Investors are liquidating holdings as fears about corporate and commercial property bubble set to bust as debt reached new heights in Europe

Commercial property ballon set to burst. Investors are liquidating holdings as fears about corporate and commercial property debt reached new heights in Europe, according to Financial Times on Saturday.
The markets were gripped by worries that economic weakness would affect corporate profits, leveraged buy-outs and commercial property, which is said to "represent an escalation of the crisis that began with concerns about U.S. sub-prime mortgages."
Mutual funds that invest in loans have been hit with redemptions, forcing them to dump some of their holdings, while hedge funds that bet on the likelihood of buy-out deals have also been among the casualties.
The turmoil has also put pressure on banks and other investors who are holding 200 billion U.S. dollars of leveraged loans that they had been hoping to sell, the report said.