Exploring the collaboration between sponsors and borrowers to maintain asset performance in Commercial Real Estate Collateralized Loan Obligations, focusing on proactive measures to prevent delinquencies and the intricacies of repurchasing impaired assets to safeguard investors.
After the 2008 financial crisis, investment managers came up with a new securitized product: the collateralized loan obligation, or CLO, for commercial real estate. It was designed to correct some of the risks that came with its predecessor, the collateralized debt obligation.
But what exactly is the CRE CLO and how does it work? Deconstruct enlisted attorney and CLO expert Stewart McQueen at Dechert to break down the product.