AAA Bonds Bust Reveals The Depths of the US Office Market Crash

[@ShamileII]

"Everyone that holds AAA bonds expects to get paid back" lol....quote of the year!

[@omonkkonen6676]

Well triple A should mean least risk involved and so lowest return. If triple A bond holders do not get paid back it should mean all lower quality bonds are junk…

[@dochood1966]

Her chuckle as soon as he said, "The bond holders expect to get paid back"... "Oh, that's just SO CUTE!!! The bond holders expect to get paid back!"

[@Wasengenyie]

...and they will... the FED will see to it....they will buy all the bonds

[@usptact]

that chuckle 😂

[@YMQ]

Has he heard of the 2008 financial crisis? Someone send him a link to The Big Short

[@Andy.mikhail137]

Nice that sounds a lot like a scene from the big short

[@shelbynamels973]

the only thing missing is a Jenga tower.

[@carlosgamez6230]

Just wait for the Chinese real estate market go all “08 soon. I bet the contagion affect will be global

[@Stromboli15]

EXACTLY!! Like the end of the movie said….nothing was ever done, nobody held accountable, re-named and steadily continued since 2008….🫶😁👌😉😘🤌

[@macalister8881]

​@@carlosgamez6230 only a small percent is tofu , most of china is booming ohh did msm tell you something else😮

[@carlosgamez6230]

@ I mean we all know about the giant ghost cities they have built, unfinished apartment buildings that have been with lots paid for already, one of the biggest players failed (evergrande), earlier this year 40 banks failed and was acquired by larger banks. Shadow banks that are unregulated are under tremendous pressure and debt. The only thing propping up China at this moment is monetary fiscal stimulus but eventually the engine runs out of gas

[@chetanrawool]

the moment thy said AAA bonds and real estate, my brain went to 2008.

[@seann.7630]

Yep, me too. First thing I looked at was when then video came out. I was hoping for 2008 😮

[@pojokunam]

​@@seann.7630 don't hope for 2008. The wealthy didn't really suffer from 2008, just the regular person did.

[@raybod1775]

Not that bad.

[@lakeguy65616]

Surely, these bonds are no longer rated as AAA. When the bonds were issued 10, 20, or 25 years ago, the rating agencies considered them AAA. But given the crisis in Commercial Real Estate, they should have been downgraded months or years ago.

[@Zero11_ss]

Banks are colluding to keep things propped up and going as normal so they wont have to take the hit on these loans. Probably desperately trying to offload them the last 2 years

[@PP-oz2oj]

Rating agencies are the last ones to act.

[@masonite1973]

The whole house of cards will come tumbling down

[@omonkkonen6676]

@@PP-oz2oj “Issuers of securities pay the rating agencies for providing rating services, and therefore, the agencies may be reluctant to give very low ratings to securities issued by the people who pay their salaries.”

[@WesBergen]

Remember „This time it’s different!“.😉

[@masonite1973]

How are they still rated AAA? Something smells scammy

[@magesalmanac6424]

Sub prime bonds? 😎 2008 is back baby

[@tomtommyl805]

I think the raters get paid by the bond issuers so.......

[@mason5540]

@@tomtommyl805 💯

[@robertewalt7789]

@@tomtommyl805 You are correct. The issuer pays the credit rating agencies. A big source of bias. Holders of corporate bonds need to do their homework.

[@sugadre123]

Nothing is real anymore it seems. If someone says they are triple A then they atr triple A regardless of the facts. I dont know when the world became like this

[@damham5689]

Like back when Moodys rated junk mortgage bonds AAA. Ratings companies are a scam.

[@hcab8118]

This should be headlines

[@cristianflorinionescu1849]

No, it should not, this is only a problem for those who hold those bonds, and a legal problem for those who rated AAA those bonds. That’s it 😊 Own Bitcoin.

[@macalister8881]

​@@cristianflorinionescu1849 buy low below $35,000 sell at above $80,000 every time 😮

[@tvviewer4500]

Louis Rosmann pointed this out a while ago… so did most business people

[@Liberty55555]

so much happy faces of host and guests as if they are talking abt some movie

[@derrikarenal3308]

Are you NOT entertained? Play with Fake Money; expect Entertainment. USD is FAKE. beyond FAKE, unrecognizably FAKE. The Emperor Has No Clothes fake; USD is literally, an Exit Scam. this crowd knows.

[@serene_shepherd]

“We kinda like analyzed the data…” Now that professional journalism.

