| Vacation Homes Boom in Spain May Bust as Banks Recoil (Update1)
March 20 (Bloomberg) -- Vacation home prices in Spain, a leading indicator of Europe's property market, may face a slump that's worse than the real estate decline in the U.S., based on the loan terms banks are imposing on developers. Property magnate Fernando Martin, the former Real Madrid soccer chairman, and Barcelona-based Promociones Habitat SA are paying five times more to borrow than U.S. developers such as Centex Corp. in Dallas, according to data compiled by Bloomberg. Even UAL Corp.'s United Airlines, which was bankrupt last year, pays a lower risk premium on its loans. ``Banks are imposing terms on real-estate firms similar to those for defaulted loans,'' said David Malpica, who helps manage $5.6 billion of real-estate and distressed debt assets in Europe and the U.S.
Dreman, Pioneer Investments Scoop Up Bank Shares (Update1)
March 12 (Bloomberg) -- Just when it looked like the four- year boom in financial companies' shares was over, some of the world's biggest investors are betting the best is yet to come. Dreman Value Management LLC, Pioneer Investments and Societe Generale SA say they're unconvinced surging defaults on so-called subprime home loans, or those made to the riskiest borrowers, will unravel the banking industry. They expect profits at the largest firms to keep growing, bolstered by fees from corporate and private-equity takeovers. The prospect of lower U.S. interest rates may also help support lending. Bank stocks last week traded at the cheapest prices relative to earnings in a decade after being hit the hardest in a stock rout that erased $3.3 trillion in global market value.
People on the Move
Brent Howe CPA has joined Aleut Management Services as chief financial officer. He has experience in accounting and government contracting. Ken Cluck has joined Re/Max Properties Inc. as a broker associate in the north office. He previously spent 10 years in the pastoral ministry. Linda Southhard has joined Re/Max Properties Inc. as a broker associate in the Monument office. She is a member of the Pikes Peak Association of Realtors and has won awards for buyer specialization. Lucas Jensen has joined Re/Max Properties Inc. as a broker associate in the south office. He is a former sales manager. Kelly Hipolito has joined Aspen Diversified Industries as the director of Workout Ltd. She has experience in human resources and child labor law.
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