"Bain, KKR, and Vornado... will end up losing well over a billion dollars combined."
A lot of retail debt will be renegotiated in 2019 as underlying interest rates are increasing, so the pace of these might be set to increase dramatically as delaying reckonings like TRU did becomes steadily more costly.[1]
The article points out that the collapse of this one big name was pretty expensive to lenders, even if lawyers made some money during the unraveling.
I'm curious about the prospects for another financial crisis. How many billion dollar losses happening all at the same time are we looking at? How many can retail financing divisions endure without undermining the stability of larger banks?
It's not my main area of expertise, so I genuinely don't know if there's a serious contagion risk, but Google alerts for retail apocalypse have been a fun ride.
A lot of retail debt will be renegotiated in 2019 as underlying interest rates are increasing, so the pace of these might be set to increase dramatically as delaying reckonings like TRU did becomes steadily more costly.[1]
The article points out that the collapse of this one big name was pretty expensive to lenders, even if lawyers made some money during the unraveling.
I'm curious about the prospects for another financial crisis. How many billion dollar losses happening all at the same time are we looking at? How many can retail financing divisions endure without undermining the stability of larger banks?
It's not my main area of expertise, so I genuinely don't know if there's a serious contagion risk, but Google alerts for retail apocalypse have been a fun ride.
[1] https://www.bloomberg.com/graphics/2017-retail-debt/