Sharks Circling

Wesley Edens’s Fortress Investment Group picked up a mortgage bond portfolio for a steal
Credit: Drew Angerer/Getty Images, iStock

Blood is in the water and everyone knows it. With mortgage lenders under pressure as homeowners miss payments, you better believe the sharks are circling. Some Real Estate Investment Trusts (REITs) have alarm bells ringing "SELL" so loud that certain funds are lining up to get in on some discounted action. Some hedge funds and private equity firms are seeking returns of 20 percent to 30 percent in their negotiations with REITs, an indication of just how vulnerable they see the latter to be.

“Our thoughts and prayers are with all of our fellow Americans and nobody wants to capitalize on anybody’s misfortune,” said Meridian Capital Group’s David Schechtman. “But I will tell you, real-estate investors — when you take the emotion out of it — many of them have been waiting for this for a decade.” [WSJ] — Kevin Sun

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