How to strike the right balance in high yield bonds
Strong 2016 performance and a sharp rally in credit spreads have prompted some investors to take a cautious view of high yield bonds.
WeWork Cos., the startup that caters to entrepreneurs and small companies looking for communal office space and short-term commitments, is launching a new business that will put it into direct competition with the established giants in the commercial real-estate services industry, according to the Wall Street Journal.
As a pioneer of the “co-working” office-space trend popular in the technology and startup worlds, WeWork wants to take over the design, development and management of major facilities for some of the world’s top companies. Its executives say they can do this at lower cost and with better workplace results than traditional real-estate firms.
Valued at about $17 billion and with more than 135 locations in 14 countries, WeWork is offering to create personalized centers for big companies that employ hundreds or even thousands of workers. Many of these centers will resemble WeWork facilities, which use food, beverages, events, games and new concepts in design to encourage interaction and creativity.
“We’re trying to be entirely different: It’s the hospitality, it’s the amenities, it’s the data and the analysis and truly understanding how you’re leveraging your real estate,” said David Fano, WeWork’s chief product officer.
Analysts say it will take a few years to determine how much of a threat WeWork poses to traditional real-estate companies. However, executives at those companies don’t think WeWork is a big threat, partly because they offer a wider range of designs and workplace concepts than WeWork does.
“One vibe doesn’t fit all,” said Laura Whelan, senior managing director at Savills Studley, a real-estate services firm. (Source: Wall Street Journal)
Articles are chosen for summary in this Market Intelligence blog based on newsworthiness in conjunction with The Infinite Loop themes. Any opinions and views expressed in the articles are generally those of the underlying author from the source listed, are not necessarily current as of the date of this blog, may change as market or other conditions change, and may differ from views expressed by Ivy Investment Management Company and its associates or affiliates. Actual investments or investment decisions made by Ivy Investment Management Company and its affiliates will not necessarily reflect the views expressed in the articles. These articles are distributed for educational purposes only and are not investment advice or a recommendation to purchase, sell or hold any specific security mentioned in the article or to engage in any investment strategy. Investment decisions should always be made based on each investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Securities discussed may not be suitable for all investors.