Commercial mortgage-backed securities (CMBS) is a vast market where steady growth in issuance and inefficiencies create a broad spectrum of investment opportunities for a dedicated investment team that is highly skilled in property valuation, credit analysis, and bond trading.
Cerberus’ dedicated CMBS Investment platform is comprised of professionals with extensive backgrounds in commercial real estate, trading, and structuring. Our team incorporates a deep knowledge of CMBS loans and capital structures into an investment process that emphasizes bottom-up property due diligence and tailored exposure to individual loan outcomes.
Our Investment Approach
We are committed to a fundamentals-driven and research-intensive approach to identifying CMBS investments that can produce attractive, risk-adjusted returns under a variety of stress-tested scenarios.
We evaluate investment opportunities based on extensive credit underwriting, detailed loan-level research, and comprehensive analyses market factors, such as special servicers’ disposition and modification efforts, liquidation pipelines, and the activity of institutional buyers and sellers.
Cerberus targets investments where complexity in properties, loans, servicing behavior, and/or capital structure creates price differentiation. We believe our CMBS platform is well-positioned to capture a diverse set of investment opportunities that can arise from legacy CMBS loans coming due in the subsequent years.
The Cerberus CMBS Edge
Experienced, Tenured Team
Our cohesive CMBS investment team has complementary expertise in all aspects of CMBS investing, including portfolio management, sourcing, trading, hedging, structuring, modeling, and risk management. They have been investing together at Cerberus since 2008, and for years prior while working together on Wall Street.
Our proprietary technology incorporates rich data sets to support a comprehensive investment process, drawing on proprietary and third-party research on properties, loans, markets, and appraisals. Dynamic modeling supports our property analyses, scenario analyses, loan monitoring, relative value decision-making, and risk management.
Cerberus Real Estate
Cerberus’ Real Estate platform includes 93 dedicated professionals around the world. When appropriate, our CMBS investment team collaborates with our Real Estate team to share insights on properties, loans, markets, and other industry trends, as well as to source non-conventional deal flow from a vast network of senior industry relationships.
Cerberus’ broad investment and operating platforms generate a wealth of perspectives that benefit and promote more informed investment decisions about the CMBS market. Cross-platform synergies include enhanced insights on macroeconomics, consumer trends, corporate credit, and capital market dynamics.