European commercial real estate market is facing challenges as top-rated commercial mortgage bonds are set for their first losses since the credit crisis. Banks are dumping office loans, and borrowers are resorting to issuing debt into the Collateralised Loan Obligation (CLO) market, reminiscent of the 2008 financial crisis.
Commercial real estate crash now bleeding into bondholders. Next step from losses on the properties themselves. European markets donβt appear to have the backups like deep CLO demand that we see in America. π π https://t.co/KoIvPvPNAy
Top-Rated European Commercial Mortgage Bonds Set For First Losses Since Credit Crisis - FT https://t.co/St0dvFJ0z9
Top-rated European commercial mortgage bonds set for first losses since credit crisis https://t.co/LXHke6NSx0
A tale of two headlines. It looks to me like banks are dumping real estate loans and the borrowers are engaged in extend and pretend by issuing debt into the Collateralised Loan Obligation (CLO) market. CLOs are similar to the structured MBS products that blew up in 2008. π§¨π https://t.co/S1c99vx6cE
Commercial #RealEstate. Banks dumping in dribbles office loans https://t.co/Z8hRjPOY1V