Mar 26 2024

Podcast: Real Estate Investing: Unscripted

Haseeb Rahman | Raising Capital, Deploying Capital, and Getting the Return

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Mar 19 2024

Palisades Perspectives: The Housing Inflation Conundrum

The problem facing the Fed is that along the path of easing policy, pent-up demand will likely be released BEFORE pent-up deferred sales.

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Jan 30 2024

Palisades Perspectives: Rent vs Buy

The gap between renting and buying a home has reached unprecedented levels in the United States.

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Jan 03 2024

Introductory Guide to Private Residential Credit Investment Management

This introductory guide to U.S. private residential credit investment management explores key components and intricacies of the strategy. It also highlights various management styles and potential opportunities and risks within the sector.

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Oct 30 2023

Market Insights: Private Residential Credit Portfolio Allocation

The market for private residential credit is estimated to be approximately 2.2 times the size of the non-bank corporate lending market, which is the prevailing definition of ‘private credit.’ Based on the respective size of the markets today, one could expect private residential credit to contribute 60% to 70% any diversified private credit portfolio allocation.

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Sep 08 2023

Market Insights: Is It All About Mortgage Rates?

There have been only 63 weeks (over the last 2,465) where the mortgage spread exceeded 3.1%, or less than 2.6% of the time.

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Jul 10 2023

Market Insights: What's up with Home Values?

While residential housing is currently struggling with ‘low’ everything (affordability, demand, supply, etc..), we believe that it will be a bright spot for the balance of the year, certainly as compared to commercial real estate.

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Jun 02 2023

Market Insights: Housing Crash or Opportunity?

Private residential credit is the intersection of private credit markets and real estate, where the loans enjoy credit protections and are at all times collateralized by land and building structures

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Mar 28 2023

Podcast: How Modern Technology Solutions Uplevel the Finance and Investment Space with Fraser Armstrong-Watters

Technology has created numerous opportunities for the finance and investment space, some of which include automation, access to data, AI, online investing, and more.

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Mar 21 2023

Market Insights: March 2023

It would be an understatement to describe the events of the last couple of weeks as “drama-filled”.

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Dec 16 2022

Charts: The Good, the Bad, and Relative Value

Let's look at housing supply, demand, affordability, credit and relative value in residential credit.

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Jul 18 2022

Market Insights: July 2022

2022 ushered in the end of a roller coaster ride that has been ongoing for several years

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Apr 27 2022

Market Insights: April 2022

With corporate debt sitting at $11.6 trillion, or 80% higher than a decade earlier according to Federal Reserve data, what happens if demand slows down?

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Aug 31 2021

Short Takes: Home Prices Rise 19.08%

Case Shiller 20-City home price index reports 19.08% year-over-year appreciation as of June 2021

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May 19 2021

Short Takes: Housing Input Costs & Supply Chain Considerations

Material costs are becoming a ‘fly in the ointment’ for many housing developers/builders.Input costs such as lumber, steel and copper have all been steadily increasing in 2021 as demand for raw materials has elevated.Source:Chicago Mercantile Exchange, Commodity Exchange, Inc.According to the NAHB, the increase in lumber prices over the past twelve (12) months has added $35,872 to the price ofthe average new single-family home, or approximately 10% of the median price of new home sales. In most markets, the demand for housing allows developers to pass along the added costs to the end buyer.Of course, the inelasticity of demand relative to changes in price has an upper bound.To the extent (i) material costs continue to rise and are not locked in upfront, and (ii) demand begins to wane such that cost increases may not be passed along to the buyer —developer margins will be compromised.Often, experienced developers lock in the input costs early in the project life cycle.While input price is often locked in –delivery is not.As a result, supply chain disruption and material shortages have the potential to delay completion timelines. Interruptions tend to reduce developer profits to the extent they cannot be passed along to the end buyer (e.g. pre-sold deals).Given the quality of borrowers, project, and geographic locations of the Fund’s portfolio, we do not anticipate any material degradation of performance as a result of the input costs or project delays.

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May 03 2021

Insights: 2Q 2021 Market Commentary

It is a fascinating time to be a participant in the financial markets as an investor and risk manager.Individuals around the globe are becoming vaccinated, and day-to-day life is seeminglyreturning to some state of normalcy.Many individuals, businesses, industries, and markets are enjoying economic tailwinds because of fiscal stimulus.

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Mar 10 2021

Short Takes: U.S. Flood Risks - A 'Rising' Risk to Consider

In the face of growing climate change, the traditional approaches to evaluating flood risk are quickly falling behind. The impact of this risk asymmetry could have a profound effect on homeowners and owners of mortgage debt who are inadequately covered from an insurance perspective. While the government is likely to provide an economic backstop in the short term, the longer term gap in coverage will only be bridged by methods that will significantly influence home ownership affordability in the nation’s high risk areas. What this means for local economies is yet to be seen, but here at Palisades we will be monitoring closely.

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Feb 23 2021

Short Takes: Home Prices Rise 10.10%

Case Shiller 20-City home price index reports 10.10% year-over-year appreciation as of December 2020

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Dec 28 2020

Short Takes: Home Prices Rise 7.95%

Case Shiller 20-City home price index reports 7.95% year-over-year appreciation as of October 2020

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