"I think there's a tremendous risk," says PPM Finance Inc.executive vice president David M. Zachar, admitting his own companyis writing more interest-only loans that he would prefer. "Therecould be some serious stress in the marketplace."

Zachar was among panelists discussing debt and equity markets,which included some competitors who are providing more leveragethan Zachar's 75%. For example, GE Commercial Finance and Bank ofAmerica are providing loans up to 95% loan-to-value, usuallyinvolving a mezzanine lender partner. "Clients want one-stopshopping," says GE Commercial Finance managing director DebbieRiley.

"I don't think 90% to 95% financing is for everybody," adds Bankof America senior vice president Patrick T. Burns. "I think youhave to pick your spots."

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