The Other Side of Leverage

[wheatking16]

I published Part 1 of The Margin Call series, Understanding Farmland Value Sensitivity, where I explore the other side of leverage.

You might find it interesting

or

You might not.

The math surprised me, though.

[url]https://www.grainreport.klarenbach.ca/p/the-margin-call-part-1-understanding-farmland-value-sensitivity[/url]

[Templeboy]

Good Piece!

It's happening right now in real estate in Vancouver and Toronto. Corrections are just like the block buster movies, they take longer to get out into the country.
Sub prime and private credit are in deep trouble. Covenants are stricter on lower rated debt, so they fail faster. As soon as covenants are breached expect a 2 to 5% increase in credit costs, might be double the current rates.