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PBB; More Bad News On German Office Values

FINANCIALS

More negative news for PBB/DePfa (PBB GY) as Germany sees record office property “slump”.


  • BBG reporting German VDP association data indicating a 13% drop in 4Q23 in its real estate price index, specifically indicating offices as an area of weakness.
  • Germany regulator BaFin put a statement out on 7-Feb indicating it “is monitoring CRE” market in light of the drop in PBB bonds that had happened earlier in the week, with fears from US CRE market (in wake of NYC Bancorp news) also cited.
  • PBB (rated BBB) saw its cash curve widen quite meaningfully last week, having held relatively steady YTD prior and this remains a very high risk situation.

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