Welcome to Capital Markets Today. I will be producing a series of podcasts that help explain to potential investors why distressed debt, specifically, distressed real estate or (REO) and mortgage loans (NPL) may be a good investment to include in your investment portfolio. There are many issues brewing that could trigger increased REO and NPL opportunities besides the obvious Covid related problems being discussed in the news daily. Today I will focus on one issue that could cause problems for decades to come.
Currently, most of us are focused on the immediate impact of the Covid crisis, the shut down, unemployment, interest rates and government stimulus. All these issues have caused the immediate scenario that we are operating in today, but what is the long-term impact? And does this long-term impact create a long-term opportunity for NPL and REO buyers?
As most of the news talks about enforcing mandatory lockdowns and handing out money to citizens, there has been a problem that has been rapidly expanding in the background. In fact, this problem might create a crisis that will not just be felt in the next week, the next month, or even the next year, but it might be felt for several decades to come.