First Distressed Bond Sales are hitting the market

[DrunkenSailor]

This is happening faster than I thought it would I thought we would have a couple more weeks.

Royal Bank of Canada stock exchange news - MarketScreener

Royal Bank of Canada : News, information and stories for Royal Bank of Canada | Toronto Stock Exchange: RY | Toronto Stock Exchange

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Cheescake Factory and a number of other large restaurants and retailers have advised their landlords that they will not be making their April 1st rent payments. Couple this with Q1 earning reports due to come out in the coming weeks and the fire sale is going to get worse. The gov has been urging banks to hold their ground on the bonds and not start the repo process. RBC is the first one to say F-that we want out. If others follow suit this could get real interesting real fast.

 

[EmpirE231]

This is happening faster than I thought it would I thought we would have a couple more weeks.

Royal Bank of Canada stock exchange news - MarketScreener

Royal Bank of Canada : News, information and stories for Royal Bank of Canada | Toronto Stock Exchange: RY | Toronto Stock Exchange

www.marketscreener.com

Cheescake Factory and a number of other large restaurants and retailers have advised their landlords that they will not be making their April 1st rent payments. Couple this with Q1 earning reports due to come out in the coming weeks and the fire sale is going to get worse. The gov has been urging banks to hold their ground on the bonds and not start the repo process. RBC is the first one to say F-that we want out. If others follow suit this could get real interesting real fast.

The fed announced that they will buy up whatever they have to, with no set number.......So you're gonna see a lot of this going on.

 

[DrunkenSailor]

The fed announced that they will buy up whatever they have to, with no set number.......So you're gonna see a lot of this going on.

They are working with Blackrock again to purchase the bad bond assets. This are the portfolios I plan to make a run at soon.

 

[rrrr]

They are working with Blackrock again to purchase the bad bond assets. This are the portfolios I plan to make a run at soon.

I found it interesting that the government is using private firms to assess values and secure the portfolios. Didn't know that had happened in 2008 until I read about it in the WSJ.

 

[DrunkenSailor]

I found it interesting that the government is using private firms to assess values and secure the portfolios. Didn't know that had happened in 2008 until I read about it in the WSJ.

If you look at every significant financial downturn in our economy the private sector and our government have partnered together to see us through. Hell jp Morgan bailed out the us governemnt a couple of times in the 1890's and early 1900's.

 

[traquer]

So do you think this means that short real estate ETFs won't perform as well as I thought? I'm looking to pick up some REK and see what happens with it this year.

 

[DrunkenSailor]

No they will. I would look at anything that is shorting the commercial bond market as a good play. It's yet to be seen how the 4 trillion the gov is gonna pump into it will shake out. At the end of the day it's gonna come down to liquidity. The gov is gonna stroke the check but will the market lend or will it sit on the cash... Retail and restaraunt backed debt was already in a bad spot in terms of over leverage. If they canT refi the debt....