Morgan Stanley’s Commercial Real Estate Portfolio Is The Worst On The Street
Author: admin / Category: US Economy, US Real EstateHow large is Morgan Stanley’s exposure to commercial real estate? It’s very difficult to tell, actually.
As we learned during the horrors of 2008, there are so many ways for banks to hide their exposure to certain asset classes. In fact, many banks were so good at concealing their exposure that their own management had no idea what they owned.
This morning’s Wall Street Journal notes that Morgan Stanley has about $18 billion in exposure in just one unit–the institutional securities unit–to commercial real estate. Some of that might be hedged, although until we know how Morgan Stanley is hedging these risks that’s no much to go on. The days have long since passed when banks could simply announce a position was “hedged” or “hedged with CDS” and expect investors to feel reassured.
via Morgan Stanley’s Commercial Real Estate Portfolio Is The Worst On The Street.
