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Public Debt

One of the early investors in the Commercial Mortgage-Backed Securities (CMBS) market, Principal Real Estate Investors has been applying our proprietary default model—which allows us to analyze a full distribution of potential bond returns, based on 2,000 different economic scenarios, including tail events—to every conduit issuance since 1999.

Today, we conduct independent research on more than 600 CMBS bonds per year—both seasoned and new issue pools. A dedicated team of investment professionals, who focus exclusively on CMBS, manages all of our strategies, which comprise $7 billion in assets.

Commercial Mortgage-Backed Securities
Our CMBS investment philosophy aims to offer you consistent outperformance. It's based on the belief that security selection combined with disciplined surveillance and monitoring is the key to providing better risk-adjusted returns.

We offer CMBS strategies including:

  • Opportunistic CMBS Yield: Uses active management, selective leverage, and security selection to provide opportunities that strive to generate both a high level of current yield and total return.
     
  • Actively Managed CMBS Yield: Focuses on generating a significant amount of current income while seeking to outperform the benchmark over a market cycle.
     
  • Actively Managed CMBS Total Return: Benchmark-driven strategy that looks to deliver alpha through a combination of security selection and tactical trading.
     
  • Specialty CMBS: Customized strategy that invests exclusively in CMBS interest-only securities.
     
  • Buy and Hold CMBS Yield: Relies on security selection and long-term credit surveillance to provide opportunities for attractive yield, with the goal of long-term asset-liability matching.

 

Focuses on generating a significant amount of current income while seeking to outperform the benchmark over a market cycle.

Focuses on generating a significant amount of current income while seeking to outperform the benchmark over a market cycle.

Related Information

Understanding the Basics
U.S. Commercial Mortgage-Backed Securities
Public Real Estate Debt Strategies