Commercial Conduit Lenders

Conduit lenders are relatively new to the lending industry. These conglomerates attempt to pool assets from different types and classes and sell them to other lenders or investors, thus creating an intermediary to achieve massive funding based on the equity in an entire estate or large group of unique collateral.

Hedging in the secondary market helps to mitigate the risk assumed by these lenders, thus driving down the rates and making conduit lending a competitive alternative.