Reported 5 months ago
Investors in top-rated bonds backed by commercial real estate debt are experiencing losses for the first time since the financial crisis. This was evidenced by the recent sale of a $308 million note backed by a mortgage on the 1740 Broadway building in Manhattan, resulting in top-ranked holders receiving less than three-quarters of their original investment back. The distress in the US commercial real estate market, particularly in bonds tied to single mortgages for older office buildings, is causing concerns about further losses. Market analysts predict that more loans may be sold at discounted values, indicating potential challenges in the commercial real estate sector.
Source: YAHOO