Recovering risk appetite and tightening spreads in the commercial real estate market mean active managers have to work a little harder, according to DoubleLine Capital LP.
The most “draconian” scenarios have been priced out of commercial mortgage-backed securities following the sudden unraveling of Silicon Valley Bank last March, according to DoubleLine portfolio manager Morris Chen. Just over a year later, capital markets are open and even borrowers in still-unpopular industries — such as the office space — have access to credit.