Impact of Lehman Sale Indirect: Real Capital's Fasulo
Commercial Property News reports: "I'm not sure how much of a direct impact that's going to have," commented Dan Fasulo, managing director for Real Capital Analytics Inc. Lehman's disappearance would have little effect on the securitization market, which has been almost nonexistent this year, he noted.
Instead, the impact on the real estate capital markets would probably be indirect; Fasulo speculated that Lehman's impending fate could increase worries about the capital market's stability that could nudge up the cost of debt. To be sure, much of Lehman's troubles stem from overexposure to subprime residential mortgages, and the bank is stuck with a considerable amount of paper it has been unable to get off its balance sheet through securitization. Ironically, however, Lehman's portfolio undoubtedly also includes "a lot of good stuff," since commercial real estate fundamentals remain sound, Fasulo noted.
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Posted by: Nina Turner