In commercial real estate lending there is a source of funding called mezzanine finance which helps bridge the gap between normal bank finance and the full sale price.
Since the fall of the finance sector, mezzanine finance or second-in-line debt, has become harder to come by and has made property development a riskier proposition for banks.
As a result of the poor returns, investors have migrated up the risk curve, investing in everything from hybrids to mezzanine finance, seeking better returns.
