Mezz debt, once heralded, now seen as a curse in CRE

02/18/2009 | Wall Street Journal (free content), The

Mezzanine debt has fallen from favor as quickly as the real estate sector could contract. The financing vehicle was particularly popular among private-equity firms and hedge funds in the final years of the real estate boom. The debt fills the gap between the borrower's equity and the first mortgage and allowed firms to make between $50 billion and $75 billion, according to estimates.

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Wall Street Journal (free content), The

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