How a Corner of the Bond Market Once Seen as Ultrasafe Came Unstuck
How a Corner of the Bond Market Once Seen as Ultrasafe Came Unstuck #
The number of “single-asset, single-borrower” (SASB) bonds in the market has reached [redacted]. SASB bonds were initially considered extremely safe. However, as the commercial real estate market has faced challenges, the default rate of these bonds has risen significantly. Over a span of two years, it has almost tripled, currently standing at [redacted]. This indicates the growing instability in the SASB bond market.
How a Corner of the Bond Market Once Seen as Ultrasafe Came Unstuck #
The number of “single-asset, single-borrower” (SASB) bonds in the market has reached a significant number. SASB bonds were initially considered extremely safe. However, as the commercial real estate market has faced challenges, the default rate of these bonds has risen significantly. Over a span of two years, it has almost tripled, currently standing at 8.7%. This indicates the growing instability in the SASB bond market.