As stated previously, the CMBS market is in a precarious situation.
The MBS market is also in the same situation as CMBS because the existing home sales figure is also falling.
Recently, the car rental giant, Hertz, has filed for bankruptcy.
https://edition.cnn.com/2020/05/22/business/hertz-bankruptcy/index.html
This car rental firm bankruptcy has also brought out the car debt market issue into the open. The US used car prices are falling and many car derivative products (car debts) created by the banks and financial firms are also in a big trouble as there will be a severe mark down in the used car values.
Let's watch how this will pan out.
2 comments:
Let's do a summary about the US debts that are in troubles or going into troubles.
1. oil debts
2. cmbs
3. mbs
4. car debts
We have to monitor the US debt markets to gauge the US economic health.
https://finance.yahoo.com/news/risk-clo-losses-keeps-japan-200000130.html
Japan is cutting back on its purchases of clo which means that debt issuers are finding it harder to sell their debts which were repackaged into debt derivatives.
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