CLO “machine” steamrolling traditional CRE players

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CLO “machine” steamrolling traditional CRE players

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Shoppers at Westfield Stratford City shopping centre in east London, Europe's largest urban shopping centre and gateway to the new Olympic Park, as it opened its doors to the public. | John Stillwell/PA Archive/PA Images

Sources speaking with GlobalCapital on Wednesday said that the growth of the commercial real estate CLO market is gnawing away at lenders’ ability to keep underwriting standards high and remain competitive, pushing out traditional sources of debt capital in favour of debt funds and other alternative providers.

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