There is optimism in the capital markets about the current rate of growth and health of major banks. But concerns are growing that mounting pressure to build business could lead to something of a rewind of past cycles.
Lenders are scaling back expectations for 2012, according to representatives of major financial institutions speaking at ULI’s recent Capital Markets Conference.
Richard Saltzman, president of Colony Capital, kicked off a session on investing in distressed debt at ULI’s Capital Markets Conference on June 7 in New York City by pointing out that the estimated $1 trillion in “overleveraged, underwater debt” slated to mature over the next six years overwhelms the approximately $300 billion targeting such deals. Only one in five deals might be a home run, he added.