Ep. 109 - Investing in a Dislocated Market
Manage episode 423107316 series 3579397
Investing in a Dislocated Market
Guest: Rick Courtney - CEO of Essential Realty Partners
Rick Courtney from Essential Realty Partners discussed the concept of a dislocated market," which occurs due to financial system stress that causes mispricing of assets.
Increasing interest rates have caused significant distress in the marketplace and shifted the need for organizations to hedge their debt.
The shift has caused a shockwave among organizations whose budgets did not anticipate the magnitude of change, while also creating negative leverage situations for multifamily operators.
In order to prepare for future capital stacks, it is important for organizations to take into account worst case scenario sensitivity analysis in order to mitigate downside risk.
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