[@tsib6703]

There’s a grammar error in your comment. Should we devalue your competency bc of a lil error like that? I don’t think so. Give her a minimal amount of grace then 🤷‍♀️

[@kerriwilson7732]

@@tsib6703 minimal is all she deserves. If your one job is to give an articulate interview, and you sound like a high schooler called on unexpectedly... find a new spokesperson.

[@joesmith3590]

@@tsib6703like like like. lol. DEI hires.

[@peterwatters]

​@@kerriwilson7732Her real job was making the published report they referenced. This is the canary in the coal mine. If you had asked me what the safest bet for investment was before 2019, I would have thought it would be in commercial real estate in the downtowns in the largest cities.

[@pyootchnich]

The history of using the word “like “ conversationally is pretty fascinating. Children use the word because they need a filler because their vocabulary hasn’t developed yet. When adults use the word excessively, they typically are signaling that they want to be considered youthful and of a younger generation. This is why watching a middle-age person engage in this behavior can be offputting. It’s fascinating that people who deploy this tactic don’t intuitively understand this. Obviously, this young woman wants to convey a sense of intelligence and authority, yet these mannerisms completely contradict that effort.

[@PD55_]

"Kinda everywhere ...". Glad I'm already broke, I woulda lost a lotta money.

[@magesalmanac6424]

lol true, I don’t do any risky financial stuff. Sure it means low rewards but all my savings are secure!

[@bladeqmaster]

@@magesalmanac6424AAA bonds among the safest out there

[@julianasimon8720]

Where can we access a copy of the report being referenced?

[@lemmegameu]

LIKE this is not a problem LIKE it's a small part of bond market LIKE there's nothing to see here LIKE it's all ok LIKE...

[@RaoVenu]

My 6 year old talks in a similar fashion "I was like... and she was like...and then I was like....".

[@lemmegameu]

@@RaoVenu Yeah... financial experts of our times...

[@robbies789]

Must have gone to school during Covid 😂

[@ss-fc2fh]

I'd would enjoy seeing you on live TV. She seemed nervous. Give her a break.

[@jeffjones6951]

Solution is simple: convert office buildings into residential apartments

[@dhfyfuejejne]

It's not that simple as you think.

[@tatianastarcic]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.

[@TinaJames222]

True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

[@nicolasbenson009]

In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.

[@Vincent-j8u]

My partner’s been considering going the same route, could you share more info please on the advisor that guides you?

[@nicolasbenson009]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Melissa Terri Swayne for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

[@sharonwinson-m8g]

I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look SOPHIA up on google and send her a message. You've truly motivated me. God's blessings on you.

[@pa9121]

A building that is losing tenants is having a problem, but a building with lots of tenants - that market is booming! Such great analysis from Bloomberg. They are almost as asleep as Michael at the Al Smith dinner

[@brian1246]

Good reporting by Carmen! This will be more talked about soon

[@Phlegethon]

Isn’t China only AA? So the rating agencies say this is safer than the second biggest economy paying you back

[@swedgephd]

Well they’re wrong

[@ritwik5774]

It's actually the largest economy, and it's not even close. Everyone's largest market is China from cars to socks. China's global market share for everything ranges from 30-90%.

[@theonlycaulfield]

​@@ritwik5774Consumer market is not the same thing as economy size.

[@ritwik5774]

@@theonlycaulfield I'm going to pretend you didn't just say that. When you don't know a thing about economics why talk about it?

[@theonlycaulfield]

@@ritwik5774 I'll repeat, a country's domestic consumer market is not the same thing as economy size. A country's economic size is measured in GDP. US GDP is currently around 50% higher than China's.

[@peterbedford2610]

San Francisco commercial realestate is still about 36% vacancies

[@charlierodriguez8489]

Need to make more popcorn. Looks like a great year coming up!

[@rezwhap]

Deja vu! They downplay it because it’s not widespread but that doesn’t excuse the rating.

[@georgex.patton.5362]

I am curious how many (if any) of these AAA issues are insured (either to lower their initial borrowing cost or to increase their rating from A or AA to AAA)? If there is bond insurance behind some of these issues, how big are the $$$ exposed relative to the insurers/reinsurers?

[@cvrart]

To what extent are some of these AAA CRE bonds incorporated into collateral upon which other loans are funded, and what is the potential for systemic risks / contagion effects when it gets in full swing?

[@ritwik5774]

None. Are you new here? The fed prints like there's no tomorrow. Keep everyone solvent but say hi to 20% inflation.

[@alystero8838]

​@@ritwik5774 Do you know what will happen when the fed stops printing money?

