Standard & Poor’s had downgraded 15 classes of bonds backed by a $425 million loan secured against the Four Seasons Hotel in New York and 3 other luxury resort hotels. The action was triggered by a drop in cash flow which was 46% below S&P expectations. Surely, the expected cash flow figure had already been [...]
Just saw this post on Zero Hedge about a downgrade of a recent Re-REMIC issue by Standard & Poor’s. re-REMIC’s are repackaged mortgage-backed securities of a supposedly more secure pedigree as they were to have been constructed of securities identified to be of better quality and thus less likely to default. Now, just 4 months [...]
I have embedded a presentation from Oaktree Capital Management, L.P. outlining their strategy for participating in the PPIP program. It is quite interesting as it outlines their view of the investment opportunity presented through PPIP.
One key item that caught my eye was their prediction that retail property capitalization rates will be 900 basis points over [...]
There have been a handful of blog posts and various articles written about the curious decision of Standard & Poor’s to upgrade several commercial mortgage backed securities (CMBS) to a triple-A rating just one week after downgrading those same securities to junk or near-junk status of double-B and triple-B minus. What is interesting is that [...]
