SBB - comment

Capital markets have provided much of the funds used by Swedish Real Estate companies. Comment on Bloomberg refers to the pressure off the banks’ balance sheets being much less than in the 1990s real estate crisis. We still doubt the authorities will be content for banks at <40% LTV, causing the collapse of a company holding so many municipal and residential assets. SBB needs to reach an agreement with its banks now, whilst the government will continue to influence the process.