Question

Future fundings of loans in CRE CLOs are used to add size to an existing CRE CLO

True

False

Future fundings of loans in CRE CLOs are used to replace loans that are paid off

True

False

Answer 1

Fundamentally, the CRE CLO is a device that provides a match-term. Given the size of the conduit market these days, together with the other to up purchase future funding dollars from the sponsor as loans are funded be used to purchase entirely new assets that meet a robust set of eligibility criteria.

1)Future fundings of loans in CRE CLOs are used to add size to an existing CRE CLO

Answer-True

2)Future fundings of loans in CRE CLOs are used to replace loans that are paid off

Answer-True