Property boom and banking bust : the role of commercial lending in the bankruptcy of banks / Colin Jones, Stewart Cowe, Edward Trevillion.

Format:

Book

Author/Creator:

Jones, Colin, 1949 January 13- author.

Contributor:

Cowe, Stewart, editor.

Trevillion, Edward, editor.

Language:

English

Subjects (All):

Real estate investment.

Commercial real estate.

Mortgage loans.

Financial institutions--Real estate investments.

Financial institutions.

Physical Description:

1 online resource (197 pages) : illustrations

Edition:

1st ed.

Place of Publication:

Hoboken, New Jersey : Wiley Blackwell, 2018.

Summary:

"A fascinating analysis of the critical role commercial property investment played in the economic boom and bust during the global financial crisis The unprecedented financial boom stretching from the mid-1990s through 2008 ultimately led to the deepest recession in modern times and one of the slowest economic recoveries in history. It also resulted in the emergence of the draconian austerity policies that have swept across Europe in recent years. Property Boom and Banking Bust offers an expert insight into the complex property market dynamics that contributed to the Great Financial Crisis of 2008 and its devastating economic consequences. It is the first book to focus on a woefully underreported dimension of the crisis, namely, the significant role that lending on commercial property development played in the crisis. Among other key topics, the authors explore the philosophical and behavioral factors that propelled irresponsible bank lending and the property boom; how it led to the downfall of the banks; the impact of the credit crunch on the real estate industry generally in the wake of the financial crisis; the catastrophic effects the property bust had on property investors, both large and small; and how the financial institutions have sought to recover in the wake of the financial crisis.  Provides valuable insights into what happened in previous booms and busts, particularly in the 1970s and 1980s, and how they compare with the most recent one Offers an expert assessment of the consequences of the global financial crisis for the banking system and the commercial property industry Examines strategies banks have used to recover their positions and manage the overhang of indebtedness and bad property assets Addresses strategies the real estate industry have used to recover from the collapse in property values Written in an accessible style, and featuring numerous insider case accounts from property bankers, Property Boom and Banking Bust disentangles the complex, tightly-woven factors that led to the Great Financial Crisis of 2008, while offering powerful lessons for property industry professionals on how to avoid having history repeat itself"-- Provided by publisher.

"This book offers a practical explanation of the property boom funded by generous bank lending, the impact of the credit crunch on the real estate industry, the downfall of the banks, the impact on property investors large and small, and how the financial institutions have sought to recover from the disaster that was the Great Financial Crisis"-- Provided by publisher.

Contents:

Intro

Title Page

Copyright Page

Contents

List of Figures

Acknowledgements

Chapter 1 Introduction

Sub-prime Lending Enters the Financial Vocabulary

The Global Extension

Commercial Property Market Context

Past UK Experience

A Worldwide Phenomenon

Commercial Property's Role in the Wider Economy

Property Investment and Short‐termism

Measuring Commercial Property Market Performance

Book Structure

Chapter 2 Long-term Changes to Property Finance and Investment

Chapter 3 Economic Growth, Debt and Property Investment through the Boom

Chapter 4 The Anatomy of the Property Investment Boom

Chapter 5 The Global Financial Crisis and its Impact on Commercial Property

Chapter 6 Property Lending and the Collapse of Banks

Chapter 7 Aftermath and Recovery

Chapter 8 Conclusions

The Changing Role of the Banks in the United Kingdom

1979 - A New Direction

Property Development and Investment Finance

The Changing Investment Landscape of the Non-banking Financial Institutions

The Other Main Players in Commercial Property

The Changing Face of Institutional Property Investment

Limited Partnerships

Jersey Rides to the Rescue

Unit Trusts and Indirect Investment

Conclusions

Global Economic Upturn and Debt Accumulation

The Property Boom and Escalating Debt

To Whom Were the Banks Lending?

The Cost and Role of Debt

Development and its Finance in the Noughties Boom

The Weight of Money and Moving up the Risk Curve

Commercial Property, the Macroeconomy and Globalization

Global Property Upswing.

Market Trends in the Property Boom - Was Something Different this Time?

UK Investment Trends

The Rise of the Small Investor

Lending To Commercial Property in the United Kingdom

A Property Boom in an Irrational Market

Summary and Conclusions

A Crisis Unfolds

The Impact on Global Property Markets

Capital and Rental Values in the United Kingdom Post 2007

But This Time the Bust Was Also Different

Investment Trends and Capital Value Falls

Transaction Volumes

Market Yields

Changing View of Risk

The Crumbling of the UK Banking System

Royal Bank of Scotland

Halifax Bank of Scotland

Impairments

Related Issues

Conclusion

Britannia Building Society and the Co-operative Bank

Dunfermline Building Society

Irish Banking Collapse

US Experience

Discussion and Conclusions

The Macroeconomic Context

Property Market Trends

Bad Bank Debts and Impairments: The Road to Redemption

The Response of Property Investors, Property Funds and Property Companies

Property Lending Post-GFC

Implications for the Pricing of Commercial Property and Investment

Globalization

The Boom and Bust through the Prism of Valuations

Role of Banking

Irrational Exuberance

Could It Happen Again?

What Can Be Done?

Final Thoughts

References

Index

EULA.

Notes:

Includes bibliographical references and index.

Description based on print version record.

ISBN:

9781119219217

1119219213

9781119219200

1119219205

9781119219231

111921923X

OCLC:

1003489728