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ACORE Capital CEO: Bad loans cannot be hedged

CRE Daily · ·by G4L

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  1. 1Warren DeHan, CEO and co-founder of ACORE Capital, argues that many new entrants to the private credit market will be weeded out.
  2. 2In 2007, the Countrywide team decided to stop lending and hedged and sold a loan book of approximately $4 billion.
  3. 3ACORE has 140 employees and records an average loan size of $85 million.

So what's the key point?

The head of ACORE Capital says that people entering new markets will eventually fail. This means bad loans are risky, similar to the case where a $4 billion loan book was cleared out.

Source CRE Daily · View original ↗

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