[@the_expidition427]

@@alystero8838 Game over

[@jerryrichardson2799]

Commercial and retail real estate are in worse shape than residential, arguably.

[@MyKharli]

Very clearly put.

[@gregknipe8772]

Bloomberg, if your guest is on camera, speak into the camera, not to the extreme upper corner of the screen.

[@crosslink1493]

And the guest should stop using the word "like" as they are trying to shape a thought into a sentence (this looks/sounds like a pre-planned interview).

[@goma12x]

I am surprised about the lack of movement of commercial real estate bonds. You would think someone would have reported a loss's but so far no one has. I can see why this us one reason gold is at its all time highs

[@Peterl4290]

In recent years, a significant portion of the stock market returns have been driven by just a handful of companies that have come to be known as the “Magnificent 7” (AAPL, MSFT, NVDA, GOOGLE, AMZN, META, TSLA) Which of these stocks do you consider the 'healthiest' in terms of profit and risk? I have about 300k ready money to invest for my eventual retirement.

[@larrypaul-cw9nk]

If you don’t understand the markets then stick to an index like the sp500. Dollar cost average and hold long term, or better still consider financial advisory

[@Mrshuster]

The key is diversification. Personally, I delegate my day-to-day investing to a license professional, cos my job doesn't permit the time to analyze stocks myself. Thankfully, my portfolio has now 5X in 5 years, just about 10% shy of $1m. Stay motivated friend

[@sabastinenoah]

i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as wel

[@Mrshuster]

Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@sabastinenoah]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@surreygoldprospector576]

Sell it all... today.

[@silo3com]

Is it even possible? Yes, but at what cost? I'll have to pay.

[@des6late_]

How funny. You mean to tell us the problem wasn’t fixed?! How surprising?

[@glass8289]

Surprising to see truth comes out from Bloomberg.

[@macalister8881]

Sure they are such great people😅

[@OOSimon]

Hey, I've seen this one before

[@noha163]

History repeats itself

[@wbay3848]

Only because history never changed. Who did we bail out? Oh yeah. The people we will bail out again. The rich.

[@iiio12]

OLD??? those built > 1930s with basic maintenance may last indefinitely. Businesses are walking away because rent is too high for this environment, rent is too high because property market is overvalued.

[@Watcher-ts3ql]

So these Triple A bonds a pack of cat **** wrapped in dog**** as certain actor said in a certain very good movie. MAJOR 2008 VIBES

[@michaelmcfeely6588]

No bailouts. Not again. Never again.

[@rambodude467]

keep dreaming , there absolutely will be but not for lowly peasants but rich & billionaires. and guess who will be paying for it

[@who2u333]

Anyone holding any bonds tied to commercial real-estate at this point is either a fool, or looking to lose money and take the write off. The writing has been on the wall for commercial real estate for at least a year.

[@thenoodlebuddy]

So these bond holders profuts eill be hit ad they eill need to doengrade their credit eith under OFRS9 means they need to recalculate their expected credit losses, ehich meand they need to increase their lisbilities on their balance sheet (so value of assets are reeuced) and then profit and loss statement will also see sn increase in costs which means that profitability is reduced

[@gereral1_jackofalltrades]

Can government bail out banks again? People are homeless and food banks usage at records and jobs layoffs. I think this will be worse than 08 but market stock holders will have to bear this loss without bailouts. Same goes with bank depositories will loose their savings with bank bailins as banks collapse. Money supply is drying up.

[@rustyrider12]

Bail in…Google it 🤯

[@stephenphillips6245]

Asset prices need to fall...too hard to hold every up at an elevated level.

[@rupertsmith6097]

So this is a CLO? I mean there seems to be some bond structure there with lower tranches being wiped out, and then the AAA hit.

[@JohnHall]

THIS is why our companies were trying to force us to stop working from home. Not because it was better for the organization, but to prop up this market. Lots of wealthy investors pressuring other wealthy leaders.

[@HowShouldIKnow6543]

The camera loves Ms. Arroyo, that smile will bring a million watchers

[@GBooth]

That's good, 'cause her diction sure won't.

[@wojciechgrodnicki6302]

Forcing employees back into the office makes sense now.

[@starventure]

The problem is that newer startup companies are realizing the cost of maintaining brick and mortar offices and are finding way to avoid it, which puts pre-existing companies at a disadvantage and encourages them to do ditch the office model.

[@rhh3828]

It should not be allowed to give a high rating to a bond that’s payments are “backed” by future revenue. The company and the rating agency are responsible for that rating. I don’t expect a loan to the bank to be “backed” by my salary and if I lose my job I then don’t have to pay. No I’m responsible, they don’t care where the money comes from. Wild

[@Muricans1776]

She was like yeah sure you forgot it’s an investment….AAA … or not

[@SteveSonoga]

Here we go again, can they help them selfs.

