The San Diego Union Tribune - "County faces glut of office space" (1-4-08)

"The county posted an overall office vacancy rate of 14 percent in the fourth quarter, according to a report by the CB Richard Ellis brokerage firm. That's up from 10.4 percent in January 2007. "

Bloomberg - "Credit Derivatives Head for Worst Week in More Than Two Months " (1-4-08)

"The risk of companies defaulting rose the most in more than two months this week after U.S. reports showing a slowdown in jobs growth and manufacturing stoked concern that the economy will sink into a recession. Credit-default swaps tied to the bonds of mortgage lender Countrywide Financial Corp., homebuilder Lennar Corp. and Citigroup Inc., the biggest U.S. bank by assets, increased. Defaults may rise almost seven-fold to 2.25 percent this year, analysts at New York-based JPMorgan Chase & Co., the biggest underwriter of high-yield, high-risk corporate bonds last year, said in a report yesterday."

Bloomberg - "Loan Funds Were 2007's Worst Performers on Subprime" (1-4-08)

"Mutual funds that buy bank loans turned in the smallest gains of any fixed-income group in 2007 after subprime-mortgage losses scared off high-yield debt investors. Loan funds managed by firms including Eaton Vance Corp. and Hartford Investment Management Co. returned 1.1 percent last year, according to data from Chicago-based Morningstar Inc. U.S. Treasury funds that protect against inflation rose 10 percent, the most in Morningstar's fixed-income group. "

Bloomberg - "California Leads Borrowing Cost Rise on Housing Slump" (1-4-08)

"From Sacramento and Albany to Boston and Tallahassee, politicians in state capitals across the U.S. are wrestling with the biggest increase in borrowing costs in three years as they struggle to shore up budget deficits widening on the national housing slump. The extra yield investors require on 10-year bonds from California, Florida, Massachusetts and New York relative to benchmark tax-exempt rates doubled since July to the widest since at least 2004, according to data compiled by Bloomberg. California's gap grew to 0.44 percentage point from 0.20 percentage point, adding $24 million in extra interest over 10 years for every $1 billion borrowed."

Real Estate Journal - "Owning vs. Renting:Still Not Close" (1-4-08)

"U.S. house prices 'likely would have to fall considerably' to return to a normal relationship with rents, says a study by one former and two current Federal Reserve economists. The study, which doesn't necessarily reflect the views of Fed policy makers, suggests prices would have to fall 15% over five years, assuming rents rose 4% a year. House prices would have to fall further if the adjustment took place more quickly."

Real Estate Journal - "Some Home Fix-Up TasksAre Worth Skipping" (1-4-08)

"If your New Year's resolution is to sell a home in 2008, it's probably time to start thinking about how to make that home stand out from the rest. But before planning any projects, beware: Homeowners aren't recouping as many improvement costs as they could in recent years, according to a recent study by Remodeling magazine. In fact, real-estate agents advise clients not to overdo it, regardless of what the local market conditions are like."