Experienced management team Ongoing business support from its joint venture owners Limited scale and concentration in commercial real estate Exposed to volatility in the commercial mortgage-backed securities market Dependence on repurchase agreement funding The stable outlook on LoanCore Capital Markets LLC (LCM) reflects S&P Global Ratings' expectation that the company may face headwinds originating commercial real estate (CRE) mortgages and from commercial mortgage-backed securities (CMBS) market volatility but will remain profitable. We expect the portfolio of floating-rate mortgages on transitional CRE properties to continue to run off, which will reduce risk but also increase reliance on gains on sale of loans originated for CMBS. We expect leverage to fluctuate around the timing of originations and securitizations, and to trend between
