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A sale of assets will affect the prices and many of their competitors in real estate development are similarly indebted and on thin ice. Also, their contractors
by kryptiskt 5y ago
A sale of assets will affect the prices and many of their competitors in real estate development are similarly indebted and on thin ice. Also, their contractors and suppliers will be stiffed and they probably don't have the same diversification opportunities.
- tommiegannert 5y agoI think this is a big thing. If everyone defaults at the same time, the property market just vanishes as everyone force-liquidates to manage the defaults. If that affects collateralization levels, it's even a positive feedback loop. The RE companies that have good balance sheets will have great opportunities in the coming years.