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22-04-2024, 07:29 AM
The recent ded official who go and say FED may have to raise rates some more I think many CFO/CEO scared until pee in their pants. Recently bankruptcies in Asutralia rose to highest level. Those who went to buy reits better pace yourself
With 40% gearing for reits, they are high debts with falling asset prices especially those with office buildings overseas.
Maybe things will improve or may be they will not but be mindful of the risks. With US debt ballooning to unprecedented territory and inflation still high anything happens, they may not be able to do much or react...
This reminds me of 2007 when everything still looks nice and stocks rose to multi yr high only to face fianncial crisis one yr later.
US commercial real estate some places fell by 60% in value. The debt in US is non recourse meaning owner can just hive building to bank and square off he debt. This will bankrupt some of the regional backs who focuse on commercial real estate financing
With 40% gearing for reits, they are high debts with falling asset prices especially those with office buildings overseas.
Maybe things will improve or may be they will not but be mindful of the risks. With US debt ballooning to unprecedented territory and inflation still high anything happens, they may not be able to do much or react...
This reminds me of 2007 when everything still looks nice and stocks rose to multi yr high only to face fianncial crisis one yr later.
US commercial real estate some places fell by 60% in value. The debt in US is non recourse meaning owner can just hive building to bank and square off he debt. This will bankrupt some of the regional backs who focuse on commercial real estate financing
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
