Shop Talk: A conversation with John Levy with Loretta Clodfelter
To start, can you briefly describe the Giliberto-Levy High Yield Real Estate Debt Index?
Can I back up just a minute? We should start with the G-L 1, which is our original institutional index, because it will give you an understanding of why we needed G-L 2. Back in the early 1990s, Michael Giliberto and I started talking about what was going on in the commercial mortgage business on the institutional side. At best, it was in its infancy, so we thought it might be interesting if we could do a mark-to-market index for commercial mortgages. We started this index, and at that point it was called the Solomon-Levy because Solomon Brothers was our partner and Michael worked there. It became the Giliberto-Levy Index, which it has remained. It is a fixed-rate, first-mortgage benchmark or index for institutional real estate. It has grown over the years; right now, the real estate behind the G-L 1 is close to a half a trillion US dollars. To put it in perspective that