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National  + Finance  |  September 24, 2019
Dennis Kaiser
By: Dennis Kaiser

RCA: Debt Fund Surge Isn’t 2008 All Over Again

The latest research by Real Capital Analytics (RCA) reveals a competitive U.S. commercial real estate mortgage market. The debt fund segment of the market has continued to increase its market share, edging ahead of the life insurance companies for the first half of 2019.

The fear for some, points out RCA’s CRE economist Jim Costello, is that debt funds are going to load up the financial system with risks similar to what the CMBS originators did in 2003 to 2007. Costello notes, “The debt funds are not taking on the same sort of risks of the CMBS originators in the last cycle: these groups are taking on new types of risks. Importantly, these debt funds have skin in the game that the CMBS market did not in the last cycle.”

RCA reports life insurance companies hold 10% share of lending for core investment strategies, while debt funds hold a 9% share. However, debt funds captured more market share than insurance company lenders in the first half of 2019 in the riskier investment styles. Still, Costello says the debt markets remain intensely competitive with most categories of lenders capturing at least a 10% share of lending activity.

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.
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