The central bankers’ Housing Bubble 2.0 is bursting worldwide, and will metastasize into the next Great Financial Crisis

by
Sharing is Caring!

by BoatSurfer600

via YAHOO:

(Bloomberg) — Sweden’s beleaguered property sector suffered another blow when one of the largest office landlords in the capital was downgraded to junk status by Moody’s Investors Service.

Stockholm-based FastPartner AB saw its rating cut one step to Ba1 with the possibility for further downgrades to come if the company cannot shore up its finances. The cut “reflects the rapid increase in interest rates combined with subsequently challenging capital markets,” Moody’s said in a statement late on Friday night.

The company’s shares fell as much as 10.4% when trading started in Stockholm on Monday. Its floating-rate notes due in May 2025 were marked half a point lower at a bid price of 91.6, according to data compiled by Bloomberg.

The property firm, with 80% of its rental value from the Greater Stockholm area, joins a growing list of so-called fallen angels that have seen their ratings leave the investment grade bracket and enter high yield. The rating actions are exacerbating a financing crunch in a market that is seen as a canary in the coal mine for Europe’s real estate industry given much of the debt is short term and floating rate.

See also  New housing inventory hits highest since 2008, but demand is for existing homes. Buyers lack funds to qualify. Homeowners skip meals to pay mortgages!
See also  Shocking gaps in Bitcoiners' financial literacy expose alarming misunderstandings of fiat, debt, and hard money.