The Credit Edge by Bloomberg IntelligenceThe Credit Edge by Bloomberg Intelligence

Fortress Sees $1 Trillion Real-Estate Debt Opportunity

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Buyers of distressed real estate debt stand to make significant gains over the next few years, according to Joshua Pack, co-CEO at Fortress Investment Group. “This is going to be a trillion-dollar opportunity,” he said. Pack discusses how Fortress is getting ready for “a massive restructuring” in the sector with Bloomberg News’ Lisa Lee and James Crombie and Bloomberg Intelligence’s Tolu Alamutu in the latest Credit Edge podcast. The impact on banks will be long-lasting and not limited to smaller financial institutions, says Pack, who predicts more consolidation and liquidation. Also in this episode, Alamutu analyzes the real estate stress spreading through Europe that’s hurting banks, insurers and asset managers. Germany and Sweden are areas of concern, while Signa’s insolvency adds Austria to the list of hot spots, Alamutu says. 

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