Credit agencies have potentially misrated over $100 billion of commercial real estate debt, with some defaulted deals still holding the highest credit ratings. The rise of single-asset, single-borrower deals, where mortgage bonds are backed by one property, raises concerns similar to those seen before the financial crisis when high ratings were assigned to bonds backed by subprime borrowers.
Credit agencies have misrated more than $100bn of commercial real estate debt, new election polls suggest the UK could be in for a seismic political shift, and the Philippines has been secretly reinforcing a dilapidated warship marooned on a South China Sea reef. Plus, drilling for naturally occurring hydrogen gas was deemed unfeasible, but prospectors now think differently.
Mentioned in this podcast:
Poll predicts Rishi Sunak to lose seat in Tory wipeout
Why we can’t be sure of the size of the Labour swing
How a cigarette sparked a slow-burn search for buried ‘gold’ hydrogen
Philippines secretly reinforces ship at centre of South China Sea dispute
Ratings agencies give high marks to bonds financing defaulted properties
The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Josh Gabert-Doyon, Ethan Plotkin, Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Our intern is Prakriti Panwar. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.
Read a transcript of this episode on FT.com
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