With this new program- the Fed can raise rates. But banks are largely unaffected?
Banks desperately want to avoid marking their Commercial Real Estate portfolios correctly. They are miss marking them at levels when everyone worked in an office.
Only the little people who must refinance at higher rates
From what I understand of the commentary, this is a two-year (almost) stopgap.
So, presumably, look for the hammer to fall somewhere else - presumably on the US public - within that window so that banks and large corporates can retain their value after somebody else has taken whatever hits need taking...
With this new program- the Fed can raise rates. But banks are largely unaffected?
Banks desperately want to avoid marking their Commercial Real Estate portfolios correctly. They are miss marking them at levels when everyone worked in an office.
Only the little people who must refinance at higher rates
From what I understand of the commentary, this is a two-year (almost) stopgap.
So, presumably, look for the hammer to fall somewhere else - presumably on the US public - within that window so that banks and large corporates can retain their value after somebody else has taken whatever hits need taking...
“there is nothing as permanent as a temporary government program”