The Banking and Strategy Initiative

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Banks get ready for Crisis 3.0 – Blackrock bets on SocGen property loans | Banking Insight

In a seemingly transparent and lucid deal, Blackstone is picking up $131 mln worth of Property loans from Socgen getting in on property plays as Patron recruits an ex Lloyds’ banker to get into the REO/REIT business with $10 bln in property buying plan in London. Blackstone also recently set up a new fund worth $10 bln but was till now only buying distressed loans incl some from RBS and ProLogis

SocGen is selling off marked down $655 mln worth of distressed property loans along with a portfolio of performing credit of $2.36  bln. Deutasche Bank and Lone Star have been shortlisted to buy. Basel recently reported that the new Tier I requirements have been causing the banks to sell off their loan portfolios and make them suspect to staying away from lending for an extended period as they try to procvet hat their is stil worth the new solvency and liquidity rules.

Lloyds is selling off a block of loans to Aussie property developers worth $1.5 bln and AIB and Anglo are also putting their distressed property loans on the block

Solvency II modified

Insurance solvency rules in the meantime having come down heavily on firms to hold adequate matching premium on annuities business eased up a little as the EU regulatorx admitted that as annuities are not structured for daily withdrawals their NAVs would not be helped by daily changes in bond prices. Aviva for example has a lrage UK annuity business, Pru bent on leaving the UK because of the new regime.

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