Alternative investments

Colony has sold offices in Europe, industrial properties and grocery-anchored shopping centers in the U.S. In May, it announced plans to restructure seven portfolios of hotels with $3.5 billion of debt.

A large percentage of Institutional investors lack confidence in the U.S. government’s ability to contain and eradicate the coronavirus outbreak. But few have plans to pull capital out of specific geographic regions due to the pandemic.

A low-rate environment has allowed companies in need of financing to avoid defaults or bankruptcy, making it difficult for credit managers to profit. At the same time, the broader market has provided far better investor returns over the past year, at least before the past week.

Instead of marketing securities backed by commercial property mortgages, STORE Capital chooses the more esoteric option of securitizing the income from its triple-net leases – a similar strategy to REITS such Spirit Realty Capital and SCP Financial.

An opening day panel for ABS East focused on the growing number of choices investors have in asset classes and structural options.