CNSREIT-AR-2024 Final - Flipbook - Page 61
Normally, CLOs and other CDOs are privately offered and sold, and thus are not registered under the securities laws.
As a result, certain investments in CDOs may be characterized as illiquid securities and volatility in CLO and CDO trading
markets may cause the value of these investments to decline. Moreover, if the underlying mortgage portfolio has been
overvalued by the originator, or if the values subsequently decline and, as a result, less collateral value is available to
satisfy interest and principal payments and any other fees in connection with the trust or other conduit arrangement for such
securities, we may incur significant losses. Also, with respect to the CLOs and CDOs in which we may invest, control over
the related underlying loans will be exercised through a special servicer or collateral manager designated by a
