Comment by CodingJeebus
1 day ago
This just isn't true. Banks never offload commercial debt to non-bank entities at a discount unless they're under financial duress or they believe the loss is worth more than keeping the debt on the books.
1 day ago
This just isn't true. Banks never offload commercial debt to non-bank entities at a discount unless they're under financial duress or they believe the loss is worth more than keeping the debt on the books.
Concentration requirements can apparently cause this.
Let me dig up the FT article I read about this.
Here's the article: https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5ba...
And this quote:
> Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://help.ft.com/faq/gifting-and-sharing-an-article/what-.... https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5ba...
> Investors expect more such moves as banks come up against risk limits that restrict their exposure to individual borrowers or sectors, and seek to free up balance sheet for more lending.