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@Fxhedgers
🚨 Is this the beginning of a repeat of Lehman Bros 2008?
UBS just halted withdrawals of a $469 million real estate fund and told investors they can’t have their money back for up to 3 years.
Why does this matter? Back in June of 2007, Bear Stearns did the same thing at two of their hedge funds. One year later, Lehman Brothers collapsed and the global financial crisis happened.
UBS looked at their real estate portfolio, realized the buildings are not worth what they paid for them and they cannot sell them without admitting HUGE losses.
Commercial real estate office vacancies are at record highs. Buildings are worth a fraction of what they were. Everyone has been trying to avoid marking their portfolios down to actual current value. But they cannot ignore it any longer.