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<blockquote data-quote="Babagounj" data-source="post: 5913975" data-attributes="member: 12952">[URL unfurl=&quot;true&quot;]https://finance.yahoo.com/news/losses-pile-top-rated-bonds-110000825.html[/URL](Bloomberg) -- For the first time since the financial crisis, investors in top-rated bonds backed by commercial real estate debt are getting hit with losses.Buyers of the AAA portion of a $308 million note backed by the mortgage on the 1740 Broadway building in midtown Manhattan got less than three-quarters of their original investment back earlier this month after the loan was sold at a steep discount. It’s the first such loss of the post-crisis era, according to Barclays Plc. All five groups of lower ranking creditors were wiped out.Market watchers say the fact the pain is reaching all the way up to top-ranked holders, overwhelming safeguards put in place to ensure their full repayment, is a testament to how deeply distressed pockets of the US commercial real estate market have become.Bonds backed by single mortgages and tied to older office buildings dominated by one anchor tenant — like 1740 Broadway — are especially vulnerable, they say. Some analysts are already predicting further losses as more loans get sold for a fraction of their former value.</blockquote>

[QUOTE="Babagounj, post: 5913975, member: 12952"] [URL unfurl="true"]https://finance.yahoo.com/news/losses-pile-top-rated-bonds-110000825.html[/URL] (Bloomberg) -- For the first time since the financial crisis, investors in top-rated bonds backed by commercial real estate debt are getting hit with losses. Buyers of the AAA portion of a $308 million note backed by the mortgage on the 1740 Broadway building in midtown Manhattan got less than three-quarters of their original investment back earlier this month after the loan was sold at a steep discount. It’s the first such loss of the post-crisis era, according to Barclays Plc. All five groups of lower ranking creditors were wiped out. Market watchers say the fact the pain is reaching all the way up to top-ranked holders, overwhelming safeguards put in place to ensure their full repayment, is a testament to how deeply distressed pockets of the US commercial real estate market have become. Bonds backed by single mortgages and tied to older office buildings dominated by one anchor tenant — like 1740 Broadway — are especially vulnerable, they say. Some analysts are already predicting further losses as more loans get sold for a fraction of their former value. [/QUOTE]

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