SOURCE: marcus evans

marcus evans

August 14, 2012 15:54 ET

Macroeconomics and Commercial Real Estate - The Importance of Having a House View on Both Markets to Be Addressed at marcus evans 6th Annual Risk Management for CRE Conference

CHICAGO, IL--(Marketwire - Aug 14, 2012) - One of the biggest reasons for bank failures during the recession was failure in Commercial Real Estate portfolios. Loan standards spiralled out of control and banks were unprepared for the crash that followed. The U.S. CRE market is sluggishly growing and multi-family has been steadily improving; however, there is scepticism about its sustainability. The U.S. CMBS market is slowly improving as well but faces a significant amount of loans from 2007 that are maturing. As the U.S. CRE market slowly continues to make progress, banks are worried about managing their portfolios appropriately to avoid loss and are seeking out the best ways to deal with the issues that arose from the downturn.

Having a view on current macroeconomic trends is critical when evaluating the current status of the commercial real estate market. "The real estate market does not operate in a vacuum. It is essential to have a view on how macroeconomic events affect the relevant real estate markets, both directly through trade and growth and indirectly through the financial markets. The analysis of a great number of analysts has been incorrect over the past few years. Over optimistic macroeconomic forecasts and a lack of understanding of negative feedback loops in the financial industry have certainly played their part in this," said Hubert Roslund, Managing Director, Head of Strategic Portfolio Management at the Royal Bank of Scotland Non Core Real Estate and speaker at the upcoming 6th Annual Risk Management for CRE Conference, September 11-12, 2012 at the Millennium Knickerbocker Hotel in Chicago, IL. 

The importance of having an understanding of current macroeconomic trends and how they affect commercial real estate expands across the United States and abroad. "Macroeconomic events in other regions, especially of the magnitude seen over the past few years, will impact commercial real estate markets in the United States as well. De-coupling is rare and it is important to have a view on events in other key economic regions. It is important to assess how your deals and portfolios would be affected by expected events," said Roslund.

The marcus evans 6th Annual Risk Management for CRE Conference will provide banks with the tools, solutions, and strategies to effectively quantify and mitigate risk in their CRE portfolios while keeping in compliance with all regulation and looking toward the future as the economy and the CRE market continues to grow. "De-coupling is rare and it is important to have a view on events in other key economic regions. Remember that all transactions are not equally affected by any given scenario. It is important to assess how your deals and portfolios would be affected by expected events," said Roslund.

Hubert Roslund will be leading the session, "From Global Macro Economics to Micro Portfolio Characteristics - The importance of having a house view and applying it to your portfolio (Lessons and examples from recent events in Europe, U.S., and Asia-Pacific)" on September 12, 2012 at 9:00 AM at the marcus evans 6th Annual Risk Management for CRE Conference.

For more information regarding this conference and to register, please visit http://www.marcusevansch.com/CRE2012_Interview_HubertRoslund

Hubert Roslund is a senior banking and risk professional, with extensive experience in global banking. Hubert has spent the past 12 years at The Royal Bank of Scotland ("RBS"), both on the business and risk side. He is currently Managing Director, Head of Strategic Portfolio Management and a member of the senior management team within RBS Non-Core Real Estate. Hubert is a multi-lingual economist and has also worked as a Sovereign and Bank analyst prior to joining RBS.

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