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Working Paper
No News is Bad News: Monitoring, Risk, and Stale Financial Performance in Commercial Real Estate
As financial intermediaries, banks have a key role in producing information and managing the risks on diverse loan portfolios. An important input into this process is ongoing collection of financial performance from borrowers. Using supervisory data on commercial real estate loans (CRE), this paper studies relationships between the content and timeliness of borrower-reported performance, internal bank risk ratings, and subsequent loan performance. Banks heavily rely on borrower reporting when setting risk ratings, despite the fact that borrowers with stale financials are more likely to ...
Discussion Paper
Rising Property Insurance Costs and Pass-Through to Rents for Apartment Buildings
Substantial increases in homeowners' insurance costs since the late 2010s have raised homeowners' housing costs. Spreading reports about similar insurance cost increases for apartment buildings may prompt similar questions about the implications for renters' costs.