.crazylegs..

Is There a REIT Reverse Inquiry Conspiracy?

@Rigged - Very simply, if there is any equity value in the entity, the SENIOR bonds can not get crammed down in any way. That is the way a capital structure works. You are assuming the equity is gone which may not be the case if it's a liquidity filing (i.e. can't refinance or secure properties). I can swim just fine in the deep end, why don't you take your obnoxious comments elsewhere.

Is There a REIT Reverse Inquiry Conspiracy?

This article makes one believe that the only way to invest in REITs is through the common stock. Some very smart investors have been buying the senior unsecured debt of REITs at depression like valuations that already embed these terrible assumptions. If you're right, you get a great return, if you're wrong you have a free run to the assets once the secured debt holders take their properties. Sounds like a good bet if you can find REITs that are 1. lowly levered and 2. are mostly financed by senior unsecured debt and not through secured mortgages. When you own the debt and they can't refinance, you end up with ownership of the assets on an unlevered basis (i.e. in a workout the debt holders get equity and you end up with many properties that have zero debt on them.) But this article is about a conspiracy theory...not how to properly invest in REITs in difficult and uncertain times.