The following is a Guest Post:
Bio: Gloria Agnello is a financial author and has been contributing her articles to quality web sites. She generally covers various topics on personal finance.
The debt situation in America is a testy one, that's for sure. Since the recession, people of the country are facing many financial problems. Likewise: if you are having any kind of problem with debt, you can try to find out if debt consolidation is good for your personal situation and then you can also try investing with different investment standards. There are various kinds of investment standards out there for you to pick from. You need to be as picky as possible, though and you need to find out which is the best in today’s economy.
Debt investors are now turning to real estate:
As per a recent survey, at least 100 debt investors will be investing in real estate rather than investing with hedge funds, bank props or trading desks. This survey also shows that investors allocated 26% of the investments in real estate in the year 2010 and that many are planning to allocate 48% of the investments in real estate in this year. However, the distressed debt investors may have to adapt, according to the surging equity market, and a bubble in the high-yield markets of loans. Otherwise they may find themselves pushed lower through the capital structure in search of greater yields.
According to the debt investors, real estate investment offer greater opportunities. Almost 48% of the respondents to the survey also said that they believed that the first lien secured bank home loans would be the lowest attractive investment opportunity for 2011. This was followed by the second lien home loans (44%) and the asset backed securities (44%).
More than 50% of the respondents, when polled, showed that their belief was like the default rates on the commercial real estate. They would not be able to reach the peak until the second half of 2011. However, 16% of the respondents argued that the peak is not going to happen until the advent of the coming year, 2012. These ideas represent a considerable change in the situation from 2010, when the energy and the automotive sectors were amongst the top favorites at 37% and 29% respectively. But, as the energy prices are on the rise and as the automotive sector too is not in a good position, opportunities lay elsewhere. Thus, the real estate and the financial markets are gaining in their importance. Keep an eye out in the coming months to see what happens next.