The Point of No Return

Our own Bill Black on bank’s equity and nonperforming loans. Black argued on the Bloomberg article that

“While 5 percent can be “fatal” for home lenders, commercial real estate lenders may be able to withstand higher rates…Commercial loans carry higher interest rates because they’re riskier.”

“At the 5 percent range, you’re probably hurting,” said Black, an associate professor of economics and law at the University of Missouri-Kansas City. “Once it gets around 10 percent, you’re likely toast.”

Click here to read the whole article.

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