Jeffrey Bernstein

Putting the REIT Maturity Crunch into Perspective

Since when it is it a crime to have debt maturing? Only since the financial system imploded. REITs for the most part are at little risk of defaulting on their loans because their cash flows don't cover debt payments. Of course investors are willing to pony up more equity even at the risk of diluting themselves, rather than have a total loss on an asset that can actually support its debt load. Even in bankruptcy the equity might have value as the maturities would be pushed out...liquidating these entities makes no sense. The maturity default thing has been beaten to death. Yes we could have hyperinflation and an implosion of the world economic systems in the next few years.....if we do there will be much better shorts from here than the REITs.