News

Landmark Links March 26th – Jumbo Headache

Must Read: After the Great Recession, many banks focused on jumbo mortgages – loans too large to be bought by Freddie and Fannie.  However, a combination of unfavorable tax policy, higher mortgage rates and slowing price gains and a generally-softening high end market are leading to dropping origination volumes and headwinds to the bottom line.

Economy

Not Budging: It seems as if nothing can nudge long-dated US Treasuries higher these days.  See Also: A substantial portion of the yield curve is now inverted. But See: The danger in misreading the inversion of the yield curve.

Meh: The Chicago Fed National Activity Index for February showed sluggish growth.

Commercial

Today I Learned: Private prison REITs are actually a real thing.  Perhaps I’m behind the times on this but I honestly had no idea.

Growing Concern: Some building owners are growing skeptical of WeWork as a viable tenant.

Residential

Imbalance: California has plenty of good jobs but not nearly enough units to house workers in and its only getting worse.

In the Crosshairs: The lawyers who took on big tobacco and won are taking aim at realtors and their 6% feesSee Also: What do you really get for 6%?

Can’t Catch A Bid: Demographics and changing preferences have resulted in a glut of Baby Boomer McMansions in sunbelt states that no one seems to want.  But See: New research shows that housing is a better investment than previously believed due to returns from imputed rents.

Profiles

Irony: The increasingly familiar trend of streaming service providers becoming content creators likely means that the future of internet-based TV looks quite a bit like the cable bundle that it supposedly replaced.

All In: Calpers is doubling down on private equity in an effort to make better returns.  But See: The market doesn’t provide high returns just because you need them.

Fraud of the Year: A man stole $122 million from Facebook and Google by sending them random fake invoices, which the companies dutifully paid.

Lonely: How human contact became a luxury good in the age of smart phones.

Chart of the Day

The 10-year – 3-month and the 10-year – 1-year Treasury spreads went into negative territory (inverted yield curve), which has been a fairly reliable predictor of US recessions over the years.

Source: @charliebilello

WTF

Gotta Hear Both Sides: A pantless knife-wielding man who set his SUV on fire in front of a New York police station and was shot by responding cops was charged with arson, menacing a police officer, reckless endangerment and criminal possession of a weapon.

The Plague: Poisonous toads are invading a neighborhood to the point that people can barely walk on sidewalks because Florida.

Carry On: A man attempted to smuggle an orangutan out of Indonesia in his luggage because Russia.

Landmark Links – A candid look at the economy, real estate, and other things sometimes related.

Visit us at Landmarkcapitaladvisors.com