US Property Fears Send German Lender Bonds Plunging
- PBB notes suffer record drop; Aareal, LBBW risky notes slump
- New York Community Bancorp woes rekindle real estate fears
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Losses in the commercial property market, which have already sent some banks in New York and Japan into a tailspin, moved to Europe’s biggest economy this week.
Bonds issued by real estate-focused German lenders slumped after Morgan Stanley analysts recommended clients sell senior bonds issued by Deutsche Pfandbriefbank AG because of its exposure to the CRE market in the US, according to people with knowledge of the matter who spoke on condition of anonymity.