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CRE
Reggie Middleton's picture

The European Banking Crisis is Here!





If it looks like a crash, smells like a crash, acts like a crash, is it a recovery? Here's the hard hitting evidence that you just won't find anywhere else. Just don't shoot the messenger! BoomBustBlog style research is back with a vengence.

 
Tyler Durden's picture

How This Default Cycle Is Different: Record Low Recovery Rates





Once the current short squeeze is over, expect everyone to start paying far more attention to recovery rates and the true value of "fundamentals." Here's why.

 
Tyler Durden's picture

S&P Downgrades Banks With Highest Energy Exposure; Expects "Sharp Increase" In Non-Performing Assets





Moments ago S&P continued its downgrade cycle, this time taking the axe to the regional banks with the highest energy exposure due to "expectations for higher loan losses." Specifically, its lowered its long-term issuer credit ratings on four U.S. regional banks by one notch: BOK Financial Corp., Comerica Inc., Cullen/Frost  Bankers Inc., and Texas Capital Bancshares. The  outlooks on these banks are negative.

 
Tyler Durden's picture

What's The Next 'Energy' Sector In Credit Markets? UBS Answers





While there may not be another 'energy' sector this cycle, our proverbial list of candidates includes lower quality high yield (ex-commodities) and commercial real estate (CRE). More broadly, the OCC's own examiners would also likely add asset-backed and auto loans to the list.

 
Tyler Durden's picture

How The Chinese Will Establish A New Financial Order





For many years now, it’s been clear that China would soon be pull­ing the strings in the U.S. financial system. In 2015, the American people owe the Chinese government nearly $1.5 trillion. Of course, the Chinese aren’t stupid. They realize we are both trapped.China has recently put into place a covert plan to get back as much of its money as possible - by extracting colossal sums from both the United States government and ordinary citizens, like you and me.

 
Tyler Durden's picture

3 Things - High Yield Warning, Yellen's Employment & Economy





While the economy is showing some signs of impact from falling oil prices, a port strike in California, weak global demand for exports and an exceptionally cold winter; the markets are pushing all-time highs. There is much hype being placed on the ECB's plans for launching QE in March, however, much remains to be seen as to just how effective it will be in a negative interest rate/deflationary enviroment. But then again...there is always "hope."

 
Tyler Durden's picture

Irrational Exuberance 3.0: Fed Again Warns Of A Build Up In "Valuation Pressures"





"The staff report noted valuation pressures in some asset markets. Such pressures were most notable in corporate debt markets, despite some easing in recent months. In addition, valuation pressures appear to be building in the CRE sector, as indicated by rising prices and the easing in lending standards on CRE loans. Finally, the increased role of bond and loan mutual funds, in conjunction with other factors, may have increased the risk that liquidity pressures could emerge in related markets if investor appetite for such assets wanes. The effects on the largest banking firms of the sharp decline in oil prices and developments in foreign exchange markets appeared limited, although other institutions with more concentrated exposures could face strains if oil prices remain at current levels for a prolonged period."

 
Reggie Middleton's picture

Toil, Trouble, Crash and Bubble! Monetizing The Biggest Crash of the Millenium?





In December I proclaimed that we'll likely see multiple crashes for 2015. I don't say this lightly & I have a track record on this topic that's foolish to ignore!

 
Tyler Durden's picture

Fed Hints It Won't Bail Out Stocks Next Time





"... members considered the advantages and disadvantages of adding language to the statement to acknowledge recent developments in financial markets. On the one hand, including a reference would show that the Committee was monitoring financial developments while also providing an opportunity to note that financial conditions remained highly supportive of growth. On the other hand, including a reference risked the possibility of suggesting greater concern on the part of the Committee than was actually the case, perhaps leading to the misimpression that monetary policy was likely to respond to increases in volatility."

 
Tyler Durden's picture

The Ten Plagues That Are Hitting America Right Now





Why are so many plagues hitting the United States all of a sudden? Yes, one can always point out bad stuff that is happening somewhere in the country, but right now we are facing a nightmarish combination of crippling drought, devastating wildfires, disastrous viruses, dying crops and superbugs that scientists don’t know how to kill.

 
Cognitive Dissonance's picture

Enlightened Self Interest and Financial Industry Hypocrisy - Chapter One of Three





The level of governmental and corporate corruption, chronic unemployment, rising food and medical costs and the escalating taking of rights and freedoms are not unseen by the population at large, just desperately ignored.

 

 
Tyler Durden's picture

The Federal Reserve's Nuclear Option: A One-Way Street to Oblivion





The point isn't that "the Fed can't do that;" the point is that the Fed cannot create a bid in bidless markets that lasts beyond its own buying. The Fed can buy half the U.S. stock market, all the student loans, all the subprime auto loans, all the defaulted CRE and residential mortgages, and every other worthless asset in America. But that won't create a real bid for any of those assets, once they are revealed as worthless. The nuclear option won't fix anything, because it is fundamentally the wrong tool for the wrong job. Holders of disintegrating assets will be delighted to sell the assets to the Fed, of course, but that won't fix what's fundamentally broken in the American and global economies; it will simply allow the transfer of impaired assets from the financial sector and speculators to the Fed.

 
Tyler Durden's picture

In A Typhoon, Even Pigs Can Fly (For A While)





Here's the global financial crisis in a nutshell: access to easy credit can solve a temporary liquidity problem, but it can't increase the value of collateral or generate income. Once the liquidity typhoon dies down, the insolvent pigs will plummet back to earth. That's what we're seeing in the periphery economies and shadow banking systems around the world.

 
Tyler Durden's picture

Should The Fed Stop The Dominoes From Falling?





The forest (the economy) can only remain vibrant and healthy if the dead wood is burned off in bankruptcy and insolvency. Retail commercial real estate is over-built and over-leveraged. If it is allowed to burn off as Nature intended, we can finally move forward.

 
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