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"I view CRE risks currently as sizable but manageable."
Small markets can sometimes be good, but they require a lot of smart work and luck.
This could change how CRE debt disputes get settled.
There's been questions for a while by some at the Fed whether cutting rates would be wise.
Generative artificial intelligence can be useful, but getting automatic protections against what can go wrong may not be possible.
The PCAOB says there's danger of companies using 'unrealistic assumptions' to make the numbers work.
And tenants aren't having easy credit times either, says the Fed.
Healthcare Realty will provide properties to seed the JV while KKR provides an equity contribution.
That's going to make waiting for any eventual interest cuts harder.
If true, ironically it would likely mean more rate cuts and cheaper financing.