![]() Demand for credit is still relatively high: US commercial banks have seen their loans outstanding rise about 7% since March, according to Fed data, at a time when the overall economy has grown much slower, if at all.īut the lenders also face more risk, and regulators have been pressuring them to carefully consider what their capital requirements will be in the future. ![]() Many banks have been thinking harder this year about who they extend these kinds of loans to as the Federal Reserve hikes rates and the threat of a recession looms. But revolvers tend to generate low fees, so banks view them mainly as a way to win more profitable business like bond underwriting. ![]() S&P Global Ratings grades the company’s main unit at A-, solidly in the category of investment grade. Lenders weren’t worried about Equity Residential’s overall financial health, Garechana said. “You could feel the constraints that the banks are facing,” he said. This time, there were many more discussions, often focusing on what business banks would get from the company in return, he said. This year, it was a longer journey.įor the company’s $2.5 billion backup line of credit known as a revolver, lenders have historically treated the process like a formality or an administrative task, Chief Financial Officer Robert Garechana said in an interview. (Bloomberg) - Equity Residential, one of the biggest apartment landlords in the US, normally finds refinancing its bank loans to be easy.
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