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Keeping it Simple | Ep. 25: Transitory or Purgatory?

Keeping it Simple with Simplify Asset Management

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The Asymmetric Risk of Commercial Real Estate Prices

I just don't see that sort of seismic credit event where, I mean, in 2008, when home prices fell that much. So you had a huge credit crisis at the household balance sheet as well as inside of the banking system and it was massive. And so we've hedged credit risk and probably that's a microscopic market. But commercial real estate, obviously, that's the one that everyone is sort of waiting to blow up. It could fall a lot more than people expect and you could start seeing big impairments there. The longer the Fed keeps things really tight in the economy, the greater the likelihood of something coming out of nowhere and shocking us all.

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