Abstract
This study assesses the credit risk of Japan's real estate investment trusts (J-REITs) in two related markets during the fiscal years 2008–2017. The first J-REIT market involves blockholders, while the second is a lending market of institutions, i.e., banks and insurers. J-REITs are corporation type of closed-end funds listed on the stock exchange and thus, has corporate credit risk. Consequently, a J-REIT's financial variables and its sponsor have a substantial effect on the J-REIT's credit risk. A sponsor's probability of default is a leading indicator of the J-REIT's default and double default probability acts as a coincident indicator of default. Network analysis indicates that some network centralities are proxies for funding liquidity via blockholding and lending networks. Rather than increases in other centralities, an increase in the degree of lending to a J-REIT explains a decrease in the issued J-REIT's credit risk.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
