In this episode, we examine the effects of rising interest rates on real estate operating companies and real estate investment trusts in two major regions – Europe and Asia-Pacific. In the former, higher rates have driven a deterioration in credit quality across the sector. And we expect commercial property values to decline in the coming months. On the other hand, business conditions are generally better in Asia-Pacific and valuations have held steady. At 11:50, we check in on the state of the market there, where China’s reopening is having positive spillover effects.   Guests: Oliver Schmitt, Vice President – Senior Credit Officer; Stephanie Lau, Vice President – Senior Credit Officer, Yu Sheng Tay, Analyst; all of the Corporate Finance Group at Moody’s Investors Service. Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service. To on this topic, visit the Behind the Bonds page on Moodys.com. (Some content available only to registered users or subscribers.) Related research: Real Estate – Europe: Corporate credit quality will deteriorate with rising rates, falling property valuesREITs & REOCs – Asia-Pacific: Modest earnings growth in 2023 will keep credit quality stableProperty – Hong Kong SAR, China: Full reopening of border is credit positive for Hong Kong property companies

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