Exactly. Once sold as 100% safe investments these REITs and related bonds are each becoming a potential financial land mine. The workout guys will do well but the holders could be facing a haircut IMO.
Yes, I remember hearing the ads... and thinking about potential problems.
“Once sold as 100% safe investments these REITs”
Yup—that is one of many reasons I never trusted “financial advisers” in the modern era.
They flatly refused to acknowledge the possibility that the era of easy money (low interest rates) could end and the impact it would have on sectors like commercial real estate.
It is their customers who will be punished.
Reits went through this once before in the late 1970’s. The liquidation discounts were pretty heavy. Next up will be defaults on leveraged leases for ship financing. Cruise line and Tankers hardest hit.