Monday, November 9, 2009
Slowly but surely it’s all starting again!
As credit markets have stabilized and financial institutions make bets the worst has passed, signs are emerging that some banks are willing to take on the risk. During the past two weeks, JPMorgan Chase & Co. began quoting loans to commercial borrowers with the intent of pooling them to be sold as bonds, though no loans have been closed yet, according to a person familiar with the program. â€œThis is a very positive sign for the market,â€ Hoeffel said. â€œWhile itâ€™s only a toe in the water, banks are actually taking the execution risk of a securitized exit.â€