MBS default

[FD1000]

www.wsj.com/articles/office-landlord-defaults-are-escalating-as-lenders-brace-for-more-distress-894938c0

The number of big office landlords defaulting on their loans is on the rise, fresh evidence that more developers believe that remote and hybrid work habits have permanently impaired the office market.

The giant investment manager Brookfield Asset Management recently defaulted on a total of over $750 million in debt for a pair of 52-story towers in Los Angeles, according to a February securities filing. Real-estate firm RXR is in talks with creditors to restructure debt on 61 Broadway, a 34-story tower in Manhattan’s financial district, according to people familiar with the matter. Handing over the building to the lender is among the options under consideration, these people said.





www.bloomberg.com/news/articles/2023-03-01/work-from-home-high-interest-rates-put-92-billion-in-office-mortgages-at-risk#xj4y7vzkg
Two Office Landlords Defaulting May Be Just the Beginning

With at least $92 billion of office mortgages maturing this year, landlords are under increasing pressure.

[retiredat48]

links require subscriptions! Any way to show content? Do have the date of the articles?

Subject is of big interest.

TIA

R48

[FD1000]

Read it (link)

[retiredat48]

FD1000,...Got it...thanks.

To me, I am staying away from ALL REIT's.

Why fight against the tide of higher (way higher) interest rates, AND, for office reits, the trend for employees to get out of offices, for various reasons.

You could say,,,"everything at a price", and there will come a day reits seem of low valuation, and thus a buy...but count me out. More things to invest in than aging buildings with high interest rates.

R48

[FD1000]

Mar 31, 2023 14:33:48 GMT retiredat48 said:

FD1000 ,...Got it...thanks.

To me, I am staying away from ALL REIT's.

Why fight against the tide of higher (way higher) interest rates, AND, for office reits, the trend for employees to get out of offices, for various reasons.

You could say,,,"everything at a price", and there will come a day reits seem of low valuation, and thus a buy...but count me out. More things to invest in than aging buildings with high interest rates.

R48

As you know, I always kept it "simple" using 2-5 wide range funds, because I can find funds with tilting categories. I let the managers do their job, instead of owning 15+ funds.