Sept. 13 (Bloomberg) — Principal Financial Group Inc., the provider of life insurance and retirement products, is joining with Macquarie Group Ltd. in a venture that will make loans and package them into bonds.
Macquarie will provide funding while Des Moines, Iowa-based Principal's real estate arm will underwrite, close and service the loans, the companies said in a statement yesterday.
Australia's largest investment bank is pushing into a commercial mortgage-backed securities market that is rebounding after shutting in 2008. Wall Street banks this year have arranged about $54.6 billion of U.S. CMBS tied to everything from strip malls to skyscrapers after issuance doubled to $80 billion in 2013. Sydney-based Macquarie this year hired Tim Gallagher, who had led Morgan Stanley's commercial-real estate debt syndicate, to expand in the U.S.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
