Already have an account? log in
This article is FREE for you
Create a free account and join institutional investors, analysts and strategists from the world's largest banks
By submitting your email address you agree to receive communication by email
Weekly: Return Of The Roach Panic
This time last week, I conjured October's "roach" scare in the course of suggesting that unlike a pa
OR, subscribe now for unlimited access
By submitting your email address you agree to receive communication by email
By submitting your email address you agree to receive communication by email
I needed a good laugh about now and boy did you deliver. The leadoff hitter was “Wall Street’s a glorified racket that engages in habitual, greed-driven fuckery” and then it just got better.
I loved that line…something I learned ago cutting my teeth in the penny stock business before moving on to much more respectable and sophisticated arenas of “greed-driven fuckery”! Blinder Robinson, Wolf of Wall Street… Boesky, Milken… Enron & Worldcom seemed so quaint by the time 2008 came around! Lets just imagine the power of AI to drive the industry to ne heights (depths?)…
The CRE roach has been suspiciously quiet of late. Despite CMBS default rates rising and rising, and other indicators of not-wellness in CRE land, the “CRE” Q&A in bank earnings calls has dwindled. Had dwindled.
The CRE roach has been suspiciously quiet of late. Despite CMBS default rates rising and rising, and other indicators of not-wellness in CRE land, the “CRE” Q&A in bank earnings calls has dwindled. Had dwindled.
When I was fooling around with small bank stocks in 2008, I would go through the banks real estate owned that they were trying to sell and invariably the property loans were to developers and were being marketed for 25% of what the bank had loaned on the property so none of this is surprising.
Were this the 90’s a $3bn hole would have blown the books on dozens of firms and currencies. Now $3bn, if that’s where this ends, is a shrug. Average defaults in high yield credit is ~3%. I just read a BBG headline that said PE is facing a 15% default rate. Now THAT is hilarious.
Always perfect your collateral interest.
“Fraud’s a fact of life and a fact of lending. No matter how scrupulous you are, and no matter how rigorous your underwriting, you’ll get duped every now and again. Everybody plays the fool sometime.”
No no no. Not if you use AI!!!
Bravo, H., on th everybody plays the fool paragraph end – beginning…I keep wondering if there was “it may be factual it may be cruel” coming into the narrative…