News Alerts. Nov. 18, 2013. #RealEstate

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  1. Spain Free-for-All Pitting Apollo Against Blackstone – Bloomberg News Alerts. Nov. 18, 2013. #RealEstate

    Sharon Smyth, Neil Callanan, & David Carey report:

    Apollo is competing with Blackstone Group LP, Goldman Sachs Group Inc. and Lone Star Funds for Spanish assets as the economy shows signs of improvement and after the European Central Bank pledged to do whatever it takes to preserve the euro. They’re seeking to take advantage after prices plunged, saddling banks with soured loans and leaving companies short of capital.

    “No one is now questioning whether Spain will leave the euro zone or not and there are fewer opportunities elsewhere,” Rami Badr, investment director at Orion Capital Partners, said at the conference. “A number of hedge funds and financial investors are now coming to Spain, which is perceived as a new El Dorado,” he said, referring to the mythical city of gold sought by the Spanish Conquistadors in South America.

    Source …

  2. Report: Recovery Hampered Until Lawmakers Focus on Housing Policy News Alerts. Nov. 18, 2013. #RealEstate

    Ashley R. Harris reports:

    According to some, there are many issues with the U.S. government, but housing policy ranks highest. A new report published by the Opportunity Agenda, National Fair Housing Alliance, and the National Association of Real Estate Brokers (NAREB) claims that the U.S. housing policy is broken, denying millions of would-be homeowners the credit and financing they need to achieve the American Dream. This broken system can be repaired with immediate executive and administrative action in Washington, D.C., sidestepping a glacially slow and highly partisan Congress, according to the authors of the study.

    Source …

  3. Housing cannot improve without better jobs data | HousingWire News Alerts. Nov. 18, 2013. #RealEstate

    As consumers get scared, they pull back on large ticket items, like housing, she [Lindsey Piegza, managing director and chief economist with Sterne Agee] explained. As the unemployment rate goes down, they are more likely to spend on large ticket items, Piegza added. But that’s not happening yet, and real estate is one of the markets losing out on potential borrowers.

    Meanwhile, Fannie Mae Chief Economist Doug Duncan said businesses are just not hiring at a pace that mirrors activity levels from other post-recessionary periods.

    Source …

  4. Real Estate Technology Trends| What Technology Trends Are In-Store for Multifamily in 2014? – Apartment Intelligence™ News Alerts. Nov. 18, 2013. #RealEstate

    According to an article published by industry insider Donald Davidoff for NAA (National Apartment Association), there are four key trends emerging in apartment technology that apartment executives need to be aware of.

    Not all tenants are happy. Some are disgruntled and will leave. Not all negative reviews are justified. Do you want those negatives hanging out there?

    One negative takes how many positives to overcome it? Just how good do the positives need to be to offset the negatives?

    These things said, you can always experiment.

    However, you can’t completely control independent rating/review-sites. Some issues could mushroom into costly legal battles.

    Therefore, we respectfully recommend that you approach this new technology format with eyes wide open.

    Source …

  5. Economic Musings – End the “cut IOR to zero” Idiocy

    Here’s someone (David Schawel) who thinks cutting interest paid on excess reserves is a “very bad idea.”

    With all due respect, the problem with the thinking in the article in our view is that interest being paid on excess reserves is not some old “facility.” It’s fairly new. We know the system worked without it. Yes, people have set things up now around it, but returning to no interest wouldn’t slam on the brakes, far from it.

    The article basis its assumptions on that costs would simply be passed to the consumer, but strings on the interest charges could be attached. Plus, consumers have already complained quite a bit about rising fees. Those fees are a bit sticky right now.

    Were the large banks to simply boost them, many people would move their money to institutions with smaller excess reserves — the point of competition (to have smaller excess reserves), accomplished by lending (the Money Multiplier stabilized and functioning again).

    Also, the banks have had record profits. It’s not as if charging them interest would freeze their positive cash flows.

    Plus, there is a newer facility (Fixed-Rate, Full-Allotment, Overnight, Reverse-Repo Facility) that various experts are suggesting could be used in conjunction with charging interest and in ways that would enhance the whole system (more on this in the next links). It would be a real shame to cut off the discussion before the fine details of how that all might work have even been discussed in public where we all may chime in.

    Lastly, the idea that excess reserves have nothing to do with lending is exactly the reason to lower the interest paid on reserves or to even charge outright nominally positive rates: to spur banks to find borrowers. But we’re being redundant.

    Overall, it’s a great idea relative to what’s been going on at the Fed pushing on a string.

    Source … zero-idiocy

  6. Banks may lose perk as Fed mulls cutting rate on excess cash | Reuters

    Karen Brettell reports:

    Market speculation that the Fed may be nearer to acting on a cut also increased on Thursday after influential firm Medley Global Advisors said in a report that the Fed may cut the excess reserve rate, noting that it has more flexibility to do so now that it has been testing its reverse repurchase agreement program.

    In reverse repos, the Fed temporarily drains cash from the financial system by borrowing funds overnight from banks, large money market mutual funds and others, and offering them Treasury securities as collateral. This helps the Fed control short-term rates as the supply of collateral can stop market disruptions from rates falling to zero or into negative territory as cash floods into short-term markets.

    The Fed has been testing this program since September.

    “The logic for cutting the IOER now, would be to better align the IOER with other short-term rates and hopefully encourage greater market-based lending,” said Kenneth Silliman, head of short-term rates trading at TD Securities in New York.

    “With the creation of reserve draining facilities, like the Overnight Reverse Repo Facility, the Fed now has the ability to better align rates without destabilizing money markets given that the Fed can essentially put a ‘floor’ on short-term rates by injecting collateral/draining reserves into the market. This would have a stabilizing effect,” he said.

    Source …

  7. Yellen Sees Chance Fed Could Cut Rate It Pays Banks on Reserves – SFGate

    In a Nov. 8 report to clients, Lantz [Carl Lantz, head of interest-rate strategy in New York at Credit Suisse Group AG] estimated that the Fed has paid “excess interest” of $5.1 billion to the banking system since December 2008 as a result of the spread between the rates in the market and what it’s been paying out.

    Source …