Finally, the cops came, in the form of dire dispatches from emerging financial markets around the world. The conduit market went quiet. The rave was over, for the time being. Looking back, although nobody wanted the party to end, the circuit breaker of public markets kept excesses largely in check for both debt and equity, and thus few party-goers have hangovers. Even though the respective percentages of total debt and equity markets exposed to daily capital market scrutiny are still quite modest, it is enough such that we live in a new reality.
Banks are still the main place to get recourse construction money and mini-perms.
Mostly, theres been a rationale response. But the speed bump of last fall has had an impact. Part of the reaction is prudent risk management, part a result of looking over their shoulders at worry-wort regulators. Life insurance companies. Life insurers have found this market difficult lately.