After months of silence, a couple of critical developments from the beleaguered commercial real estate sector show up all at once. For the first time since the Global not-Financial Crisis, a senior tranche of a CLO took losses - a lot of losses - while redemptions threaten to force liquidations at one of the spaces more important CRE funds. Not good first signs for the bubble unwind.
Eurodollar University's Money & Macro Analysis
Bloomberg A Really Bad Sign for Commercial Real Estate
https://www.bloomberg.com/news/newsletters/2024-05-23/bloomberg-evening-briefing-a-really-bad-sign-for-commercial-real-estate
Bloomberg Starwood’s $10 Billion REIT Turns to Survival Mode as Real Estate Pain Lingers
https://www.bloomberg.com/news/articles/2024-05-23/starwood-reit-sets-drastic-redemption-limits-on-liquidity-crunch
Bloomberg Lenders Race to Buy Back Delinquent Multifamily Mortgage Loans
https://www.bloomberg.com/news/articles/2024-05-01/jpmorgan-says-commercial-real-estate-clo-loan-buyouts-are-set-to-reach-a-record
Fitch Global Contagion Risk Growing from Rising CRE Losses, Led by Office
https://www.fitchratings.com/research/non-bank-financial-institutions/global-contagion-risk-growing-from-rising-cre-losses-led-by-office-02-04-2024
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Twitter: https://twitter.com/JeffSnider_EDU
What is Eurodollar University?
Jeff Snider will guide you through the realm of monetary science. Multiple episodes uploaded each week, discussing big news and key current events, the state of markets and what they are telling you, as well as historical summaries and deep background material so that you can understand what’s really going on in this eurodollar’s world.