Nov 30 2007
Commercial Real Estate Derivative Trouble
In the bond market, commercial property investors are about as creditworthy as U.S. homeowners with subprime mortgages. “Commercial real estate is a full-blown bubble that feels very much at a bursting point,” said Christian Stracke, an analyst in London at CreditSights Inc., a fixed-income research firm. “There’s a fairly toxic mix of factors at work.”
Tha’s from an article worth reading on Bloomberg.com. As our post earlier today indicated, the problem of inflationary induced dislocations is hardly confined. Entire economies bend to where the wealth is redirected. Commercial real estate will be yet another shoe to drop.
