Opportunities

Distressed Debt Investors Turning to Real Estate

Posted on Friday, February 4, 2011


A survey of 100 distressed debt investors found that this year many will increasingly devote their money to real estate.
The survey, conducted by Debtwire and commissioned by Bingham McCutchen LLP and Macquarie Capital, polled investors from companies such as hedge funds, private equity firm, bank props or trading desks.
Results from the survey showed that respondents allocated 26 percent of their investments to real estate in 2010, and plan to allocate 48 percent of their investments to real estate this year.
Forty eight percent of respondents also said they believed first lien secured bank loans would be the least attractive investment opportunity for 2011, followed by second lien loans (44 percent), and asset backed securities (44 percent).
More than 50 percent of respondents polled said they believed commercial real estate default rates would not peak until the second half of 2011, with 16 percent saying the peak will not happen until after 2012.
By: Joy Leopold DS News


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