"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."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.