Let's also remember that REITs are up 26% in Europe since June last year ...
Stirrings and signs of life ...
LP's deserve better...
This BB article highlights a group of funds who seem to be operating under the impression that CRE values did not go down when interest rates went up. Some of them are managed by some of the largest private asset managers on the planet... these people should know better ...
I just do not see how people can be hanging onto 'flat' NAV's in this way ... valuers will tell you until they are blue in the face that GAV is off 15-20% in most European portfolios ... so NAV should be off between 25% and 40% in these funds ... fact... anyone who tells you otherwise is not living in the real world.
The impacts of this are fairly obvious ... the market is bottoming and liquidity is returning ... so ...
- Funds who have marked down will get the benefit of the cyclical upswing ... but people in the funds who's NAV ahave flat-lined will not ... their NAV will keep flat lining ... so will their performance ...
- Funds who have a marked-down and offer a better basis for their clients will see new inflows and more importantly they will be able to trade assets at NAV or better and thus offer liquidity to their investors ... the 'flat-liners' cash will remain trapped...
- Funds who have marked down, receive inflows and then trade can reposition their portfolios for upside and may new investments at better prices ... so their upside can be maximised ... flat-liners will not get that boost and their portfolio will be positioned for yesterday's market not tomorrow's...
This is a really bad look and its going to be bad for their long run performance ... flatlining GP's need to step up ... LP's deserve better...
Thoughtful article ... worth a read...
Now that most of the ideologically obsessive Tories are gone perhaps its time for a thoughtful considered economic debate about the benefits of integration ...
Interesting chart ...?
Email me if you have an answer! I can think of a few factors that would be in play but I am still at a bit at a loss...
Europe still not in recovery...
Interesting ...
Bold statement in response to something ... recession?
If it did my thinks you'd have a liquidity problem ... ???
Curve control lives ...
To be fair - China is simply doing what every one else has been doing for the last decade and a half...
This is the next big thing...
Germany is the place in Europe where there is genuine problems for creditors and dictionary definition 'distress' today...
Sweden is close but despite all of the noise it is not quite there ...
