A hawkish Federal Reserve is
narrowing the window on trades that some U.S. regional banks
have been hoping to use to reduce their commercial real estate
exposure, investors, analysts and lawyers.
A hawkish Federal Reserve is narrowing the window on trades that some U.S. regional banks have been hoping to use to reduce their commercial real estate exposure, investors, analysts and lawyers said. Banks, particularly small regional and community banks, have looked to trim their outsized exposure to CRE on rising default risks after a post-pandemic social behavior change led to an increase in office vacancies and sharp drop in property valuations. Since the bank collapses last March, some regional lenders have sold billions of dollars of loans to private investors to reduce risk and shore up liquidity.
Matt Bisanz interviews Mickey Shemi, North America Structured Credit Head at Guy Carpenter, to discuss credit risk transfer trends with the Federal Housing Finance Agency and in the banking and insurance sectors.
Analysis-Wall Street Explores Novel Ways to Repackage Bank Loan Risk usnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from usnews.com Daily Mail and Mail on Sunday newspapers.
A financial product
that enables banks to shed risk from loan portfolios is gaining
more popularity among lenders in the United States, with
investors and lawyers devising new structures to broaden.