Sweden’s Big Short Signals Trouble for European Real Estate
- SBB is second-most shorted stock in Europe on debt concerns
- Falling property values, refinancing woes pose downgrade risk
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A Swedish landlord’s stock has fallen by three quarters this year and investors are betting the worst isn’t over.
SBB, as Samhallsbyggnadsbolaget i Norden AB is more commonly known, has become the second-most shorted stock in Europe, with bearish bets running at 35% of its free float, according to data compiled by S&P Global Market Intelligence. The scenario is based on concerns that SBB piled on too much debt in the boom years to create a portfolio of about 2,500 properties across the Nordic region.