Now is the time to embrace the horror of the coming real estate price collapse in the commercial property sector. It seems like the media is starting to catch on. A lead article today read:
"US commercial property sales down in October"
Here is a short excerpt:U.S. office building sales fell 70 percent in October from a year earlier, yet another sign the credit crunch that began in the U.S. housing market has spread to the commercial real estate market, Real Capital Analytics said on Tuesday.You can read the whole article here: Commercial Property Sales October
I am embracing the horror by purchasing long term puts in SPG, DDR, and LEN.
I really like the SPG puts because the stock still has huge potential for downside trading at close to $90/share.
It should also be noted that commercial real estate bond spreads are widening even further.
Here are charts of the worst rated bond BB and the highest rated AAA bond in order to show that the garbage has been spread across all ratings.
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