THE CTL MARKET IS BACK.
- Resource Type
- Article
- Authors
- Napoli, Michelle
- Source
- Real Estate Forum; Oct2009, Vol. 64 Issue 7, p37-41, 5p, 2 Black and White Photographs
- Subject
- Language
- ISSN
- 00340707
The article discusses the concept of the credit lease tenant (CTL) financing as a viable option to the commercial mortgage backed securities (CMBS) model in real estate project financing. It suggests that CTL is especially useful when a prospective tenant for a building project has an investment-grade investment credit rating now that CMBS is no longer being used. One factor for the increasing use of CTL is the rapid recovery of the bond market for corporate credit since CTL will only work if there are buyers for bonds to finance a project.