Loan losses on US commercial property... - Blogs - Aussie Stock Forums

View RSS Feed


Loan losses on US commercial property...

Rate this Entry
Loan losses on US commercial property rise toward record levels

** WDC came to my mind almost immediately, I reckon there is more write off to come, in addition to raise more capital.

In a different tangent, this news is probably one of the clearest signals the market needs to know - that the banks are not out of the sin bin yet. Once the current rush for their "cheap equity" is over, be prepared for the mad rush to the other direction when sanity returns. How much the market is willing to give back will set up the foundation for the year end second wave of rally, if there's one. jmv.

Submit "Loan losses on US commercial property..." to Digg Submit "Loan losses on US commercial property..." to del.icio.us Submit "Loan losses on US commercial property..." to StumbleUpon Submit "Loan losses on US commercial property..." to Google



  1. haunting's Avatar
    Westfield Said to Get $1.4 Billion for Loan After Courting Asia

    ** expected something like this to happen, and mark my words, this little trickle will turn into a torrent once the rest of the cash starved companies in ASX become aware of this "mountain" of cash awaiting them...

    Will they care if some of these cash come from a SWF? Hohoho! (sorry, I am just too cynical to buy into this BS of SWF and state owned corporations will rob us clean...)

    Let me put it simply - if the Aussie firms are still acting "precious", just watch what the Canadian, the Latin Americans and the Africans would do next, and mind you, by the time the whole stampede is over, don't feel bad if there is none left for the Aussies...

    Hard to believe? Just note how much WDC is willing to pay -
    The loan will cost 240 basis points more than Libor, compared with 35 basis points over Libor it is paying for the existing loan, one of the people familiar with the matter said today. A basis point is 0.01 percentage point.

    In a forward start loan, lenders to an existing credit agreement commit to provide financing to replace loans as they mature for increased fees...Westfield is seeking to extend the credit line, which matures in January 2011, by 18 months...
    ** is Frank Lowy crazy or just plain smart? I would go for the latter... and my bet is by 2011, those who are trying to borrow anything greater than 1 billion by then will have to beg (if he can find someone who is willing to lend); if not, will have to pay a much higher price than what Frank is paying now.

    And mind you, by then, many of the mines that are not for sale and are out of bound to the Chinese now will be begging for the Chinese to take them over... if the Chinese decides to cool down their economy by more than 2 quarters! There won't be a boom without the Chinese stimulus and there won't be a boom in commodity if the Chinese are convinced this country doesn't really want their investment.

    How important are they really? Well, there's a report saying China's IO import went gangbuster in June, Volume up 5% at all time high (I think), spot price at a premium... but is there any one really paying attention?

    Who are the real benefactors of this IO boom? Is BHP laughing all the way to the bank? Is Rio rejoicing?

    Dunno, but we can wait. If they don't tell us this time, they will, in the next one...
Aussie Stock Forums