By the awesome allstarcharts.com comparing the 10y US yield to the regional banks / REITs ratio:
Are we seeing a short-term peak in yields? Or is it just another breakdown of previous correlations?
A recent article by Green Street Advisors has a good point about offices in general while providing a picture of the valuation of the office segment:
And a Bloomberg chart about the performance of the Bloomberg Office Property Index in the last 12 months as of the close of 10/25:
The index is at a critical point, attacking the green resistance line. As the office sector is a quite big component of REIT ETFs and Indexes, a break above this trendline could be a game changer.
After yesterday’s carnage, a long-term view of the housing and real estate industry:
And the US stock market:
Bloomberg reports that shorting the CDS index composed mostly of retail mortgages has posted a +8% gain this year, causing pain for hedge funds who took the short side of the trade. These indexes have been rising together with the SPDR S&P Retail ETF (XRT), which is at an important support level:
These hedge funds would love to see XRT broke this trendline, taking the two CDS indexes with it.
Disclosure: We don’t have any positions in XRT.