Monday, July 15, 2013
Selling at a 3.5% discount – a good buy?
"Germany's second-biggest lender Commerzbank has sold British property loans worth 5 billion euros to U.S. rival Wells Fargo and private equity firm Lone Star Funds to shrink its loan book and reduce risk". "the low-interest environment, which leaves holders of some government bonds with hardly any returns, increases the attraction of higher-yielding alternatives. That has led to investors agreeing to lower discounts when buying risky assets such as non-performing mortgages".