Colin Jones, Stewart Cowe, Edward Trevillion

Property Boom and Banking Bust (eBook, ePUB)

The Role of Commercial Lending in the Bankruptcy of Banks

• Format: ePub

Produktbeschreibung

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.

---

Dieser Download kann aus rechtlichen Gründen nur mit Rechnungsadresse in A, B, BG, CY, CZ, D, DK, EW, E, FIN, F, GR, HR, H, IRL, I, LT, L, LR, M, NL, PL, P, R, S, SLO, SK ausgeliefert werden.

Produktdetails

• Verlag: Wiley
• Seitenzahl: 216
• Erscheinungstermin: 9. November 2017
• Englisch
• ISBN-13: 9781119219217
• Artikelnr.: 52554953

Autorenporträt

Colin Jones, PhD, is Professor of Estate Management in the Institute for Social Policy, Housing, Environment and Real Estate at Heriot-Watt University, Edinburgh, Scotland, UK. He has published widely on spatial commercial, industrial and housing property markets, urban regeneration and the economics of housing policy. Stewart Cowe worked for thirty years in the investment division of Scottish Widows Investment Partnership. Edward Trevillion, PhD, is an Honorary Professor of Real Estate Investment and Finance in the Institute for Social Policy, Housing, Environment and Real Estate at Heriot-Watt University.

Inhaltsangabe

List of figures
ix Acknowledgements
xi Glossary
xiii 1 Introduction
1 Sub?-prime Lending Enters the Financial Vocabulary
2 The Global Extension
5 Commercial Property Market Context
6 Commercial Property's Role in the Wider Economy
13 Property Investment and Short?-termism
14 Measuring Commercial Property Market Performance
14 Book Structure
16 2 Long?-term Changes to Property Finance and Investment
21 The Changing Role of the Banks in the United Kingdom
21 Property Development and Investment Finance
25 The Changing Investment Landscape of the Non?-banking Financial Institutions
29 The Other Main Players in Commercial Property
30 The Changing Face of Institutional Property Investment
31 Limited Partnerships
34 Jersey Rides to the Rescue
37 Unit Trusts and Indirect Investment
39 Conclusions
41 3 Economic Growth, Debt and Property Investment through the Boom
43 Global Economic Upturn and Debt Accumulation
43 The Property Boom and Escalating Debt
46 The Cost and Role of Debt
52 Development and its Finance in the Noughties Boom
57 The Weight of Money and Moving up the Risk Curve
61 Conclusions
63 4 The Anatomy of the Property Investment Boom
65 Commercial Property, the Macroeconomy and Globalization
66 Global Property Upswing
68 Market Trends in the Property Boom - Was Something Different this Time?
71 UK Investment Trends
76 Lending To Commercial Property in the United Kingdom
82 A Property Boom in an Irrational Market
83 Summary and Conclusions
88 5 The Global Financial Crisis and its Impact on Commercial Property
91 A Crisis Unfolds
92 The Impact on Global Property Markets
95 Capital and Rental Values in the United Kingdom Post 2007
98 But This Time the Bust Was Also Different
100 Investment Trends and Capital Value Falls
106 Changing View of Risk
112 Summary and Conclusions
114 6 Property Lending and the Collapse of Banks
117 The Crumbling of the UK Banking System
118 Royal Bank of Scotland
121 Halifax Bank of Scotland
122 Britannia Building Society and the Co?-operative Bank
130 Dunfermline Building Society
131 Irish Banking Collapse
132 US Experience
136 Discussion and Conclusions
139 7 Aftermath and Recovery
143 The Macroeconomic Context
144 Property Market Trends
147 Bad Bank Debts and Impairments: The Road to Redemption
151 The Response of Property Investors, Property Funds and Property Companies
158 Property Lending Post?-GFC
161 Implications for the Pricing of Commercial Property and Investment
162 Conclusions
166 8 Conclusions
169 Globalization
171 The Boom and Bust through the Prism of Valuations
173 Role of Banking
173 Irrational Exuberance
174 Could It Happen Again?
176 What Can Be Done?
177 Final Thoughts
179 References
181 Index
191