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re: Commercial-Property Loans Coming Due in US Jump to $929 Billion

Posted on 2/14/24 at 3:32 pm to
Posted by snakanator
Member since Sep 2010
634 posts
Posted on 2/14/24 at 3:32 pm to
There is a ton of capital willing to buy those loans at a discount. Banks are already increasing reserves to eat the loses, some will fail. The extend and pretend days are numbered. Sponsor/LP equity will get wiped out and the cycle will start again.
Posted by teke184
Zachary, LA
Member since Jan 2007
96421 posts
Posted on 2/14/24 at 3:34 pm to
quote:

Banks are already increasing reserves to eat the loses, some will fail.


Based on what was published some time back, I think the likelihood is that the four biggest banks keep getting larger while the rest either merge with them or go bust.


IIRC, this was when JP Morgan was poaching depositors from certain banks which, when they moved, blew out those banks’ ability to do anything due to required percentages.
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