BlackRock Sees ‘Huge Opportunity’ in Cast-Off Banking Assets
- Higher rates, new capital rules are expected to spur sales
- Regional banks are pressured to shrink their balance sheets
BlackRock headquarters in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
BlackRock Inc. is poised to become a bigger buyer of assets that banks unload to improve their capital and liquidity, after concluding that the industry faces years of upheaval brought on by high interest rates, stringent new regulations and possible consolidation.
Gary Shedlin, a vice chairman of the world’s biggest money manager, is leading efforts to position BlackRock funds as sources of capital for banks looking to sell asset-backed securities or large portfolios of consumer, commercial or residential loans.