European companies risk default

Bloomberg

Many companies may have to raise equity, sell properties or cut dividends if deflation takes hold, London-based analysts Harm Meijer and Osmaan Malik said in a note. The company covers 32 European real estate companies.

U.K. commercial real estate has slumped 28 percent in value since peaking in June 2007. Banks have made transactions harder and more expensive to finance and a recession has taken hold in Europe.

"Yields are set to move out much further and the number of solutions to deleverage are set to be increasingly limited," Meijer said in the note. "What counts is survival. Equity issuance is likely to come into focus, but companies cannot wait too long,"JPMorgan said.