BIS: Lower for Longer Makes Syndicated Lending Even Riskier
As lower goes from longer to seemingly forever, BIS staff have released a new paper showing not only that ultra-low rates induce bank risk-chasing, but also that this risk-taking is not – as prior research suggested – largely limited to better-capitalized banks.

FHFA Begins Action on Appraisal Discrimination and Modernizations
Presaging a possible directive to the GSEs, FHFA today requested comment on current appraisal policies, discrimination risk, and potential modernizations. Reflecting what FedFin has called the new, “racial-equity era of consumer finance” (see Client Report CONSUMER36), FHFA seeks views on research substantiating valuation differences by borrower and neighborhood ethnic makeup, the extent of any disparities, and what might be done about them.

Daily122820.pdf