In this episode, we examine the effects of rising interest rates on real estate operating companies and real estate investment trusts in two major regions – Europe and Asia-Pacific. In the former, higher rates have driven a deterioration in credit quality across the sector. And we expect commercial property values to decline in the coming months. On the other hand, business conditions are generally better in Asia-Pacific and valuations have held steady. At 11:50, we check in on the state of the market there, where China’s reopening is having positive spillover effects.
In this episode, we examine the effects of rising interest rates on real estate operating companies and real estate investment trusts in two major regions – Europe and Asia-Pacific. In the former, higher rates have driven a deterioration in credit quality across the sector. And we expect commercial property values to decline in the coming months. On the other hand, business conditions are generally better in Asia-Pacific and valuations have held steady. At 11:50, we check in on the state of the market there, where China’s reopening is having positive spillover effects.
Guests: Oliver Schmitt, Vice President – Senior Credit Officer; Stephanie Lau, Vice President – Senior Credit Officer, Yu Sheng Tay, Analyst; all of the Corporate Finance Group at Moody’s Investors Service.
Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.
To read more on this topic, visit the Behind the Bonds page on Moodys.com. (Some content available only to registered users or subscribers.)
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