Bargain Hunters Eye Distressed Real Estate Assets

The video discusses the current state of the mortgage market, highlighting potential opportunities and challenges. It covers the distress faced by mortgage trusts and REITs, the strategies of hedge funds looking to buy mortgage bond portfolios at a discount, and the role of deep-pocketed investors like Apollo and Oak Tree. The video also explores the difficulties in raising funds and the varying costs of capital among investors.

What challenge did mortgage trusts face recently?

• High interest rates

• Margin calls from banks

• Regulatory changes

• Lack of buyers

Why are mortgage rates in distress?

• They have secured rescue financing

• They are trading at a fraction of their book value

• They have low leverage

• They are trading above book value

What is a significant challenge for funds wanting to buy distressed mortgage rates?

• Regulatory hurdles

• High competition

• Lack of exit strategies

• Low returns

Which of the following is a player in the mortgage market looking for opportunities?

• Morgan Stanley

• Apollo

• Goldman Sachs

• BlackRock

What kind of returns are potential buyers expecting from the mortgage market?

• 30-40%

• 20-30%

• 10-15%

• 5-10%