Rod Dubitsky

ABOUT THE EPISODE

Rod Dubitsky, the People’s Economist, joins me for a deep dive on the complex world of commercial real estate. With over three decades of experience in financial services, Rod offers invaluable insights into the ongoing challenges faced by the industry and introduces his initiative aimed at democratizing personal finance tools, providing listeners with a comprehensive approach to managing their finances.

We navigate the murky waters of traditional balance sheet lenders versus the more speculative financialized sector, revealing a landscape fraught with “extend and pretend” practices and delayed foreclosures.

As we shift gears, we focus on the precarious state of the Commercial Real Estate Collateralized Loan Obligations (CRE CLO) market, where striking parallels to the 2007-2008 financial crisis emerge.

Shockingly, about 80% of these deals struggle with a debt service coverage ratio below one. This episode sheds light on the tactics CLO sponsors are employing to maintain the appearance of stability, and the potential repercussions on the broader financial ecosystem. The conversation reveals the unsettling reality of high loan modifications and redefaults, painting a vivid picture of a market on the brink.

Finally, we explore the broader trends impacting real estate, from demographic shifts to economic fundamentals. As we contemplate the sustainability of asset valuations amidst rising interest rates and climate change, the episode urges a return to economic basics. Join us as we emphasize the significance of informed investment and encourage ongoing dialogue on these critical issues.

Connect further with Rod Dubitsky at https://www.tpehub.com/ or LinkedIn.

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