The Institutional Risk Analyst

July 29, 2018 | Since the lows of late-June, financials have rebounded more than 10% even as issues such as trade and the flattening Treasury yield curve have dominated the Wall Street narrative. Meanwhile, the bloom is clearly off of the rose in the world of real estate as prices for high-end residential and commercial assets have started to swoon. Lower prices mean higher loan-to-value (LTV) ratios, rising loss given default (LGD) and eventually increased loan default rates