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Recent Editions
Risk Channel
North America
Rapidly rising interest rates are disrupting U.S. commercial real-estate transactions as buyers demand price reductions or other concessions on deals agreed when financing was cheaper. The long gap between signing and closing means higher borrowing costs can materially change projected returns, prompting more “retrades” and occasional lender withdrawals. Cushman & Wakefield’s Jeff Powers said, “Rates went up... and I’m already getting calls where they’re talking retrade.” The strain is also weighing on property values, refinancing and development economics, with 11.42% of commercial mortgage-backed securities loans in special servicing in August, the highest rate since February 2013. Some buyers have successfully negotiated discounts, although lenders and investment funds still have substantial capital available for stronger projects. Market participants say financing remains accessible, but higher rates are increasing pricing, lowering valuations and creating substantially more friction around closing transactions.
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Risk Channel
UK/Europe
Asos is investigating unauthorised activity involving third-party platforms after hackers hijacked its app notification system and sent alerts directly to customers, claiming to have compromised the retailer’s Snowflake data storage environment. Asos said basic personal information, including names and contact details, may have been accessed, although it does not believe payment-card details or passwords were affected. Snowflake said it had found no evidence that its platform was compromised. Customers were warned to disregard the notification and avoid its external link. Shares in Asos fell by as much as 14% following the incident. Cybersecurity experts described the tactic as highly unusual because the attackers used the retailer’s own communication system to publicise their claims and apply pressure. Marijus Briedis of NordVPN called it “an unusually brazen and threatening message”. The incident comes as Asos continues a wider business turnaround amid strong competition, debt pressures and constrained consumer demand.
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