Oh Sh*t, Commercial Real Estate CLO Loans Are Collapsing

After months of silence, a couple of critical developments from the beleaguered commercial real estate sector show up all at once. For the first time since the Global not-Financial Crisis, a senior tranche of a CLO took losses - a lot of losses - while redemptions threaten to force liquidations at one of the spaces more important CRE funds. Not good first signs for the bubble unwind.

Eurodollar University's Money & Macro Analysis

Bloomberg A Really Bad Sign for Commercial Real Estate
https://www.bloomberg.com/news/newsletters/2024-05-23/bloomberg-evening-briefing-a-really-bad-sign-for-commercial-real-estate

Bloomberg Starwood’s $10 Billion REIT Turns to Survival Mode as Real Estate Pain Lingers
https://www.bloomberg.com/news/articles/2024-05-23/starwood-reit-sets-drastic-redemption-limits-on-liquidity-crunch

Bloomberg Lenders Race to Buy Back Delinquent Multifamily Mortgage Loans
https://www.bloomberg.com/news/articles/2024-05-01/jpmorgan-says-commercial-real-estate-clo-loan-buyouts-are-set-to-reach-a-record

Fitch Global Contagion Risk Growing from Rising CRE Losses, Led by Office
https://www.fitchratings.com/research/non-bank-financial-institutions/global-contagion-risk-growing-from-rising-cre-losses-led-by-office-02-04-2024

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