Short Sellers Up Their Wagers Against Commercial Real Estate Again
- Sector seen as most likely source of a systemic credit event
- Investors yank money from property funds as values decline
Investors have been rattled in recent weeks by lenders setting aside larger provisions for property-loan losses.
Photographer: Eilon Paz/BloombergThis article is for subscribers only.
Pressure at regional banks, a continuing downturn in US office prices and elevated interest rates have money managers piling back into bearish wagers on one of their favorite sectors: commercial property.
Data center real estate investment trust Equinix Inc. slumped to the lowest since January on Wednesday after Hindenburg Research said it was betting against the firm’s shares, while S&P Global said earlier this month that REITs are the most shorted stocks globally.