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Commercial Real Estate CLOs Near Brink as Distressed Loans Surge - bbg

REAL ESTATE
  • Bloomberg report on problems on the CRE CLO market.
  • Not much new in here, but with delinquencies up sharply in the past six months and interest rates remaining elevated, defaults are likely to materialise as maturities are reached. Maturity extensions are delaying this but the weakest borrowers won’t benefit.
  • €IG real estate spreads have held onto big gains from the past 3-6 months despite rate cut expectations getting pared back. Defaults rolling through the CLO market pose a risk to sentiment down the line.

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