Real Estate Pain Is Showing Up in an Obscure Investment Product
An obscure investment product used to finance risky real estate projects is facing unprecedented stress as borrowers struggle to repay loans tied to commercial property ventures.
Latest Videos
The information you requested is not available at this time, please check back again soon.
An obscure investment product used to finance risky real estate projects is facing unprecedented stress as borrowers struggle to repay loans tied to commercial property ventures.
When Ken Griffin left Chicago, the billionaire listed several of his high-end properties in the Gold Coast, the city’s most exclusive neighborhood.
Vietnamese prosecutors sought the death penalty for real estate tycoon Truong My Lan, indicted in a $12 billion fraud case for her role in bribing government officials, violating bank lending rules and embezzling funds, VnExpress news website reported.
Bank of America Corp. is cutting some office space in its headquarters in Hong Kong’s Central district, according to people familiar with the matter, underscoring the headwinds for the city’s commercial landlords.
One word echoed across trading floors from Tokyo to Singapore as the Bank of Japan raised rates for the first time in 17 years — ‘finally’.
Jan 21, 2022
Bloomberg News
,(Bloomberg) -- China’s third largest developer by sales received its second credit downgrade in as many days, highlighting concerns over builders once perceived as safer bets.
Sunac China Holdings Ltd. was dropped a notch to BB- by S&P Global Ratings on Friday, following the same move by Fitch Ratings the previous day. Both credit assessors’ outlook is negative. They cited uncertainty about the developer’s 2022 liquidity, with S&P saying that though it believes Sunac can meet this year’s debt maturities, “the margin of error is eroding.”
Sunac declined to comment.
A prolonged liquidity crunch has left investors increasingly worried that even higher-rated and larger builders may suffer. A reported failed convertible bond deal by heavyweight Country Garden Holdings Co. last week sent higher-rated developers’ dollar bonds plunging to record lows, stirring worries that financing channels had become restrictive even for strong firms. Its notes climbed Friday amid broader gains after announcing a $500 million convertible-bond deal.
Chinese Builder Sunac Sees Financial Worries Rise to the Surface
Fitch said Thursday that Sunac’s access to debt capital markets is “largely closed.” The builder sold shares at a 15% discount earlier this month, sending its shares and dollar bonds plunging. The firm subsequently announced it had no short-term plan to issue any further shares.
S&P’s afternoon downgrade announcement didn’t cut into Friday gains for Sunac’s stocks and debt. Shares rose more than 4% and dollar bonds maintained an increase of nearly 3 cents on the dollar, according to prices compiled by Bloomberg.
©2022 Bloomberg L.P.