Banker says Capital Markets More Challenging Than Year-Earlier

Jason Kushner, managing director, capital markets at PNC, participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

Kushner described the current state of the capital markets as “unsettled.” The economy, real estate fundamentals, capitalization rates, institutional interest in real estate and the banking sector are all healthy. On the other hand, rapid technological change, an unprecedented interest rate environment and tax reform changes “have left investors on the edge of their seats,” he said.

“It’s clearly a much more challenging environment than we were in last year,” according to Kushner.

As for the bank lending environment and the appetite for risk, Kushner said PNC is “cautiously optimistic.” The bank is paying attention to pricing, structure and sponsorships, he noted. “Our risk box really hasn’t changed.”

Kushner added that as for the overall economy, “it’s very difficult to pinpoint whether we’re in the sixth inning or the ninth inning - we just don’t know.”