What I’m Reading
In the Blocks: Conditions are perfect for distressed debt funds – which usually perform well during certain economic conditions, including when monetary conditions have been dramatically eased and when high-yield debt issuance is high. This according to a report on crisis-era distressed debt returns by Julian Falcioni at Preqin. Unsurprisingly, distressed debt funds are raising a record amount of capital this year. Globe Street
Get Low: Low-rise office buildings have typically been considered inferior to class-A skyscrapers. However, their ability to house an entire large company on one floor has made them more desirable during the pandemic – one of the few bright spots in the office market. New York Times
Busted: Wells Fargo fired more than 100 workers who improperly obtained COVID relief funds that were meant for small businesses by making false representations. Wells has become the Scooby Doo villain of banking. Bloomberg
Monotony: Work from home was supposed to be a panacea for employee flexibility. Instead, it often ends up eroding work life balance and leading to more stress. Substack
Stuck in the Middle: Smaller apartment landlords are stuck between tenants, who aren’t paying and can be evicted, and lenders who are still demanding mortgage payments. Associated Press
Hard Sell: Despite the strength in the for sale housing market, it is very difficult to sell units in urban condo towers right now. Crain’s Chicago
Chart of the Day
Mortgages may be cheap but credit has tightened a ton.
At the same time, affordability has decreased substantially thanks to housing price inflation.
Source: Quill Intelligence
WTF
He’s Baaaack: A man flying in a jetpack has been spotted by airline crews flying into LAX again. No word on Elon Musk’s whereabouts during the sighting. MSN
Oops: Two thieves who broke into convenience stores to steal lottery tickets and cigarettes were busted when one of the men left his wallet, which contained his drivers license behind because Florida. 12 News
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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