Chris Whalen: “Higher For Longer” Interest Rate Regime Is Bad For Banks
Forward Guidance
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Navigating Challenges in Real Estate Development and Banking
The chapter explores the impact of a 'higher for longer' interest rate regime on real estate developers with loans on rent-controlled properties, tackling issues related to covering increased interest expenses. It also discusses how banks are adapting to this environment, shifting towards consumer deposits and managing their liability and asset rates. Furthermore, the conversation delves into the implications of prolonged low-interest rate environments on banks, including the rise of alternative assets and the importance of strategic decision-making.
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