Investors in top-rated bonds backed by commercial real estate debt are experiencing losses for the first time since the 2008 financial crisis. The losses are particularly evident in a $308-million CMBS deal backed by a loan for 1740 Broadway in New York City, where buyers of the AAA tranche were repaid only 74% of their investment. Industry analysts warn that more pain may be on the horizon for the safest commercial mortgage-backed securities (CMBS). This development is seen as a sign that the commercial real estate market may be hitting rock bottom. Reporting by Carmen Arroyo and Natalie Wong.
For the first time since the financial crisis, investors in top-rated bonds backed by commercial real estate debt are getting hit with losses https://t.co/XeboE3zK96 via @markets
Commercial real estate distress is starting to appear in the highest-rated CRE debt. Buyers of the AAA tranche of this $308-million CMBS note on a Manhattan skyscraper were only paid back 74% of their investment. All the lower-tranche creditors got smoked, 100% loss. https://t.co/bnWKZ5wIe1
'For the first time since the financial crisis, investors in top-rated bonds backed by commercial real estate debt are getting hit with losses.' https://t.co/7VfVPsez5t
“These losses may be a sign that the commercial real estate market is starting to hit rock bottom.” For the first time since the 2008 financial crisis, investors in top-rated bonds backed by commercial property debt are getting hit with losses. https://t.co/tBAvEvG2hj
First loss on an AAA-rated slice of a CMBS deal since 2008 right here - backed by 1740 Broadway in NYC. https://t.co/sAJrrQmyKV by @ArroyoNieto & @natalexisw https://t.co/gucXVnkXQz
"Losses Pile Up in Top-Rated Bonds Backed by Commercial Real Estate Debt" https://t.co/H2eMCn3rWy via @markets
Losses Pile Up in Top-Rated Bonds Backed by Commercial Real Estate Debt https://t.co/pVbZFayKUG
Losses Pile Up in Top-Rated Bonds Backed by Commercial Real Estate Debt - BBG https://t.co/W7eMhfmE91
For the first time since the financial crisis, investors in top-rated bonds backed by commercial real estate debt are getting hit with losses https://t.co/nSEElMR9Y9
CMBS Buyers Suffer First Loss on AAA Debt Since Financial Crisis Top bonds backed by loan for 1740 Broadway in NYC repaid 74% Industry analysts warn of more pain to come in safest CMBS By Carmen Arroyo and Natalie Wong @natalexisw #CMBS #CMBX #CRE #AAAlosses https://t.co/o9OoCUTaGh
CMBS Buyers Suffer First Loss on AAA Debt Since Financial Crisis @business #CMBS @DiMartinoBooth ▪Top bonds backed by loan for 1740 Broadway in NYC repaid 74%. ▪Industry analysts warn of more pain to come in safest CMBS
I am fully convinced all the negative headlines about commercial real estate is what has caused some lenders to pull back. With that said, Debt Funds are aggressively lending and taking opportunities from traditional banks/credit unions.