TY - JOUR
T1 - Shadow banking in Asia
T2 - Foreign versus domestic lending to real estate projects
AU - Cumming, Douglas
AU - Fleming, Grant
AU - Liu, Zhangxin (Frank)
PY - 2018/6/1
Y1 - 2018/6/1
N2 - We compare the types of loans and their rates of returns for domestic versus offshore small and mid-sized private real estate credit funds. The data indicate offshore private credit funds issue smaller and subordinated loans to residential projects. Offshore lenders prefer projects in developed Asian markets, and obtain higher rates of return even after controlling for other things such as loan size, seniority, and borrower location. Our findings suggest the presence of pronounced segmentation across real estate lending markets in Asia as offshore lenders are not a substitute for domestic capital.
AB - We compare the types of loans and their rates of returns for domestic versus offshore small and mid-sized private real estate credit funds. The data indicate offshore private credit funds issue smaller and subordinated loans to residential projects. Offshore lenders prefer projects in developed Asian markets, and obtain higher rates of return even after controlling for other things such as loan size, seniority, and borrower location. Our findings suggest the presence of pronounced segmentation across real estate lending markets in Asia as offshore lenders are not a substitute for domestic capital.
KW - Alternative assets
KW - Performance
KW - Private debt
KW - Real estate
KW - Shadow banking
UR - http://www.scopus.com/inward/record.url?scp=85043313147&partnerID=8YFLogxK
U2 - 10.1016/j.ememar.2018.02.007
DO - 10.1016/j.ememar.2018.02.007
M3 - Article
AN - SCOPUS:85043313147
SN - 1566-0141
VL - 35
SP - 137
EP - 147
JO - Emerging Markets Review
JF - Emerging Markets Review
ER -