KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Blackstone Inc. is issuing $1.05 billion in commercial mortgage-backed securities (CMBS) to help finance its April acquisition of AIR Communities, a major apartment landlord. The debt issuance includes six tranches of securities with ratings from AAA to BB-, backed by an interest-only loan at a floating rate.
Key Takeaways:
Supporting a $10 Billion Acquisition: The bond sale is part of Blackstone's broader financing strategy for its $10 billion purchase of Apartment Income REIT (AIR Communities). The acquisition deal, announced in April, includes a commitment from Blackstone to invest over $400 million to enhance and maintain the portfolio of apartment properties under AIR Communities.
Recent Trends in CMBS Issuance: The $1.05 billion in bonds adds to an earlier $2.95 billion CMBS sale in July, also backed by AIR Communities assets. The issuance comes amid a strong market for CMBS, with total sales reaching $69.7 billion this year. Despite spreads being wider than at the start of the year, they remain below levels from much of last year when there were significant concerns about the credit quality of commercial real estate.
Strategic Financing Amid Market Conditions: Blackstone's move to tap the CMBS market reflects its strategy to leverage diverse financing sources to support its acquisitions and investments. While market conditions remain volatile, with mixed sentiment around commercial real estate credit, Blackstone's ability to access the CMBS market at competitive rates highlights its strong positioning and market confidence in its investment approach.
By using these bond sales, Blackstone aims to efficiently fund its acquisition while managing its exposure to interest rate fluctuations through a floating-rate loan structure.
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