Blackstone REAL limited withdrawal of funds
2022.12.02 13:33
Blackstone REAL limited withdrawal of funds
Budrigannews.com – “While the increase in purchase requests last week on the (NYSE) Blackstone list did not have a significant impact, many people consider this a warning sign for the Real Estate Income Fund REIT.” A source close to the Fund said that Blackstone on Thursday limited payments from its REIT list by 69 billions of dollars, as requests for payments exceeded the limits set in advance for repayment.
This has caused investors to worry that the fund is quickly adjusting estimates due to an increase in the interest rate. This event is another reminder of the risks facing not only the industries affected by the interest rate rise, but also the broader financial markets, which have grown sharply in the hope of slowing the rate of interest rate growth. “We need to be careful – the rate has risen sharply and this will have negative consequences for certain categories of assets,” said Sim Shah, chief strategist of the $500 billion Global Investment Group, about the potential pitfalls that lie ahead.
She said that REITs have had fantastic results for several months, but on traditional fundamental signals, for example, rate hikes, in the presence of such indicators, investors do not react to the traditional fundamental signal, for example, rate hikes.” As part of the monetary policy strengthening cycle, all major developed economic countries have raised the rate by 2,440 basis points today.
Japan is not included in the number because it kept the rate at 0.1. In an attempt to combat the crisis, the US Federal Reserve this year raised the rate of the accounting system by 375 basis points to 3.75 to 4.0 during the fastest rate hike cycle since 1980. However, investors expect to lower peak interest rates due to rising expectations that the Fed will “turn around” from aggressive tightening in the coming weeks.
As a result, the yield of the ten-year treasury bond experienced the sharpest monthly decline since the beginning of the coronavirus pandemic in 2020. US stock markets rose in combination with public markets, increasing more than 15 since the beginning of October by 15 percent. “Such events are small signal poles for the consequences of a gradual increase in rates,” Shah said. “As long as you have complacency, and there is some complacency that the Fed can provide soft landings, then it can lead to some pain.” Real estate and the real estate market, investors believe, will continue to decline.
Chris Taylor, executive director of the real estate “Fedrated Hermes” (NYSE:) stated: “This is what many retail investors, investors with an established risk, prefer to reduce their shares in real estate in the whole direction, where they can, as a rule, with a direct valuation of real estate, as well as with the normalization of rates.” This year, the market has received its share of warnings from bets that were made during the era of rate cuts, but there are even more serious warnings.
It is important to note that the impact of the Bank of Great Britain caused a mini-budget of unsecured tax cuts in September, which led to a fall in the British bond market, because the pension fund was faced with a huge demand to provide an interest rate hedge that had never experienced sharp changes in rates.
Kaspar Hance, portfolio manager at Blue Bay Asset Management, which manages more than $92 billion in assets, said the REIT news is an example of the risk that private markets face in high-stakes markets. In addition, the mini-budget in a short time led to an increase in Bank of England rates, which led to the fact that British retailers have fallen by 17 since 2012, which was the lowest level in 2012.
Hens stated: “Investing in a sufficiently illiquid asset can become a difficult task when profitability increases, only to get a fairly small income in illiquid markets, which will suffer greatly when profitability increases.” This is due to the fact that illiquid markets suffer greatly if their profitability increases. “This is, of course, what we are seeing here, and we really want it to happen again in the next six to ten years, because yields are increasing, and the rates of national banks are maintained.
This will affect the loss of investors and their own capital,” Hens added. Although the publicly traded Dow Joyce U.S. Select Reit total return index declined 22 percent during the same period, Blackstone posted a net REIT return of 9.3 percent this year. A representative of Blackstone will not talk about how the New York company evaluates its REIT.
However, the representative stated that the company’s portfolio mainly includes rental housing and logistics in the southern and western parts of the United States, where short-term rentals and rental rates that exceed inflation.
One of the reasons for concern is that there are significant differences in the valuation of a public asset and a private asset, which are usually not valued, given the changes in the public market.
Now it may turn out to be even riskier for those who invest in the private market, as well as risky assets trying to increase profitability during a period of low rates and easy money.
“Some asset managers have suggested offering relatively moderate products investing relatively moderate assets for a long period is very expensive and quite liquid. These goods are operating in a world where unstable liquidity exists,” said an adviser to Allianz: Mohammed El-Erian on Twitter.
