This is what happens when "high-rated" investment grade companies approach the debt market without access to the TLGP or the discount window. As SPG is the highest rated REIT and has the largest market cap in the space, one can only imagine what kind of interest rates all the other, lesser-rated REITs will need to pony up when they start coming to market to refi all their impending maturities... Ain't gonna be pretty. Sphere: Related Content
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Every now and then we get a peek behind the Potemkin village that Bernanke and Co have set up, and it isn't pretty. It says a lot about how long it will take finance to recover and how sustainable any recovery will be when reality is priced 600BP or so above the "market".
Yes, that sort of interest rate for the best of class makes these times very frightening...looks sort of like a new wave of panic is rolling in...
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