An ultra-safe corner of the commercial real estate debt market is seeing losses as the sector struggles

Debt holders on one AAA-rated Manhattan building lost over 25% on their original investment, the first loss of its kind since the Great Financial Crisis, Bloomberg reported.

Marianne Ayala/Insider

• Commercial real estate pain is sparking defaults in bonds backed by loans on high-quality properties.
• Single-asset, single-borrower CMBS are typically seen as safe havens by bond investors. 
• The recent stress is a sign of deep pain in the sector as values wobble and loans reach maturity.