2 ms·

Presumably this possibility is part of the risk the lenders are taking into account and charging for. If loan collateral was subject to constantly being marked-

by brasic 4y ago

Presumably this possibility is part of the risk the lenders are taking into account and charging for. If loan collateral was subject to constantly being marked-to-market and lenders could “margin call” to get more in scenarios like this, lending would be quite a bit safer.

JaimeThompson 4y ago
In very hot markets such as the one we are currently in rational long term thinking is brushed aside rather more often then is responsible so the assumption they correctly quantified the risk in this transaction isn't fully supported by their past history of actions.