Commercial Real Estate Finance

Posts Tagged ‘non-bank lender’

You Snooze, You Lose

If the corporate bond market is any indication of what is to come for real estate debt, it’s clear that non-bank lenders will make an attractive risk adjusted yield this cycle.  The window for putting that money out, however, could be short-lived.  Many in the corporate bond market feel that both extremely high yield and extremely good credit bonds are overpriced.  Since the end of 2008, corporate bonds at both ends of the credit rating spectrum have made a huge rally.  It’s the better quality credit junk bonds (the bonds in the middle of the credit spectrum) that look attractive still.  These bonds still have a decent yield for their default risk.

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