Bloomberg News is reporting that the possible Riverton apartments default is widening spreads on commerical mortgage backed securities across the board. Evidently investors are shocked, shocked to find out that bond pools have loans based on such ridiculous assumptions -- like 93% of the units going market rate by 2011.
This isn't the second phase of the mortgage crisis. It is one small part of the stupid debt, to hell with tomorrow crisis -- federal, state, local, corporate, personal.
I wonder if the NYC pension funds are invested in these particular bonds. Rumor has it Tishman is having problems at Stuytown too, despite all the rent regulation illegal sublet abusers they were able to get rid of. Perhaps their underwriting assumed that whas the whole complex!
This isn't the second phase of the mortgage crisis. It is one small part of the stupid debt, to hell with tomorrow crisis -- federal, state, local, corporate, personal.
I wonder if the NYC pension funds are invested in these particular bonds. Rumor has it Tishman is having problems at Stuytown too, despite all the rent regulation illegal sublet abusers they were able to get rid of. Perhaps their underwriting assumed that whas the whole complex!
Let the lessons be learned.