bearfund

Hedge Fund Manager's Notebook: The Power of Dividends

A panic over a $225m default? I doubt it. Any loss there would be small relative to previous write-offs and credit to marginal borrowers is already effectively nonexistent. Aside from a small hit to DB I see little impact from such a potential default. Yes, there could be more room for squeezing in CRE but not much room and in any case this just isn't enough money to make a difference. To put it in perspective, it's less than 0.1% of the amount banks have already written down, and that's if it's a total loss which it wouldn't be.