Wall Street’s largest commercial real estate landlord, private equity firm Blackstone, has defaulted on a €531 million ($562 million) bond backed by a portfolio of offices and stores owned by Sponda Oy, a Finnish landlord it acquired in 2018.
While Blackstone had sought an extension from holders of the securitized notes to allow time to dispose of assets and repay the debt, the surge in market volatility triggered by the war in Ukraine and rising interest rates interrupted the sales process, and bondholders voted against a further extension.
Since the security has now matured and has not been repaid, loan servicer Mount Street has determined that an event of default has occurred, according to a statement Thursday. The loan will now be transferred to a special servicer.
“This debt relates to a small portion of the Sponda portfolio,” a Blackstone representative said in an emailed statement. “We are disappointed that the servicer has not advanced our proposal, which reflects our best efforts and we believe would deliver the best outcome for note holders. We continue to have full confidence in the core Sponda portfolio and its management team, whose priority remains delivering high-quality retail and office assets.”
Blackstone is understandably trying to minimize the news, yet the firm clearly continues to scramble to stabilize the bleeding in its massive real estate portfolio. On Wednesday it said that it had blocked investors from cashing out their investments at its $71 billion real estate income trust (BREIT), as the private equity firm continues to grapple with a flurry of redemption requests.
BREIT said it fulfilled redemption requests of $1.4 billion in February, which represents only 35% of the approximately $3.9 billion in total withdrawal requests for the month, the firm said in a letter to investors as Reuters first reported.
The United States Treasury had an auction today to sell Treasury Bills for a ten year period. The Bills were offering 4.005% interest . . . . . . . .
There were NO BIDS.
Nobody . . . on the entire planet . . . offered to buy any Treasury Bills.
Nobody wants U.S. Debt anymore.
This will not end well.
But it will end quickly; for us.
Via Greg Hunter’s USAWatchdog.com,
Legendary financial and geopolitical cycle analyst Martin Armstrong said at the end of last year the U.S. is being set up for a “nightmare fall.” Train derailments and political problems are spinning out of control, but the biggest threat is war.
Armstrong explains, “They want a war, but they also need it because the monetary system is collapsing… “
“You have had interest rates at negative since 2014. So, suddenly interest rates are rising. Any bond owned by any institution in Europe is a loser. They have lost so much money, it’s incredible. What happens? Nobody is interested in long term debt – period…
If you have interest rates rising, and rates are going to be going up because the Fed cannot stop this kind of inflation. Then, you got war.
You have untold billions of dollars being shipped into Ukraine which is absurd. This is what you have…
You also have to look at what Janet Yellen said, and she was concerned with the tons of new debt coming out. You are exceeding the balance sheets of the Primary Dealers. To be a Primary dealer you have to be able to guarantee you will be able to buy X amount of debt. If you can’t sell it, what happens? The bank is stuck with the debt, and then, they go bust. So, we have a real problem here. They cannot continue to issue this kind of debt in perpetuity.
They have been borrowing money since WWII with no intention of paying anything off… The Fed is independent, and they don’t want the long term debt. They have been moving towards the short end of the curve. How do you continue to fund a government if there are no buyers for the debt? This is on a global scale.”
So, war checks all the boxes? Armstrong says, “Absolutely…”
” They get to default on all this debt which is the real objective. That’s why (Klaus) Schwab is out there saying you’ll own nothing and be happy.
He’s trying to make it sound like they are doing this for you. We are going to default on all debt and relive you of all your debt.
This is because they are going to wipe out everything. Pension funds will be all gone. That’s why they are coming out with guaranteed basic income to replace your pension. They’ve got this all worked out. That’s what the end goal is here because they cannot continue to function this way. They cannot continue to borrow whatever they need with no intention of ever paying it back.”
Armstrong reveals why the 2024 elections may not happen. Can the Deep State commit enough voter fraud to keep Biden and the rest of the Neocons in power? Armstrong says most of what is happening today is the fault of the Neocons, and they have control of both parties. Armstrong points out Democrat Hillary Clinton paid for the phony Trump/Russia dossier, and Republican John McCain delivered it to the FBI. Armstrong calls it the “Uni-party,” and goes deep on the problems the Neocons are causing on purpose.
Armstrong also talks about the dollar, gold, civil unrest, tangible assets and the Ukraine war. Armstrong’s sources say the real number of casualties of Ukraine Army stands at a whopping 250,000 dead. Armstrong says Russia is NOT losing the war. It is winning.
There is much more in the 47-minute interview.
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