Thread: Blackstone

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  1. #1
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    Blackstone

    Reached redemption limits on their primary REIT.
    Fund is $69B, at 5% withdrawal, they can do 8%.
    Thus they're leaving it open a bit longer for folks.

    Anyone willing to agree with me yet? Recession.
    If it's not handled correctly, it could get nasty.

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    #2
    Quote Originally Posted by TampaJim View Post
    Reached redemption limits on their primary REIT.
    Fund is $69B, at 5% withdrawal, they can do 8%.
    Thus they're leaving it open a bit longer for folks.

    Anyone willing to agree with me yet? Recession.
    If it's not handled correctly, it could get nasty.
    The one thing I will note though is that the investors in the BREIT fund and the investors in Starwood fund knew they could be gated because the assets are tied up in multifamily housing and other real estate assets that are not very liquid. I had an opportunity to invest in a private REIT before COVID and this was the one aspect that kept me from investing. Instead I opted for publicly traded REITS.

    I noticed over the past few weeks we have seen alot of orders coming in for multifamily property transactions. If these two players and countless other private REITS need to liquidate their multifamily holdings (which include many single family homes being rented) then it is going to result in fire sale prices.

  3. Stocks/Investments Moderator boneil's Avatar
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    #3
    263K jobs last month. Eventually there will be a recession. But I don't see it yet.
    Thanos was the hero

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    #4
    Quote Originally Posted by boneil View Post
    263K jobs last month. Eventually there will be a recession. But I don't see it yet.
    I think we start seeing the layoffs in the first quarter next year. Most companies are reluctant to layoff around the holidays unless they really have to.

  5. Stocks/Investments Moderator boneil's Avatar
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    #5
    Quote Originally Posted by NitroZ7 View Post
    I think we start seeing the layoffs in the first quarter next year. Most companies are reluctant to layoff around the holidays unless they really have to.

    They're deciding on the amount of layoffs at my wifes hospital group now. There's gonna be layoffs but isn't there still 10 million job openings? I have a hard time seeing a meaningful recession in the near term.
    Thanos was the hero

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    #6
    Quote Originally Posted by boneil View Post
    They're deciding on the amount of layoffs at my wifes hospital group now. There's gonna be layoffs but isn't there still 10 million job openings? I have a hard time seeing a meaningful recession in the near term.
    We are talking about layoffs as well. Those job openings may disappear or may be more geared towards lower paying jobs. If that is the case then many people may get jobs that pay much less than they were making before. I think the layoffs are going to hit the white collar area and they tend to spend more.

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    #7
    Already a recession ... our hurricane damage was $22k, the carrier paid us $2,600. Recession!!

  8. Stocks/Investments Moderator boneil's Avatar
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    #8
    Anybody catching the interview with Blackstone going on CNBC. I missed most of it, but I caught concerns about liquidity? Never good when there are questions about liquidity.
    Thanos was the hero

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    #9
    Quote Originally Posted by boneil View Post
    Anybody catching the interview with Blackstone going on CNBC. I missed most of it, but I caught concerns about liquidity? Never good when there are questions about liquidity.
    They're +5% now on REIT redemption, they can only manage ~8% before shutting it all down.
    It's coming. There's a reason institutional investors are neck deep in bonds. Hide your women.

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    #10
    Quote Originally Posted by boneil View Post
    Anybody catching the interview with Blackstone going on CNBC. I missed most of it, but I caught concerns about liquidity? Never good when there are questions about liquidity.
    Apparently alot of the redemption requests are coming from Asian investors. Someone mentioned that these investors may have been leveraged and need the money to cover margin calls. I do not know if that is true but that is what was said. The big issue with these is there is no way to to know the NAV of the fund since the shares are not regularly traded. Blackstone essentially has an appraiser that goes out and values the properties they hold to give the value of the holdings. They say their properties are up 10% on the year but other REITS in the apartment are down 30% so people are obviously questioning their valuation.
    Last edited by NitroZ7; 12-08-2022 at 10:13 AM.

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    #11
    The technical term for a recession is two negative quarters back to back. Already had that. You can spin it however you want but the recession is already here and has been for a while. The only question is is it going to improve or get worse.

  12. Stocks/Investments Moderator boneil's Avatar
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    #12
    Quote Originally Posted by g2072 View Post
    The technical term for a recession is two negative quarters back to back. Already had that. You can spin it however you want but the recession is already here and has been for a while. The only question is is it going to improve or get worse.

    But now we are positive again, so does that mean the recession is over?

    Call it what you want. Jobs are still growing and wages are still growing.
    Thanos was the hero

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    #13
    Quote Originally Posted by boneil View Post
    But now we are positive again, so does that mean the recession is over?

    Call it what you want. Jobs are still growing and wages are still growing.
    Seasonal

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    #14
    Quote Originally Posted by boneil View Post
    But now we are positive again, so does that mean the recession is over?

    Call it what you want. Jobs are still growing and wages are still growing.

    When the numbers are in and adjusted as long as they aren't negative then yes, that one is over. Now, who knows what the future holds but for decades the definition of a recession was two negative quarters in a row. I guess you could have two negative quarters then follow it with a positive ending the recession only to have two more negative's putting the country back into recession.

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    #15
    Quote Originally Posted by boneil View Post
    But now we are positive again, so does that mean the recession is over?

    Call it what you want. Jobs are still growing and wages are still growing.
    positive only because everything costs more..