Some recent merger and acquisition activity in the real estate investment trust sector that has involved the use of debt funding has resulted in lowering of the credit quality of some of the firms involved, Moody's Investors Service reports.The New York-based credit rating agency believes that this wave of M&A activity in the sector could slowdown as institutional investors, in particular, hit their targeted real estate allocations and as other investment avenues become more attractive. This is more likely considering that REIT prices have gone up in recent years. As to whether the leveraged buyout of Equity Office Properties "represents the high water mark or the tip of the iceberg," for leveraged buyout activity, Moody's analyst Christopher Wimmer notes that "the REIT privatization party may not be over, but it could be time to switch to water." And John Kriz, Moody's managing director of real estate finance, does not believe that the public ownership of real estate through REITs is becoming a less popular model.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
5h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
10h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
10h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago