of real estate finance. "It's the best place to put money to work," he said, adding that the bank will deploy capital based on opportunity.

With lending volume down, CIBC is setting its sights on discounted loan portfolios, senior notes and mezzanine notes behind first mortgages. "We'd like to buy loans where we think the borrower could be a potential future client," Higgins said. The bank is looking to buy loans at steep discounts.

CIBC, which has been active in the secondary market since early this year, has seen itself out-bid on some portfolios. "There is competition in the space from other funds," Higgins said. "But we like the space." More loans may hit the market in coming months as sellers shed exposure, he added.

To this end, the bank wants to hire two to three bankers who could buy loans and also provide advisory and loan restructuring services. Higgins believes strongly in the marketable skills of commercial real estate investment bankers and due diligence experts in today's market.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree