Possible scenario
Workouts Accelerate
20% Chance
The loss gives special servicers and bondholders a clearer market-clearing price for impaired office collateral. Some lenders move faster to liquidate assets, while others extend loans to avoid crystallizing losses at similar discounts.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
Secondary impacts
- Finance -0.6%
Tickers
- VNO-2.0%
- -1.0%
Portfolio impact
S&P 500-0.1%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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