Some of Puerto Rico’s latest visitors aren’t there to bask in the breeze. The distressed mortgage investors have landed. An eye on the island economy are now seeing a frothier market for home loans and foreclosed properties, exemplified by bidding wars on deteriorating loans. Investors and developers are jumping in to buy distressed condominium and hotel properties and redevelop them. However, risks include a longer foreclosure process (compared to the U.S) and less liquidity in the market for deals. (Via Bloomberg)
Banks are dumping Treasuries and buying mortgage-backed securities (MBS), according to a report released Friday by analysts from TD Securities. Major U.S. banks have sold $39B in bonds over the past four weeks, the fastest rate since 2009. “We believe the report’s proposed easing of…regulations may have incentivised banks to shed some level 1 high quality liquid assets,” TD analysts said, referencing a June 12 report in which U.S. Treasury Department said changes to banking rules on capital buffers could be possible. This year, banks’ Treasuries holdings dropped by $59B while their investments into MBS grew $69B. (Via Reuters)
A consortium of Chinese investors will buy one of the world’s largest industrial landlords, Global Logistics Properties Ltd. (GLP), in a deal valued at $11.64B. GLP accepted the offer, structured as a take-private buyout. Reportedly, The Blackstone Group and Warburg Pincus had also expressed interest in acquiring GLP. (Via CoStar News)
More News to Note:
National Office Vacancy Rates Show Stage of “Equilibrium”
Industrial Availability at Lowest Level Since 2001
As the Nature of Brick-and-Mortar Retail Changes, What Does it Mean for NYC?