Chapter
The Future of Banks with Real Estate Exposure
10:04 - 22:47 (12:43)
The impact of COVID-19 on real estate is putting pressure on banks that are overweight in 10-year bonds, loan obligations, and mortgages. Despite this pressure, it is not clear whether this will lead to commercial real estate owners being foreclosed on or whether the Fed will provide a backstop.
Clips
The recent drop in yield on the 10-year treasury from 4.1% to 3.4% has had a significant impact on the unrealized losses and asset values at banks, which holds roughly $7 trillion of assets with an average equity ratio of 15%.
10:04 - 12:49 (02:45)
Summary
The recent drop in yield on the 10-year treasury from 4.1% to 3.4% has had a significant impact on the unrealized losses and asset values at banks, which holds roughly $7 trillion of assets with an average equity ratio of 15%.
ChapterThe Future of Banks with Real Estate Exposure
EpisodeE121: Macro update, Fed hike, CRE debt bubble, Balaji's Bitcoin bet, TikTok's endgame & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Smaller banks are currently holding around $2.3 trillion in commercial and real estate debt, including rental apartment mortgages, which is causing issues for those looking to refinance or secure long-term debt for their buildings.
12:49 - 14:20 (01:30)
Summary
Smaller banks are currently holding around $2.3 trillion in commercial and real estate debt, including rental apartment mortgages, which is causing issues for those looking to refinance or secure long-term debt for their buildings. The situation is dire, and commercial real estate developers are struggling to find solutions.
ChapterThe Future of Banks with Real Estate Exposure
EpisodeE121: Macro update, Fed hike, CRE debt bubble, Balaji's Bitcoin bet, TikTok's endgame & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
During the pandemic, depositors are moving out of community and regional banks into the bigger four, prompting smaller banks to request money from the government to cover the volatile shift in liquidity.
14:20 - 18:59 (04:39)
Summary
During the pandemic, depositors are moving out of community and regional banks into the bigger four, prompting smaller banks to request money from the government to cover the volatile shift in liquidity. Banks are taking a more defensive stance as they continue to see deposits fleeing from their banks, except for the top four banks.
ChapterThe Future of Banks with Real Estate Exposure
EpisodeE121: Macro update, Fed hike, CRE debt bubble, Balaji's Bitcoin bet, TikTok's endgame & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
There are concerns that the real estate market bubble could burst and have negative consequences for debt holders and banks.
18:59 - 22:47 (03:47)
Summary
There are concerns that the real estate market bubble could burst and have negative consequences for debt holders and banks. The Fed may need to provide a backstop for real estate, but there is uncertainty around how they will handle the situation.