Fitch: Market Poised for Bulk Sales in Commercial Sector


The market is now poised for many banks to begin unloading nonperforming assets—particularly commercial real estate—in the form of bulk sales, according to Fitch Ratings.

Tightening yield spreads in the commercial market, pressure from regulators regarding loss reserve positions, and limited financing will prompt banks to unload nonperforming commercial assets over the next 12 to 18 months, according to the ratings agency.

“We see tightening risk spreads reflecting an influx of yield-starved investors such as hedge funds, high-yield asset managers, and other lightly regulated entities seeking higher returns in a continued low interest rate environment,” the agency stated.


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