As of late, credit markets have become dysfunctional, or put more
accurately, “functional” in the prudent pricing of risk in the wake of
losses incurred by financial institutions and lenders owing to the OPM
(other people’s money) methodology of writing loans destined for sale
through market securitization. The resultant problem of ‘shrinking
liquidity’ is aggravating the operations, to say the least, of many
real asset and related financial concerns. In particular, this has
considerably impacted the ability of commercial real estate companies
including General Growth Properties (GGP), which has huge debt obligations payable in next few years, to refinance its loans and capital expenditure [capex]
requirements.Complete Story »" (2008-2-7)
February 7, 2008
GGP Final Analysis: Fire Sale of Prime Properties
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