News

Landmark Links June 18th – What a Drag

Must Read: The construction sector has been a massive drag on US GDP for decades as development activity slows over time. Economy Trending Downward: The soft CPI numbers for April throw some cold water on the Fed’s expectation that recent weak inflation data will prove to be transitory. Hitting the Wall: The world’s population is projected […]

Read More

Landmark Links June 14th – Contained

Must Read:  Regulators are alarmed by rapid growth in the $1.3 trillion leveraged lending market but don’t really know who holds the paper.  This passage in particular has echoes of the mid-aughts: Signs of excessive risk-taking have emerged in any number of markets. But leveraged lending has raised eyebrows partly because of how lightly it’s regulated. […]

Read More

Landmark Links June 11th – Long Shot

Must Read: As golf struggles and clubs fall further into the red, some affluent home owners are taking matters into their own hands and self-funding courses in their communities to keep them from going bankrupt. Economy Stinker: The May non-farm payroll report was weak with only 75k jobs created, versus economist projections of 180k.  April’s report […]

Read More

Landmark Links June 7th – Stuck on the Sideline

Must Read The recent plunge in bond yields has resulted in the lowest mortgage rates in a year and a half.  While they haven’t impacted homebuyers much yet, refinance activity is picking up again. Economy It’s Different: Today’s primary recession risk comes from a negative supply shock (trade leading to reduced buying power), whereas the past two […]

Read More

Landmark Links June 4th – Stupid is as Stupid Does

Must Read: Most of the housing-friendly California bills that had been proposed died in committee this legislative session.  However, a bill to cap rent increases state-wide is advancing in the State Legislature because, apparently the best way to reign in out-of-control housing costs in the midst of an epic shortage is to ensure that almost nothing […]

Read More

Landmark Links May 31st – Better Lucky Than Good

Must Read: Some of my readers may recall the name Zynga.  It’s part of a cadre of high-flying iPhone-and-Facebook-centric app / coupon companies that came public around a decade ago and have since fallen on rough times.  Zynga is best known as the 2-trick-pony developer behind Words with Friends and the incredibly annoying Farmville.  Creating […]

Read More

Landmark Links May 28th – Awkward

Must Read: This quote from an Institutional Investor article about big asset allocators mostly avoiding Opportunity Zone funds is one for the ages: “Opportunity zones are like high school sex,” said Brett Messing, president of Skybridge Capital, by phone. “Everyone is talking about it, but nobody is doing it.” Economy Standing By: Minutes from the Federal […]

Read More

Landmark Links May 24th – The Surge

Must Read: The rise in issuance of interest only CMBS loans has now surpassed pre-recession levels.  In fact, I/O issuance as of the third quarter was six times greater than fully-amortizing loan issuance, reminiscent of the bubble era.  A couple of mitigating factors are that leverage is still substantially lower on average than it was back […]

Read More

Landmark Links May 21st – Blocked

Must Read: California State Senator Scott Weiner wrote SB 50 in an aim to increase home building near mass transit.  It was one of the better and more ambitious plans to spur much-needed new construction in the state, in large part by directing growth toward urban areas.  In a sign of division within California’s Democratic […]

Read More

Landmark Links May 17th – Playing Both Sides

Lead Story: In the run-up to WeWork going public, the co-working giant has faced conflict of interest critiques over CEO Adam Neumann buying buildings and then leasing them back to WeWork.  Not content to deal with that (more than potential) conflict, WeWork has now decided to go all in and create a new investment vehicle […]

Read More