Why Commercial Real Estate Is Next: 'Challenging Technicals' Are About To Become 'Weak Fundamentals'
For the past two years, while largely nonchalant with broader price levels, the Fed has been warning about two particular asset bubbles: that of easy lending particularly in junk bond, and of a commercial real estate bubble. Following the recent rout which has seen the biggest HY selloff since the financial crisis, especially in the energy sector, it is safe to say that the junk bubble has burst - the only question is how much worse it will get before it bottoms (UBS had some unpleasant thoughts on that matter).