4 ms·
The entire article is all over the place. > But what if the security blows up? Investors could demand their collateral back, forcing renters out of their homes
by j_lev 11y ago
The entire article is all over the place.
> But what if the security blows up? Investors could demand their collateral back, forcing renters out of their homes, even if they never missed a payment. "We could well end up in that situation where you get a lot of people getting evicted—not because the tenants have fallen behind, but because the landlords have fallen behind," says Baker.
At the risk of invoking the "j_lev Law of Eating Hats" I can't see that happening. There is ONE private investment company which has a loan with ONE bank. Investors pull out, the size of the loan just increases by that amount. All the investors pull out and Blackstone Group is left with a lot of (high-yield) property and a large loan with DB. Worst case scenario the properties are sold (potentially at a loss, but the remaining loan is still the problem of Blackstone Group and DB).