CMBS holders are on the hook, not banks. Investors in hotel REITs have gotten totally crushed.
And it’s structural. Variable-rate CRE mortgages and much higher rates just speed up the process.
The driver: computer, electronic, and electrical manufacturing.
Most people in finance today cut their teeth in the era of Easy Money, when history books were thrown out the window. But that era is over.
Most people in finance today cut their teeth in the era of Easy Money, when history books were thrown out the window.
Another sign the economy is flying a cruising altitude and refuses to land, even with short-term interest rates over 5%.
The clueless WSJ reporter needs to be taken to the woodshed. That kind of BS article doesn’t belong in the WSJ.
But the dividends are so sweet – until they get cut or “suspended.”
And nearly 60% off the purchase price in 2005. Price discovery sets in. Deals are being made.
Whoever buys the defaulted loan gets the tower. So far, investors and specialized lenders have been on the hook, not commercial banks.