commercial loan news

March 11, 2008

REITs Are Holding Up in the Credit Crunch

SOURCE: Seeking Alpha

REITs are relatively outperforming other major market benchmarks, says the National Association of Real Estate Investment Trusts (NAREIT) in its latest monthly update.

NAREIT also argues that REITs provide a comparatively attractive investment for those "looking for income with relatively low risk", particularly when taking into account leverage and yield spreads.

With the credit market being more challenging investors worry about companies being overleveraged, most REITs continue to be conservatively leveraged.

David Gaffen of WSJ.com's marketbeat blog "The creditworthiness of this debt is extremely strong," notes Guy Lebas, but of course, that doesn't matter in this environment.

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