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CBRE Debt Analytics – The Industry’s first outlook for Debt Returns

Debt Analytics

The Debt Analytics team provides a range of services – data, consultancy, forecasting – to assist clients’ strategic decision-making throughout the lending process. We work with all types of lenders – banks, insurers, debt funds, mezzanine – as well as third-party investors, asset allocators, consultants and Regulators. Our service draws on the unique advantages of the scale of CBRE’s business, combining a market leading Research capability, cutting-edge intelligence from our Capital Advisors team and an exhaustive interrogation of our unrivalled database of asset-level performance, which provides a unique understanding of the drivers of asset and loan performance.

For more on the latest market intelligence, news and commentary from the team, visit: valuedinsights.cbre.co.uk.

Shedding light in an otherwise opaque market

From a data perspective, the CRE debt market can, compared to other asset classes, be a challenging place in which to operate; historically, there has been very little transparency on deal terms, rates of return and experience of loss. While an opaque market offers certain advantages to well-informed players, it makes it difficult at times to perform exacting quantitative analysis of market opportunity to the degree that might ideally be desired. It is against this backdrop therefore that we at CBRE have developed a suite of CRE Debt Analytics intelligence tools to arm potential investors in CRE debt with as much information as possible at every stage of the investment process.


Our default and loss model

Underpinning this analysis is our proprietary default and loss model, which combines unique analysis of CBRE’s unrivalled database of asset-level performance with historic and forecast data on debt and real estate markets – sourced from our industry-leading Capital Advisers and Research teams – to deliver fully bespoke and cutting-edge analysis of the risk and return characteristics of whole markets or individual assets. This enables stakeholders at every stage of the investment process to critically assess their options in a way that has never been achievable before.


Our specialist services

Examples of specific services our team can provide include:

  • Historic debt returns series – customisable by market, property type, lending parameters.
  • “Making the case for CRE debt” analysis, for use in marketing, fund-raising, investment material.
  • Forecasts of future returns from CRE debt – fully customisable, enabling clients to derive forecasts of debt returns from their own forecasts of direct market performance.
  • Portfolio optimisation analysis, allowing strategic composition of lending portfolios to achieve specific risk/return requirements.
  • Risk-adjusted pricing of individual deals using proprietary default and loss model.
  • Analysis of market assumptions implicit in pricing.
  • Portfolio risk management through regular asset-level re-evaluation of risk-adjusted pricing.
    Loan rating and assessment of Regulatory capital.

Find out more

Get in touch for a private briefing, or to find out about our 'by invitation only' conferences.

Contacts

Dominic Smith

Head of Real Estate Debt Analytics
Valuation Advisory - Investment Valuation

Dominic Smith

T: +44 20 7182 2369
dominic.smith@cbre.com

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