alt Hacker NewsThis 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.
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:
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> 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.