Just as this latest move is not unknown for UBS since the acquisition of Credit Suisse, similar risk-reducing actions continue elsewhere in the CRE investment environment. Concerned investors look for redemptions to avoid further losses. Funds must sell off better properties at low prices to raise capital to enable the redemptions. Some, like Blackstone's BREIT, can face redemption waves because of popular concerns over competitors like Starwood's SREIT. Back in May 2024, investors in the AAA tranche of the $308 million debt backed by 1740 Broadway in midtown Manhattan only got 74% of their investment back after the loan sold at a steep discount. Creditors in the five lower groups were wiped out. It is "a really bad sign as to how deep the hole goes," Bloomberg wrote at the time. When everyone gets wiped out, including those holding the most highly-rated slice of debt, it's like a wall full of red flags, languidly stirred by an economic sirocco. Reportedly this was the first such event in the post-pandemic era, according to Barclays Plc. This raises the question of whether it's once again time for CRE loan rating skepticism since the last round during the Great Financial Crisis. Even the presumably most stable investments by the largest sophisticated investors aren't safe, and concentrations in worrisome product types can accelerate the process." https://lnkd.in/eSdhnybC