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New York -- As rating agencies tighten up ratings for commercial mortgage debt securitizations, some deals relying on such funding may not be closed.
Risk associated with real estate investment is being underpriced, according to John Kriz.
"People are not being paid as much as they should be for some of the risk they're assuming," he noted at a panel session on risk at the National Association of Real Estate Investment Trusts' investor forum here.
Mr. Kriz, managing director with a Moody's Investors Service group that rates unsecured REIT debt, said, "The glass is less than half empty and draining," adding that it is "worrisome" to see prices in "secondary and tertiary markets being bid up."
Jay Sugarman, chairman and CEO, iStar Financial, doesn't believe that ...
Source: HighBeam Research, Will REITs Face Funding Squeeze?