> Besides, if credit quality keeps you up at night, you should be much more concerned about bog-standard commercial real estate loans.
I hope that this means there's a followup article coming down the pipe! I have heard of a little bit of weirdness in commercial lending here in Sydney where prices are a fixed multiple of the current rent. That means that is sometimes makes sense to leave a property empty rather than leasing it out at a lower rate, which would devalue the asset pool. Somehow zero is better, who would've guessed.
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[ 3.3 ms ] story [ 31.4 ms ] threadI hope that this means there's a followup article coming down the pipe! I have heard of a little bit of weirdness in commercial lending here in Sydney where prices are a fixed multiple of the current rent. That means that is sometimes makes sense to leave a property empty rather than leasing it out at a lower rate, which would devalue the asset pool. Somehow zero is better, who would've guessed.