RAIT's exposure to AHM is $95 million. "We may face otherproblem borrowers in the future," Cohen said. "We've outlined theworst-case scenario if all this stuff is, in fact, toxic." Hequantified the company's total exposure to mortgage REITs andhomebuilders at $191 million in equity. "Beyond Armageddon," hesaid, there could be another $86 million in double B-ratedinvestments the company would have to write off.
"We have one delinquent borrower," he said, but, "taking anegative view of any on the watch list," this scenario "assumeszero recovery, although that should not be the case." He said he isunable to name the borrowers in these business sectors or commenton them one by one, but assured that RAIT is in talks with all ofthem and closely monitoring their performance.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 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.
