Allstate has been an active and respected investor in Commercial Mortgage Backed Securities (CMBS) since the early development of the market in the mid 1990’s. Allstate now invests in a wide variety of structured real estate transactions including CMBS, Real Estate CDOs, B-Notes, REIT Debt and High Yield Debt Funds. Our investment strategy seeks the best relative value across the spectrum of real estate fixed income investment alternatives. CMBS, structured products and debt funds have become an important part of meeting our capital client’s investment goals. Some important facts about our CMBS and structured products investment activities are:

• The portfolio has grown to over $8 billion
• During 2006, $2.5 billion of new investment commitments were made
• Transactions are sourced primarily through Investment Banks and Co-investment partners
• The risk profile of the portfolio spans the spectrum from AAA-rated securities to High Yield Mezzanine Debt Funds