AB CarVal eyes US$50bil opportunity in high-risk property lending

The New York-based firm is stepping up financing in the space that yields double-digit returns. — Bloomberg

NEW YORK: A Wall Street alternative money manager is ramping up lending in an area of real estate that’s considered too risky even by some private credit players.

As traditional banks de-risk their books under regulatory pressures and cut back on lending, AB CarVal Investors LP is seeing an opportunity in the residential sector, including the residential development sector that’s been starved of funds.