TSX:BPO.PR.A - Post by User
Comment by
Carenaon Jan 22, 2024 5:49pm
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Post# 35839821
RE:BPO Credit Risk
RE:BPO Credit RiskHi there,
I totally agree with your line of reasoning, except Carney has only recently come in, mainly on the energy transition side. I think it is Bruce Flatt's reputation on the line and he will put things right. Having said that, having Carney around is definitely not a negative. From a central bank and political perspective.
I would also say, I don't think BPO is a too big too fail thing in Canada. I do think they might be a too big too fail thing for non-Cdn banks, who, by the way, do not want to take these assets back on their own balance sheet and will work to keep things the way they are. Remember, BPY has like $80 billion in assets in their books and I think approximately another $200 billion of real estate is being managed by BAM for clients that BPY's CEO, Kingston, oversees. Yikes.
In the meantime, the financials of BPY are a mess and will take time and patience. The one thing going for all us BPO shareholders, is BN will be given lots of time and seems to have plenty of capital on their side.
Hopefully this helps,
Carena