I don't claim to have all the answers, but this is my thinking. All the trust loans are mortgages against commercial realestate. My understanding is that "margin calls" do not apply to such loans. The normal requirements are that payments are met and that the building is maintained in good order. As far as we know, these conditions are being met so there should be no problem.
Obviously, the market DOES expect problems. I assume the main concern is that a recession will have cascading bad effects - cause borrowers to go belly up, default on loans, and also cause value of the buildings that are the loan securities to drop below loan value, hence ultimately causing loss to REU.
There is also the general lack of confidence in Allco and the management team.
REU Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
