Office space going vacant (leases are coming up slowly, and companies are thinking they don't need a

Mar 27, 2023
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Office space going vacant (leases are coming up slowly, and companies are thinking they don't need as much space now), and if there's losses, what do the owners (banks) do? They can't really hedge it. If you sell it, you realize the losses which itself becomes a problem and perpetuates the cycle. If they raise cash that destroys profitability in the longrun.

Rising re-financing issues. Will there be enough investors to buy packaged loans to keep this machine running.

Debt market. How open is it? Right now there's concern. We haven't had an investment grade-rated bond deal in a week, said Greg Zuckerman. Junk bond spreads are wider (not suggesting credit risk issues). But the interest rate risk could go to a credit rate risk, is a concern.

In 2008, analogous but different, it took about a year for some of the risks to move through the system.
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<div>Office space going vacant (leases are coming up slowly, and companies are thinking they don't need as much space now), and if there's losses, what do the owners (banks) do? They can't really hedge it. If you sell it, you realize the losses which itself becomes a problem and perpetuates the cycle. If they raise cash that destroys profitability in the longrun. <br></div><div><br></div><div>Rising re-financing issues. Will there be enough investors to buy packaged loans to keep this machine running.</div><div><br></div><div>Debt market. How open is it? Right now there's concern. We haven't had an investment grade-rated bond deal in a week, said Greg Zuckerman. Junk bond spreads are wider (not suggesting credit risk issues). But the interest rate risk could go to a credit rate risk, is a concern. <br></div><div><br></div><div>In 2008, analogous but different, it took about a year for some of the risks to move through the system. <br></div><div><br></div><div><br></div>
Office space going vacant (leases are coming up slowly, and companies are thinking they don't need as much space now), and if there's losses, what do the owners (banks) do? They can't really hedge it. If you sell it, you realize the losses which itself becomes a problem and perpetuates the cycle. If they raise cash that destroys profitability in the longrun.

Rising re-financing issues. Will there be enough investors to buy packaged loans to keep this machine running.

Debt market. How open is it? Right now there's concern. We haven't had an investment grade-rated bond deal in a week, said Greg Zuckerman. Junk bond spreads are wider (not suggesting credit risk issues). But the interest rate risk could go to a credit rate risk, is a concern.

In 2008, analogous but different, it took about a year for some of the risks to move through the system.

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