Tuesday, July 20, 2010

Morgan Stanley, Lehman, and Real Estate Investing

The day before Morgan Stanley is set to report earnings, the WSJ runs a story about the investment bank's attempts to deal with the $46 billion disaster that is MSREF, its commercial property investment funds. MSREF never met a commercial real estate investment it didn't love during the boom and is now stuck with a host of turkeys in every corner of the world. What now? Should it sell the pile of ailing (yet diversified!) real estate investments? After all, both Citi and Bank of America have sold off significant real-estate investment fund businesses in the past month, to Apollo and Blackrock respectively. Also, ING is looking to do the same and MS really does just like to do what everyone else is doing, just later, and less profitably. Should it hold on and hope for the best? After all, the fund still earns management fees even when it does stuff like lose 75% of its investors' money. Maybe leak a story to the press, see if anyone out there has any better ideas?

Here's an idea: Maybe Lehman can buy it? After all, Lehman's bankruptcy has done nothing to slow down the frantic pace of activity at the real estate arm of the now-defunct investment bank. The WSJ reports that Lehman just took over Innkeepers, a REIT that owns more than 70 hotels. Well, this was less of a traditional takeover and more of a "you're wearing it" type of deal, as the hotel operator filed for bankruptcy and Lehman was its largest creditor. Lehman's debt in Innkeepers stems from its participation in the 2007 $1.5 billion buyout performed by none other than Apollo Investment, a subsidiary of the same folks that just bought Citi's real estate portfolio (see above.) Buy low AND high. I think that's called dollar cost averaging.

What should Morgan Stanley do? Tomorrow's earnings announcement will offer some clues as to whether the firm can finally return to its former glory as a premier investment bank, rather than a GS also-ran. If so, maybe MS has a shot at reaping a solid price for its ailing commercial real estate investment funds based on the prestige factor associated with its name. Because it's not going to get top dollar based on the fund's performance.

I'm predicting a lousy quarter for MS. They might even lose money. Why? Because all its competitors have had a lousy quarter and MS does exactly the same thing, except usually worse, even though the market seems to grant them some sort of a premium. How much longer can the premium prevail? Tune in tomorrow.


Anonymous said...

Good call.

Anonymous said...

I deposit $80,000 and Received $800,000 in one hour
We belong to The Gleen-Management Company. Our company established in January 2007. Now we have been on the online market.As you

sometimes know about trading currencies might be a difficult to earn from those markets. So we thought our offer shall help you to

easy going on the currency online-investment markets.
Don't be panic to invest with us because of we are professional investors who had many experiences in currencies markets. We

believe in a good management of our team and to bring you're going to your goals!
Investment offers: 3 products Investment Products Amounts(USD) Terms Profits
Junior 250 - 5,000 800% after 12 hours 800%
Senior 5,001 - 50,000 900% After 6 hours 900%
Retirement 50,001 - 250,000 1000% after 1 hour 1000%
Why many people would be one of our company?
1. We are professional investors.
2. 100% of funds get risky free.
3. Don't need to register. That can be safe from hacker.
4. Stable income.
5. Many Experiences in currency markets
I deposit $80,000 and Received $800,000 in one hour
Date : 2010-28-07 15:41:53
Batch : 420106XX
From/To Account : U3657601 (gleenmanagement)
Amount: $800,000.00
Memo: Gleenmanagement.com

If you deposit with my link,I guaranteed your money are 100% safe.

my referral link

You can find the site listed on

100% guaranteed paying No risk No lost.
If you deposit with My Referral link,I will return 20% of your deposit.
If you don't get paid from Gleenmanagement.com,please mailto: DElmoredbou@gmail.com
I will return 200% of your deposit.You have no risk! Because I trusted them , I made more than $7 millions profit in them.
So I can guaranteed. Never loss and No risk.

Anonymous said...

I Received another $2.8 Millions and $1500 Dollar From mesirowfinance.com
Mesirow Finance, Inc is a global investment management company, Developed for creation of a reliable investment program. One of such branches is the trade on global currency they business to analyze the incomes of the contributions and free of risk. We have consistently seen profits from the safest and most secure investments available with good profit. Mesirow Finance, Inc was established to provide a convenient and safe solution for investors wanting regular income from their investments.
Standard Plan 700% For 10 days .
Gold Plan 7000% after 5 days.
Principal Already Return in Profit.
3% Referral Commission System
Start From $500 and Maximum $500,000 Per Day.
Automatic Investment and Withdraw
We give you interest 7000% after 5 days includes your initial deposit for every deposit made.

You can check the payment proof on

Deposit in mesirowfinance.com

It is a great and paying hyip
More Hyips

Anonymous said...

Received $2.5Millions from Padhyip.com
PadHyip.com is a short-term global investments offerring company, just launched in March 2010. We offer two types of plans for you to choose: 3000%-9000% of your deposit after 24 hours or 2000%-6000% of your deposit after 12 hours ! Payouts are sent 7 days a week, even on weekends! You don't need to go to banks or financial institutions to purchase the plans, cause we enable you to purchase it via Liberty Reserve payment system, online and instantly!
The daily profit is solid, and paid to your Liberty Reserve accounts directly 7 days a week, even on weekends! All the payments due will be calculated and transfered to the LR account you deposit from, no withdrawal request required! And usually the payouts reach to your accounts within 24 hours, after your deposits are successfully made!
Together with us, you will find that earning money has never been so easy, because you need to do nothing but invest to our plans, and we do everything remained. Just try us! Check our offers and join!
I deposited $50,000 in padhyip.com and got paid $2.5millions after 12 hours.
That is great hyip . what can I say? see my proof
Payment Proof
Date: 2010-07-27 21:55:40
From/To Account : U5354564 (PadHyip)
Amount : 2,500,000.00
Currency : LRUSD
Batch: 419718xx
Memo : Padhyip.com

More Details

You can check the site paying or not

If you don't get paid from Padhyip.com,please mailto: Keenanused@gmail.com
I will return 200% of your deposit.You have no risk! Because I trusted them
So I can guaranteed. Never loss and No risk.

Hector said...

Investing in property is a long term achievement of wealth. Planning accordingly to achieve your goal may help you to become a great real estate investor. Using strategy is the main key to success in property investment.