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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (32907)	11/30/2008 11:47:09 PM
From: Spekulatius	Respond to of 78764

re Debt I think that if you compare yield on any corporate debt to treasuries, that you will find the spreads to be high. The problem is not specific to RE, it is a problem for all debt that has to be refinanced. here is a 11/20 news link: True the spreads have risen significantly. BBB debt trades at around 9-10%. However my point is that RE related debt goes beyond that. For example KIM & SPG cooperate debt trades at around 11-12% depsite being rated higher at A-. the values for commercial mortgage paper with 14-16% are just astronomical and exceed anything i have ever heard before. This means that the buyers (or sellers) of this paper are very concerned about the RE market. This is going to affect a lot of players in the RE market. REIT's are obvious but for example GE finance has 88B$ in assets in commercial RE for example per Q3 10Q. I am almost talking myself into a short here...