I work for a large developer, we do projects all over western North America and work with tonnes of lenders.
Since the spring banking crisis a couple of our US lenders have been late funding our regular draws while other lenders have been ticking along like clock work.
The worst has been HSBC, they simply ignore us for weeks on end and then send cryptic long emails with “issues they need corrected” before they can forward the funding. We resolve the issues quickly (they’re never real issues..), they ignore us for a couple more weeks and then send another odd request ex. How do these numbers add up, can you send another updated certificate of insurance, etc..
These seem like very obvious delay tactics (I would do the same if I had cashflow issues and couldn’t admit it). I get the sense that they have insufficient collateral to meet their funding needs.
Can anyone comment on what their exposure to long bonds and commercial real estate might be like? I’m thinking about loading some big puts on these clowns… smells like they’re in trouble but the market hasn’t priced it in…