[@muralimalyala5505]

It's not AAA, it's AAA(sf) which basically implies that no one knows jack shi* about what's in store!

[@silo3com]

So it begins....

[@southgpfi]

If half of your vocabulary is UM ? Do not expect respect 😢

[@Socratic199]

(Gasp) No way anyone saw this coming, huh? Good excuse to convert them to residentials.

[@GBooth]

Which will also be unaffordable to the average buyer/renter and thus remain unoccupied.

[@3thinking]

AAA will get "some" money back This is fine 😆

[@dootdoot1867]

How many people like micheal burry shorted these triple A bonds is the question?

[@paulsaragosa371]

I'm not worth a penny a day

[@MrBiggerdaddio]

527 figuroa is a bank building, so most likely the bank is defaulting. gonna be a huge selloff after earnings

[@johnklaus9111]

The "gist" is that the auditors are liars and completely complicit in dishonest pricing of corporate bonds. As soon as the first payment was missed, auditors should have downgraded the debt. That it waited until a literal forced price reset due to mark to mark is criminal and those involved should be banned from performing financial transactions in every country on earth.

[@johnklaus9111]

That includes bloomberg and his BS company.

[@nicolelovesbiggie2269]

This information is critical and if you don’t look at the rolling of the eyes you can really learn. Let’s polish up the intern to be ready to give the next report before putting her back on a live production.

[@xcel5203]

As long as she's flashing that gorgeous smile nobody cares actually .

[@EthelbertCoyote]

All the builders built office space for margin and not housing stock, morale don't follow everyone else, when you see a big enough group investing in one place look carefully at the rest.

[@TexasRiverRat31254]

Please bring Carmen back whenever you'd like to reveal the truth about what's actually going on. I can take a lot of bad news from her without even getting upset! 🥰🤩 I'll show myself out now.....😂🤣

[@J03LM1]

Here we go again!!!

[@tomtommyl805]

a lot of banks hold these bonds. And I've been watching for the effects of companies reducing their footprint due to the work at home trend. I was waiting for this and While I held a stock in "brookline bank" I just thought it was risky since they also hold bonds and debt of buildings in boston. I didn't hold bonds but held the stock in the bank. It pays a good dividend thou.

[@ozlemelih]

Convert them to condos

[@magesalmanac6424]

Sounds easy but often the renovations are just to expensive. There are different building codes for residential. The plumbing rework alone is prohibitive.

[@paulsaragosa371]

Congratulations captain obviously the world s global entire world s bankruptcy

[@Most_Trustworthy_Weasel]

EXCUSE ME BUT HOW IS THIS NEWS!?!? GERALD CELENTE ONLY SAID THIS PRACTICALLY EVERY SHOW HE DOES SINCE LAST YEAR AND EVEN BEFORE!

[@rongermanjr]

like like like like like like how many times did she say 'like' in two minutes?

[@emilymccord7063]

I am from Miami United State🇺🇸, The difference Mrs Lucy Mary Liam makes in my life is second to none it's definitely a life changing kindness. I really appreciate her effort in my life.

[@joeclinton552]

I invested $2,000 and the trade in one month making close to $20,000. I wonder where she got her analysis.

[@jonaswinter614]

Seeing my broker talked on KZbin, This was exactly how I got the recommendation about her for the past years. Hit $200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with $20k in July 2024

[@carlosalberto54754]

I'm from Brazil 🇧🇷 I and two other of my friends tried her immediately we testified her performing wonders.

[@peteraaron6714]

Her good strategies of making large amount weekly profits for her clients are totally outstanding. Investing my $1500 with doubt and withdrawing $12,300 with happiness. I ❤️ you Lucy.Her good strategies of making large amount weekly profits for her clients are totally outstanding. Investing my $1500 with doubt and withdrawing $12,300 with happiness. I ❤️ you Lucy.

[@alexandrajuliette6899]

Thanks to my co_worker who suggested Mr Lucy Mary Liam to me

[@paulsaragosa371]

Brilliant mind

[@darrellklassen2559]

How did this valley virl get on a financial program ? Like every second word is like, oh my god, like I am sure.

[@skipmatsey8352]

Like wow. Like who’d have thought? 😂

[@JoseRodriguez-ti2ii]

60/40 portfolio's will be getting hit😂

[@7_of_9]

AAA bonds are D and F bonds mixed like a Mexican tortilla and sold as AAA bonds 😅😂😅

[@Speedo123100]

She dresses as a cat, when not at work.

