Morris Chen on CRE Dispersion and Data Center Restraint | Bloomberg TV

DoubleLine Portfolio Manager Morris Chen joins Bloomberg’s ETF IQ to discuss his approach to commercial real estate (CRE) credit in a bifurcated market. With the CRE recovery uneven across property types and geographies, Mr. Morris emphasizes that selectivity is everything, with careful bottom-up credit analysis essential to identifying which loans will pay off on time at maturity versus those at risk of extension or impairment. On data centers, he maintains his skeptical stance from early 2025, arguing that when spreads on data center commercial mortgage-backed securities are comparable to more traditional property types, there is little reason to take on the additional uncertainty. Mr. Morris sees data center exposure as better suited for the equity side of the capital structure and notes that with a full menu of brick-and-mortar lending opportunities available, DoubleLine remains on the sidelines in that space for now – though a meaningful spread reset could change the calculus.