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...And while demand for high quality properties remains high, the outlook for low quality buildings is grim....
...“Loan growth saw yet another weak quarter [from October to December] due to a common focus on quality given elevated household debt and challenged small and medium enterprises, amid a still sluggish and...
...Separately, it paid a $25mn penalty to the CFPB related to private student loan servicing practices. “Capital One is a healthy, well-managed, well-capitalised bank....
...“Asset quality in commercial remains in a very, very good place, outside of the office sector,” said BofA’s Borthwick....
...“This will cause pricing, terms and credit quality to erode, fuelling systemic risk.”...
...Third, the quality of finance matters....
...The UN reports that nearly half of the world’s people live in a nation that spends more on servicing foreign debt than it does on healthcare....
...Central Huijin, a unit of the $1.4tn China’s largest sovereign fund China Investment Corp, plans to increase holdings over the next six months, according to filings....
...The rise in interest costs has hit most sponsor-backed companies, but has had the greatest impact on lower-quality borrowers by eating away at the cash flows they use to service debts....
...Trafigura said the targets in its loans related to “material” business issues. Gunvor said its own loan targets were linked to emissions that the company could “directly influence”....
...Estimates for work are provided free of charge, and typical servicing rates are £380 to £400 for a good quality, three-hand watch, rising to £450 to £550 for a chronograph, and up to £2,000 for high complication...
...While other big banks are still reporting increases in the profit they make from charging more for loans than they have to pay out for deposits, State Street’s net interest income dropped by 10 per cent...
...At the same time, a surge in interest rates has pushed up debt servicing costs....
...Even higher-quality companies are getting shut out, with single-B and single-B minus rated loan issuance in the US down more than 70 per cent from 2021 levels....
...And higher rates also mean higher loan servicing costs, although most funds have fairly long-term loan structures and many have hedged out their interest rate risk....
...But experts said this did not indicate that the underlying quality of China’s loan book had improved. “Far from it,” said Matthew Mingey, senior research analyst at Rhodium....
...Assured Guaranty provides a niche type of insurance that pays out to lenders if a borrower defaults on its loans....
...This evidence suggests that specialized banks can discern borrower quality due to superior industry-specific knowledge in their specialized industry....
...JPM is assuming $186bn in FRB assets, mostly in the form of its loan and mortgage book, while taking on $168bn of liabilities....
...Mortgage Reits also can face capital calls from their banks if the quality of their loan portfolio deteriorates to a certain point....
...“And it doesn’t surprise me that the FDIC is going to have to take a loss, in part because of the low quality of the remaining assets.”...
...The Fed has announced a new temporary liquidity facility to offer loans to banks against eligible government securities collateral to help meet their funding needs and reduce contagion risks....
...Internally, he has made little secret over how laborious the BNL deal was, after BNP had to grapple with its poor quality loan book — a cautionary tale for other cross-border mergers....
...At CCB, the non-performing loan ratio for property nearly doubled year on year....
...Because such loans attract interest at floating rates, their value does not mechanically fall as rates rise — but that may not help much if overleveraged companies struggle to meet the rising cost of servicing...
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