Banks Are Cleaning House Of Their Bad Assets | Chris Whalen
Forward Guidance
Commercial Real Estate Underwriting and LBO Deals in Private Credit
Commercial real estate underwriting involves assessing whether a lender wants to own the asset in case of default at the current price. Lenders might end up owning the building if a borrower defaults, leading to a decision on whether they are willing to take on that risk. In LBO deals, private lenders may end up becoming investors if the company defaults, with their debt turning into new equity. Private credit has seen a rise in LBO deals, with many such deals being worked out in this space.
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