New York, NY (PRWEB) October 30, 2013
$20 billion New York Based Cerberus Capital Management has become the latest giant to follow Apollo Financial Group’s lead into debt investing.
Wall Street based Apollo Financial Group has been a trendsetting force in mortgage markets with the firm’s senior partners touring to advise and educate on the ins and outs of due diligence of investing in mortgage notes. Now Cerberus Capital joins the Fed in getting in on the trend according to a Bloomberg News report on October 28th.
In June 2013 the Fed’s chairman, Ben Bernanke announced the abandonment of planning to sell its $1.4 trillion mortgage debt holdings. Now it appears Cerberus wants in on the action which Credit Suisse Group AG estimates include a doubling in the issuance of CMBS by the end of 2013 to $70 billion.
However, Apollo Financial Group continues to be distinguished in its approach to debt investing by two main factors.
The first is Apollo’s dedication to focusing on acquiring and curing non-performing bank notes. Entering the third quarter of 2013 U.S. banks still held some $210 billion in defaulting residential mortgage loans. According to the latest data being released by U.S. banks in October 2013 via Distressed Pro these institutions are continuing to see a large surge in new and re-defaults.
Apollo Financial Group helps banks and homeowners by buying these notes and restructuring the debt to bring borrowers up to date and enable them to stay in their homes. The distressed debt investment firm’s CEO Dean Anastos calls this the best possible “win-win situation for all parties”.
Apollo also offers funding for others interested in investing in non-performing notes secured by commercial property. This hard money lending program has been enabling others to copy Apollo Financial Group’s success; acquire notes from banks themselves and enjoy the rewards of having a first hand, positive impact on helping homeowners while realizing attractive returns.
However, perhaps even more significantly considering recent weak employment and growth statistics, Apollo is also offering a short term funding program for helping to inject the economy with fresh capital and provide investors critical first round financing for new projects that will push job and economic growth.