Investment banks could well continue to resist selling assets at deep enough discounts -- certainly they haven't in any numbers thus far. Investors, for their part, may decide the market has bottomed out before it actually does -- and pay too much for assets that have more risk attached to them than first realized.
That latter scenario is David Schechtman's biggest concern right now. A broker with Eastern Consolidated, he tells GlobeSt.com that it is a question he constantly gets as he shows product in the New York area. "I can tell you people's number one fear is that value still has much further to slide."
Much depends on the location of the asset, he continues. "Outside of New York, the discounts are very deep and the time may finally be ripe for those to go to market. However in the tri-state region there remains a tremendous disconnect between buyers and lenders of non performing loans and assets." Banks that are holding on to these assets are refusing to make the final – and necessary – cuts in price for trading to truly begin, he says.
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