Dubai-based developer Nakheel cut 500 jobs, or 15% of its work force. The government-owned developer also said it was cutting back work on projects. "We have the responsibility to adjust our short-term business plans to accommodate the current global environment," the company said in a statement.
With 80% of bonds from commercial mortgage-backed securities still rated triple A, many are trading at discounts that bump their yields into the range of 14% to 16% because investors are indiscriminately dumping anything related to real estate. Bonds of commercial mortgage-backed securities are typically structured to protect investors from all but the most colossal defaults.