Basel Endgame will smooth real estate cycles, create opportunities for non-bank lenders

Basel 3.1 reforms will lead banks to apply high haircuts to unsustainably high property values and adjust mortgage risk weights to better differentiate between low-risk and high-risk loans.Speakers: Alexander Zeidler, VP-Sr Credit Officer at Moody's Ratings; Guillaume Lucien-Baugas, VP-Senior Analyst at Moody's RatingsHosts: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings; Danielle Reed, VP-Senior Research Writer at Moody's RatingsRelated Research:Basel 3.1 will reduce risk of boom and bust property cycles, boost private credit marketRising interest rates will weaken commercial property values and raise refinancing riskExplanatory comment – Haircuts smooth CRE values through the property market cycle