6 days ago • 1:38 min
If you look at the world’s major stock markets, 2023 has started off with an absolute spring in its step. But if you look at this corner of Europe’s real estate market, it’s limping pretty noticeably. According to data compiled by Bloomberg, almost $175 billion of commercial real estate credit is “distressed” – meaning that these loans are unlikely to be paid back. That may be a sliver of Europe’s total real estate bond market, but it’s roughly four times more than what’s being seen in other industries. And it’s only likely to get worse, as interest rates continue to rise and real estate valuations fall.
See, when valuations decline, they place more stress on such debt, since real estate loans are usually secured against the value of properties. Falling real estate values can result in fo
With the VIX so low, you might want to take a cautious approach.
This chart suggests we may be at a turning point.
With its exchange steadily bringing in money, GMX has been trying its best to break out.