Nitya Capital is reportedly looking to sell about 40% of its multifamily portfolio because rate hikes are making its floating-rate debt a lot more expense.
That’s why investors should be cautious of floating-rate commercial real-estate loans packaged into bond deals, according to credit researcher Lea Overby and her team at Barclays.
As an example, Overby on Thursday highlighted a report that Houston-based Nitya Capital has been looking to sell about 40% of its multifamily portfolio, because interest rate hikes by the Federal Reserve have made its floating-rate debt more expensive to manage, according to Real Estate Alert. The last decade has given rise to so-called “CRE CLOs,” a kind of fund where billions of dollars in floating-rate loans on commercial properties gets packaged into bond deals. They are a distant cousin of CDOs that made headlines in the wake of the 2007-2008 global financial crisis.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
ChatGPT-4 claims 40% better at producing factual responses | Digital TrendsOpenAI announced its latest iteration of ChatGPT with greater accuracy and creativity.
Les mer »
40% Higher Risk: New Study Finds Connection Between Discrimination and DementiaNew research from Wake Forest University School of Medicine suggests that experiencing discrimination throughout one's life is linked to a higher risk of dementia. The study was recently published in Alzheimer’s & Dementia, the journal of the Alzheimer’s Association. “We need a better unde
Les mer »
In unusual step, U2 reinterprets 40 of its best-known songsIn reimagining 40 of their best-known songs, U2 recognized that many fans would experience them through earphones connected to a device in their pockets — rather than being belted out onstage.
Les mer »
22-year-old Summit County man overdoses on drug up to 40 times stronger than fentanylThe Summit County Medical Examiner said Mateo’s death is the first he’s seen here from this drug, but there are reports of dozens of others across the country dying from it.
Les mer »