“Wide bid-ask spread points to lower values” going forward. It just started.
Its unsecured bonds crashed 53% since Feb 14. It has been living off its real estate portfolio of “owned boxes” for years by selling them.
CMBS get to eat it all: Amid overvalued vacant collateral, there is a new thingy: Tenants delaying rent payments and landlords asking for forbearance.
“Some forced selling is highly likely.”
But those paper gains were fun while they lasted.
And construction companies “aren’t expecting a swift recovery.”
Never before have so many property funds shut the doors on so many property investors.
Sales at luxury goods stores, once the largest category, collapsed by 86% since their peak in 2013-2014.
Neither the Fed nor the Treasury can bail out brick-and-mortar retailers.
In good Financial Crisis manner, stuff blows up despite the Fed’s effort to stem the chaos. Now hoping for taxpayer bailouts.