U.S. Capital Markets Glide Path to Clearer Skies

01 Distress will progress over the next seven years as lenders are faced with the decision to amend/modify/extend maturing loans (or take the keys back or do a lender-assisted sale).

02 Pockets of challenge and weakness will impact portions of the CRE credit space.

03 Exposures are concentrated and the impacts of distress are not going to be uniform across the industry.

Stress & Distress Key Points

05 Significant opportunity exists to optimize stressed/distressed assets and portfolios in response to changing market conditions; applies to multiple points within an asset/portfolio lifecycle, all as it applies to both asset management and capital/debt market opportunities.

04 This oncoming period will be painful for some borrowers and lenders, and it will create dislocations in the marketplace whereby certain equity or debt sources may need to step in to provide solutions to underwater owners, defaulting loans or distressed asset sales.

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