[@hoonhwang4778]

Wonderful. Now Trump can live in his empty Trump tower all by himself like a king.😊

[@paulstilwell764]

“Some” of their money back….eheheheheh…2008 again folks!

[@gmil2573]

Let the deflation happen.

[@lucmarchand617]

The covid 19 change everything same in canada.Calgary alberta got same thing lots building in downtown sold now at lost yes.

[@siddhantdas33]

Help me understand this - leaving aside the large corporations that actually own and operate their buildings, other commercial real estate that is not seeing tenant demand, what's the cost of turning these primely located properties to housing? Surely there's a housing crisis where the housing market is overburdened by low inventory and high interest rates - and the prices are just shooting up. Can't these commercial properties that are not doing so well be converted to housing, then eventually clear the inventory and payback the bond holders? Or am I missing something? Why are owners selling and realising losses? Is the price to convert commercial to housing higher than realising losses on your property? Sure - can't be that bad, can it?

[@diegoaespitia]

commercial buildings cant easily be transformed into residential. because there are different regulations. transformation would call for huge reconstruction. probably not worth it

[@Wubby805]

Think of all the windows in a commercial building versus walls in a home/apartment, just that ratio should answer your question. Next consider the plumbing reconfiguration. Those two aspects alone no longer make the transition economically feasible. There's much more, but you get the point.

[@cautiousoptimist1926]

I remember seeing an interview with an architect who estimated that only about 30% of these buildings were candidates for conversion.

[@paulsaragosa371]

Shazam wowee Ohno Holly strawberries batman we are in a jam yah 3 it's not cho cheese okay ffelecia

[@benjaminthomas7865]

all my AAA bonds are insured. the premium on AAA is next to nothing so why not.

[@LincolnLog]

Did you read the fine print? I'll get that it says "based upon ability and availability of funds"

[@randyosborne3971]

Crony Congress will make their certain friends good.

[@lewisrashe831]

Todays super inflation turning AAA CMBS long term future cash flows into JUNK just like 17 year high inflation did in 2007 turning both CMBS and RMBS into JUNK debt all the way up to the AAA tranches. Is RMBS up next in that even AAA RMBS will be turned into JUNK paper by super inflation? We are about to find out if this time is different. At the end of the day severe inflation means the debt issuers can’t back up their long term promises by delivering sufficient present value to back up the long term credit and debt which is why inflation is high so now you need to discount the paper and re-rate it as JUNK.

[@Stromboli15]

It’s the “Big Short” 2.0…..sell…sell…sell..SELLLLLLL!!! 🫵😆💥👊🤣💥🫵🤡💯💩💩💩😘🤌

[@sebastieng-r9764]

its happening again

[@paulsaragosa371]

Congratulations captain obviously you are so Sherlock Holmes and Masses of i owe you money 💰

[@usptact]

lol of course you won’t be paid

[@billykotsos4642]

Womp womp. Close up offices and create more residential space were people can actually live in

[@estn1442]

AAA 😂😂😂

[@TommyChardonneret]

The away the filler word "like" as well as the constant up-speaking, and this Carmen Arroyo couldn't talk her way out of a Girl Scout cookie sale!

[@almasakchabarov3695]

Ms Arroyo so beautiful

[@GBooth]

That's why she got the job.

[@DC-ux1dt]

Learned nothing.... Disgusting.

[@AbAb-th5qe]

HAAA

[@jimsummers487]

Manhattan Jesus will save America with free money

[@ArthurDentZaphodBeeb]

Well, that was ridiculously uninformative.

[@NoPrivateProperty]

capitalism suckers! eat the rich

[@fredbobberts5753]

Complaint about Carmen’s speech really means to me “I don’t like what she’s reporting.”

[@GBooth]

Nonsense. Anyone who's watched this sector for more than a little while already knows this news. Carmen's just shockingly inarticulate, but that's another matter.

[@damonkatos4271]

Trump to the rescue, right?

[@tomb427]

Democrats lock down effects are real….

[@valderith]

I would not talk to this woman for financial advice, its like asking a rat for financial advice.

[@FINSuojeluskunta]

I just now noticed that women show their teeth more when speaking than men do

[@magesalmanac6424]

Umm did you also notice that for years, men rudely tell women to smile more? 😬

[@Asdasdssd]

Rating agencies working as intended 🤌👏

[@skywalker541]

AHAHAHAHAHAHAHAHAHA, HERE WE GO AGAIN!!!