New York Mortgage Trust (NYMT), a real estate investment trust that securitizes prime residential mortgages, has invested $9 million in the Cratos CLO I, marking its first foray into alternative investments.

The CLO’s portfolio consists of $467 million in senior secured corporate loans across 75 different borrowers and includes companies in various industries, geographic locations and borrower classifications.

“This is the first transaction using our previously announced alternative investment strategy focused on opportunistic investments in alternative financial assets that we believe are likely to generate attractive risk-adjusted returns,” Steven Mumma, NYMT’s CEO, said in a statement.
NYMT’s investment in the CLO will be managed by Harvest Capital Strategies, the investment advisor to Hypotheca Capital.

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