Commercial property blues

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Commercial property blues

  1. 1. Commercial-property blues According the U.K. i n December 2009
  2. 2. The risk to banks, and to the economy at large <ul><li>Problems </li></ul><ul><li>How to continue ? </li></ul><ul><li>Solutions </li></ul>
  3. 3. Problems <ul><li>Fear </li></ul><ul><li>A giant overhang of loans </li></ul><ul><li>Little is on offer and hard is to get credit </li></ul>
  4. 4. How to continue ? Bank in this situation face a stark choice: foreclose the loan and trigger a fire sale, or hang the hope that the market will improve
  5. 6. The most likely provides of this capital a foreign investors
  6. 8. Solutions <ul><li>Rise in interest rates </li></ul><ul><li>Make the loans more expensive </li></ul><ul><li>Pitch more borrowers into default </li></ul>
  7. 9. The Economist December 5th 2009 economist.com/britain
  8. 10. Thank you!

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