Top Property Owners Are Creditworthy—They Might Default Anyway
Powerful investors such as Brookfield are starting to cut losing real estate bets to protect returns
Even if the property world gets a lot rockier, landlords with the deepest pockets should be able to service their debts. That doesn’t mean they will.
Optimists point out that today’s real estate troubles aren’t as serious as the 2008 crash. For one, property investors are more creditworthy than the overly indebted and flighty homeowners who got banks into hot water during the global financial crisis. Of all the loans that Fannie Mae issued on single-family homes in 2007, around 16% wound up in default. Delinquency rates for...
