Latest comments for http://www.ababj.com , comment 0 to 2 out of 2 comments http://www.ababj.com Tue, 21 May 2013 19:54:11 +0100 FeedCreator 1.7.2 http://www.ababj.com/myblog/how-a-new-bubble-gets-created-3700.html#pc_1510 The bubble is the one on bank balance sheets consisting of liquidity created by low rates and relatively anemic loan demand. It's internal by nature and not created or in response to a bona fide increase in credit demand from larger economic factors. The resulting business is a redistribution of what is available on what would otherwise be considered generally reasonable credit terms excepting for price and the traditional covenants relating to deals extending over multiple years. This does not appear to be market driven in the usual sense and to the extent that these are not "one off" sorts of transactions, they could be problematic. Once again in my life time as a commercial lender and banker, we are ignoring the basic principle of pricing for risk as well as competing for business by more limber credit terms. I thought we knew better. - Ed OLeary responds: Sat, 02 Mar 2013 22:24:15 +0100 http://www.ababj.com/myblog/how-a-new-bubble-gets-created-3700.html#pc_1508 I don't see the support for this perceived loan bubble. In what sector and why? It appears from my end as a commercial lender that standard remain in the box while real estate values are rebounding, very early in the cycle all around yet so values should be on the conservative basis. I think the larger risk being taken in the market is interest rate risk. - Andy Sat, 02 Mar 2013 08:43:06 +0100