Live Markets: Europe's real estate is no longer the most crowded short but...

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14/02/2024 11:29

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        EUROPE'S REAL ESTATE IS NO LONGER THE MOST CROWDED SHORT BUT...
    UBS crowding data has some positive news for European real estate, which, back in 2023, was
a hot-spot for short sellers seeking to profit from the sector's troubles.
    The encouraging development is that the space is no longer the most crowded short across the
Swiss bank's coverage, in anticipation of rate cuts this year. However, delays to rate cut
expectations have led bearish bets to pick up this month.
    "Short interest on European real estate had consistently reduced since it had reached a high
in April 2023. As of Feb 2024, the trend in decreasing short interest has stopped," write UBS
analysts Charles Boissier and Wan Zhang. 
    "Short interest is rising again as central banks continue to push back on the timing of
their first cut and concerns on CRE’s contagion risk resurface," they add.
    UBS has found that UK Real Estate is "slightly positively" crowded. That is due to long-side
generalist investors attracted by "structural stories" such as logistics and student housing.
    Continental Europe, where leverage is higher, features the most heavily shorted names,
especially in Sweden and Germany. 
    SBB  SBBb.ST  remains the most shorted, per UBS, followed by other Stockholm-listed names
like Balder  BALDb.ST  and Wallenstam  WALLb.ST , along with Frankfurt's Aroundtown  AT1.DE . On
the crowded long side are British Land  BLND.L  and Segro  SGRO.L  in London.
    (Danilo Masoni)
    *****

     
    FOR WEDNESDAY'S OTHER LIVE MARKETS POSTS:
    RISKS OF A DEFLATIONARY SPIRAL IN CHINA CLICK HERE
    A CHINA REBOUND COULD DISRUPT THE DOLLAR'S STRENGTH - HSBC CLICK HERE
    STOXX EDGES UP, EARNINGS IN FOCUS CLICK HERE
    EUROPE SEEN STEADYING AFTER SELLOFF; UK CPI HELPS CLICK HERE
    RATE CUT RETHINK RIPPLES ACROSS MARKETS CLICK HERE 

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