Tag: defaults

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Two Office Landlords Defaulting May Be Just the Beginning

Colin Henderson

With at least $92 billion of office mortgages maturing this year, landlords are under increasing pressure. Bloomberg With the prevalence of Work from Home this had to come. Fixed rents and floating interest. Plus rents dropping. A Pacific Investment Management Co. office landlord that defaulted on $1.7 billion of mortgage notes sent shockwaves through a troubled part of the real estate market.  For years, property owners have been grappling with the rise of remote work — a problem so large that one brokerage estimates roughly 330 million square feet (31 million square meters) of office space will become vacant by the end of the … Continue reading Two Office Landlords Defaulting May Be Just the Beginning

AI

Credit Card defaults rising although manageable so far

Colin Henderson

As noted in Nov 2007, the next thing to watch following sub prime which was already prevalent then was credit card defaults.  It has taken longer than expected which is interesting, but it is now clearly a trend, although being managed so far.  It is clear that credit card companies are pro-actively managing the situation knowing full well that to ignore would bring disaster.  Read Calculated Risk here for examples. Capital One Chargeoffs Rise To 9.4%; American Express Chargeoffs 10%; Card Issuance Drops 50% Credit cards losses are accelerating at Capital One, a trend one should expect to continue given … Continue reading Credit Card defaults rising although manageable so far