"Across the US, deals are starting to pick up, revealing just how far real estate prices have fallen. That’s spurring widespread concern about losses that can ripple across the global financial system – as underscored by the recent turmoil unleashed by New York Community Bancorp, Japan’s Aozora Bank and Germany’s Deutsche Pfandbriefbank as they took steps to brace for bad loans.In Manhattan, brokers have started to market debt backed by a Blackstone-owned office building at a roughly 50 per cent discount. A prime office tower in Los Angeles sold in December for about 45 per cent less than its purchase price a decade ago. About the same time, the Federal Deposit Insurance took a 40 per cent discount on about $US15 billion in loans it sold backed by New York City apartment buildings."
SRV Price at posting:
$3.60 Sentiment: Hold Disclosure: Held
