Real Point, the commercial real estate analyst, has downgraded several hundred CMBS structures (commercial mortgage backed securities). Even better: they provided us with a comprehensive delinquency report for April. Most notable is the explosion in 90+ day delinquencies for March relative to April. Detoriation is accelerating in all categories.
This is in sharp contrast with the upbeat report REIT analysts of Merrill and BoA are producing just to facilitate placements of these outlets, the last couple of weeks.
I suggest that the steep rally of the last weeks was engineered by the Powers-That-Be in order to give way to a round of capital increases. That seems to be over now.
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This is in sharp contrast with the upbeat report REIT analysts of Merrill and BoA are producing just to facilitate placements of these outlets, the last couple of weeks.
I suggest that the steep rally of the last weeks was engineered by the Powers-That-Be in order to give way to a round of capital increases. That seems to be over now.
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