Wall Street’s CRE CLO Machine Is Wiping Out Apartment Investors (1)

Lynn Nathe was growing tired of the meager gains from her family’s retirement account. In late 2021, she invested $200,000 with a company that was making 30% returns by buying the hottest ticket in global real estate: US apartments.

Now, she says, most of that money is gone.

For Nathe, a business school graduate who invested earnings from her husband’s dentistry practice in Yakima, Washington, the loss is a personal calamity. Yet the story of her ill-timed bet — and the collision of social-media fueled investing, Wall Street’s securitization machine and sharply higher interest rates — also shows how FOMO and ...