CER 0.00% 32.0¢ centro retail group

a ontrarians view on cmbs-opportunity to buy

  1. 4,905 Posts.
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    This may be like selling ice to the eskimos on this thread but I thought it of interest.

    Below is an extract from article

    ".commercial real estate debt is a disaster waiting to happen.

    Bloomberg recently reported, [Commercial mortgage-backed securities] loan defaults rose to record in third quarterThe loan delinquency rate for bank-issued commercial loans is the highest since the second quarter of 1994.

    Worst shape in 15 years? Sure.

    Disaster waiting to happen? Definitely.

    But with the Feds printing press running on high, the government pressuring banks to make loans and refinance mortgages (both residential and commercial mortgages), the commercial real estate can has been kicked pretty far down the road.
    In the meantime, the window of opportunity is wide open. Heres why.

    Connecting the Dots

    On the surface, commercial real estate and the debt tied to it are bad shape.

    Its no secret. Everyone knows it. But commercial real estate is so out of favor, priced for the worst, and at a point where the market would react positively to any good news. And it looks like there is some good news just around the corner...."

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