REITs

REITs

Japan Decision To Allow BOJ To Monetize ETFs, REITs And BBB-Rated Bonds Sends Yen Higher, Gold Spikes

Earlier, the Japanese government approved the BOJ decision to monetize in addition to the traditional JGB securities, also ETFs, REITs, and BBB and higher-rated bonds. In other words, the BOJ is now permitted to do what the Fed will have authority to do with a few months: buy virtually all risk assets, as buying ETFs is the same as buying the general market courtesy of the most traded security in the world, SPY, to push and pull the entire market in whatever direction it goes. There are two questions at this point: is the BOJ allowed to buy foreign (read US) assets that fall under the above buckets, and whether the FX currency swap line recently established with the BOJ will allow the Fed to use Japanese proxies to monetize various US assets. Or will the Fed first seek input from the BOJ on how to proceed with sending the Dow to 36k.

Euro Tanks on Bailout, Hedge Funds Cheer and Buy REITs, Retailers, et al

How many times can they run the same play over and over? The Eurozone dive bombs, and investors immediately start buying REITs, retailers, and other assorted garbage. Maniacal trading has overtaken the stock exchanges as the 20-yr. old motion chasers are getting frantically horsewhipped by the FemBot portfolio managers to "buy whatever is going up, regardless of fundamentals".

PIIGS On The Verge of Insolvency. Investors Celebrate By Buying REITs and Brokers

Once again, the algospasms have turned many funds into dust as those attempting to short brokerage stocks, REITs, etc. in front of the European implosion are getting killed. Clearly, investors are voting that U.S. commercial real estate is the last bastion of safety, and the primary growth industry in 2011 will be stock trading.

Total Spread Blowout on PIIGS, Algospasms Trigger Forced Short Covering in Consumer Stocks and REITs

Today is proof that the Algo/Igor/Robo computer trading programs have run amok. While Wall St. engages in bear raids against foreign countries, panicked algos are triggering wild squeezes everywhere, causing lots of head scratching among the pundits trying to explain these insane moves. Proof that the worse the Greece situation gets, the retail stocks simply go up faster.

Retailers, REITs Celebrate Michelle's New Red Outfit

Anyone notice that Michelle C-Squared has been gradually dolling up for the inevitable Dow 11,000? Hate to sound like a broken record, but it appears that each day we have another round of breakouts in the retail and REIT sector, as if fund managers are giddy at the prospect of Michelle losing a few buttons on her blouse on Monday.

Systemic Crisis Solution: Buy Bonds, REITs and Banks

Another horrific reversal of the "risk-on" / "risk-off" trade today, as investors were spooked over the possible financial implosion of Greece. And in today's "mouseclick" world, hedge fund managers hit the "eject" button and sold anything and everything related to emerging markets and piled into safety assets.

Reggie Middleton's picture

I don't know if it has been officially declared here or not, so I will say it explicitly. Since Wall Street DOES NOT charge for their research, it is essentially a loss leader for sales. We all know this, yet we pretend that it does not happen. Well, it does. It's pervasive. It's explicit. It's now! The goal of Wall Street research is not to enrich the retail or institutional brokerage client, but to pave the way for the underwriting, sales and trading departments. Go ahead. Prove me wrong. I dare 'ya.

Reggie Middleton's picture

The recent bear rally has driven most of the solvent, semi-solvent and absolutely insolvent CRE stocks up, quite a few approaching 100%, while their macro outlook has deteriorated significantly, along with their fundamentals. Quite a few have actually acted in cahoots with the banks that held their increasingly worthless debt, having issued secondary offerings basically converting the bank holdings of debt that didn't have an icicles chance in the hottest portion of Hell of getting repaid, into worthless toilet paper, heretofore marketed as stock certificates. They have also begun offering this used toilet paper as dividends. If this isn't the sector screaming for me to come back and short it, I don't know what is.

Goldman Forecast On CRE REITs: "Flat To Down 15%"

It is sad that modern capital markets have gotten to a point when neither fundamental nor technical analysis matters. The only question is how many dollars with the Federal Reserve print tomorrow and how higher will that push stocks. For those deluded amongst you who still believe 10,000x EV/EBITDA is marginally to quite-marginally rich, and don't feel like chasing trends and passing the hot potato to the latest Down syndrome afflicted E-Trade client, here are some observations on arguably the most overbought (by a metric mile) sector, REITs, courtesy of masters of the (metric) universe, Goldman Sachs.

More On Substantive Consolidation Of REITs And Other Bankruptcy Issues Facing REITs

"Many of the issues that are cropping up in the ongoing wave of REIT and real estate restructurings
and bankruptcies are novel, and many of the issues that arise in bankruptcy in the
ordinary course have not been previously applied to the complex real estate financing structures
created in recent years. It is important to appreciate, but not to exaggerate, the hazards now facing
both lenders and borrowers." - Wachtell Lipton

"Bankrupt" Jefferson County Did Not Buy REITs Today, Summons National Guard To Maintain Order

Oddly enough, Jefferson county which got into a dash of trouble buying some interest rate swap or another without reading the prospectus which despite guaranteeing perpetual appreciation distinctly said in the invisible print that total loss of principal is another side effect of transacting with Wall Street, has apparently been unable to participate in today's 175/75 L/S unwind which blew the REITs into the stratosphere and got Bob Pisani's panties in a bunch.