In a webcast presented by Portfolio Manager Morris Chen for the DoubleLine Commercial Real Estate ETF (ticker: DCRE), filmed on February 11, 2025, Chen shares insights on the current state of the commercial real estate debt market, investment strategies, and the benefits of including commercial mortgage-backed securities (CMBS) in investment portfolios. He highlights the normalization of the commercial real estate market, the attractive valuations of CMBS, and the importance of active management. Chen also discusses the historical performance of CMBS, the impact of economic factors, and strategies for managing CMBS portfolios, concluding with final thoughts on market opportunities.
00:00 - Introduction Morris Chen introduces the DoubleLine Commercial Real Estate ETF (DCRE) and sets the stage for the discussion.
00:07 - Overview of the Commercial Real Estate Debt Market Chen provides an overview of the $4.6 trillion commercial real estate debt market, highlighting the role of CMBS.
00:37 - Current Market Conditions Discussion on the recent changes in mortgage rates, debt availability, and the normalization of the commercial real estate market.
03:11 - Transaction Activity and Lending Standards Analysis of transaction activity and easing lending standards in the commercial real estate market.
05:09 - Valuation Trends Chen discusses the peak-to-trough drawdown in property values across different sectors, including apartments, retail, industrial, and office.
06:57 - Opportunities in Commercial Real Estate Debt Chen emphasizes the attractive valuations and opportunities in the commercial real estate debt market.
07:03 - CMBS Market Overview Overview of the CMBS market, including issuance volumes and the normalization of the market.
08:40 - Spread Analysis In-depth analysis of CMBS spreads and the relative value compared to investment-grade corporate bonds.
10:14 - Investment Strategies Chen explains the strategies used to manage the DCRE ETF, including a focus on short-duration, high-quality securities.
12:24 - Portfolio Composition Details on the current portfolio composition of the DCRE ETF, highlighting its high-quality, diversified nature.
14:08 - Risk Management Discussion on the risk management strategies employed in the DCRE ETF, including the use of fixed-rate and floating-rate bonds.
17:00 - Performance and Yield Chen provides an overview of the fund's performance, yield to maturity, and SEC yield.
18:08 - Comparative Analysis Comparison of the DCRE ETF's performance and yield to other indices and fixed income markets.
19:17 - Active Management Benefits Chen highlights the benefits of active management in the CMBS market, including the ability to select specific securities and manage duration.
21:02 - Portfolio Construction Details on the portfolio construction process, including the focus on high-quality, low-leverage securities.
22:37 - Conclusion and Final Thoughts Chen wraps up the webcast with final thoughts on the opportunities in the commercial real estate debt market and the potential for outperformance.
Summary Prospectus: https://pex.broadridge.com/summary.asp?doctype=spro&cid=dbline&fid=25861R303
DoubleLine ETFs are distributed by Foreside Fund Services, LLC.
Mr. Chen joined DoubleLine at its inception in 2009. He is a Portfolio Manager leading the CMBS/CRE Debt Investment team and CRE New Investment Review Group, and is responsible for the oversight and management of all CRE Debt related investments at DoubleLine. Mr. Chen is a permanent member of the Fixed Income Asset Allocation and Structured Products Committees providing valued insight into the CMBS sector. He is also an active participant and speaker at CREFC events. Prior to DoubleLine, Mr. Chen was a Vice President at TCW where he was responsible for CMBS credit analysis and trading from 2004-2009. He holds a BS in Business Administration with concentrations in Business Development and Finance from the University of California, Riverside.
