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Stock impact report

Banks' ‘Broken' Model Ramps Up Property Challenges, Lender Says [BNN Bloomberg (Canada)]

Toronto Dominion Bank (The) (TD) 
Last toronto dominion bank (the) earnings: 2/27 06:30 am Check Earnings Report
Company Research Source: BNN Bloomberg
As banks have pulled back from property lending, Zegen's firm sees opportunities to fill the void. Madison Realty Capital seeks to make whole loans, including for construction projects, as well as buy both performing and non-performing debt and provide financing to other lenders, he said. “I think the big challenge right now is, one, the interest rate environment that has brought a huge amount of uncertainty is challenging the investment sales market,” Zegen said in an interview on Bloomberg Television. “That, coupled with a banking crisis that happened about a year ago, still leaves people with PTSD, depositors in particular. Banks traditionally borrowed short and lent long. And that model is broken.” The Federal Reserve's interest rate hikes have crimped transactions and pressured landlords — particularly owners of office buildings that were already hit by the rise of remote work. As costs mounted, property valuations tumbled, pushing some investors to walk away from certain bu Show less Read more
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