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New York & Tri-State  + New York  + Finance  | 

JPMorgan Traders Backing Riskier Real Estate Projects

A group of traders in JPMorgan’s investment bank is underwriting real estate loans that might be too risky for JPMorgan Chase & Co.’s commercial bank group, or even unsuitable for bonds. The underwriting is financing large construction projects, with beneficiaries including Manhattan condominiums, and the American Dream mega-mall in New Jersey.

Traditional lenders have been pulling back from construction loans, as they carry larger risks. They also provide higher yields than a standard mortgage for an occupied building. JPMorgan traders are taking part in potentially lucrative projects, even as the commercial bank is being much more cautious about riskier property financing.

The activity is coming amid increased scrutiny of U.S. commercial real estate. Bank regulators have been warning of a potential bubble following property price surges past their 2007 peak.

Read More at Bloomberg Business

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About Mark El-Rayes

Mark El-Rayes is an award winning designer and photographer from Beirut, Lebanon. El-Rayes has over 15 years in the design industry, 5 years of which he served as a Mass Communication Specialist in the United States Navy at Naval Air Station North Island, Navy Public Affairs Support Element - West (NPASE). El-Rayes is a full-stack developer, seo specialist, photographer, and artist.

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