The European Central Bank cut interest rates for the first time in five years earlier this month, with the Bank of England and Federal Reserve Board widely expected to follow suit before the end of the year. With market expectations for central banks to reduce interest rates in line with lower inflation, will this ease the pressure faced by #commercialrealestate borrowers? Sterling Technology board advisor Harry Iles takes a look under the bonnet of the non-performing loan market. For more #realestate and M&A insights follow Sterling Technology | Virtual Data Rooms on LinkedIn or visit www.sterlingvdr.com to find out how the Sterling Technology team can help make your next NPL deal a great deal better. #mergersacquisitionsdivestitures #privateequity #cre
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This is a great graphic highlighting the commercial real estate exposure of the top U.S. banks. The average range for the Regionals is between 10% and 15%.
Major U.S. Banks With the Most Commercial Real Estate Exposure
posts.voronoiapp.com
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US banks could get slammed with another $160 billion in losses as commercial real estate risks its biggest crash since 2008 Commercial real estate could suffer its biggest crash since the Great Financial Crisis. That's bad news for banks, which could see $160 billion in additional losses. #realestate #property #commercial #officespace #mortgage #therealtynews #loans #interestrates #investors #investments #realestatedevelopers #realestateagents #therealtynews #data #report https://lnkd.in/g3hzzN3H
US banks could get slammed with another $160 billion in losses as commercial real estate risks its biggest crash since 2008
businessinsider.in
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Retired - Market Insights Leader in the Commercial Real Estate Industry - now Board Member, avid Volunteer and Mentor.
According to U.S. academics, the commercial real estate sector is at risk of seeing its biggest crash since 2008, and that could slam U.S. banks with up to $160 billion in losses. #commercialrealestate #cre #defaults #inflation #mortgage #loans #investment #banks
US banks could get slammed with another $160 billion in losses as commercial real estate faces its biggest crash since 2008
businessinsider.com
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How is CRE concentration measured and evaluated by regional banks? According to public guidelines from the FDIC, CRE holdings as a proportion of total risk-based capital above 300% may indicate a lender is exposed to significant risk of CRE concentration. Check out the article for more details. #Distresseddebt #CRE #NPLs #commercialrealestate https://lnkd.in/e6aGX_4R
Real estate pain for US regional banks is piling up, say investors
reuters.com
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President @ Essex Capital Group | Debt Capital Investment Banking Partner @ Essex Partners | Private Equity
It’ll be interesting to see how the banks handle their portfolios that are clearly being negatively impacted by higher interest rates… https://lnkd.in/eQurTjgS
Loan Modifications Then and Now – Extend & Pretend
trepp.com
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High interest rates and plummeting demand have put the commercial real estate sector on the edge of collapse. As overexposed regional banks teeter on the brink of crisis, studies show large banks are also at risk.
Banking System Grows More Unstable
americanhartfordgold.com
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Reformed CRE Broker Helping the Capital City of Trees Make Sense of Complex Real Estate Problems /\/\/ Professional Herder of Cats \/\/\
Ohhh this is interesting...now the higher interest rates are starting to affect banks that have large portfolios of its assets yeilding 3% from the ZIRP (Zero Interest Rate Policy) era ⤵ 1️⃣ BofA has an $840 billion securities portfolio that's still yielding less than 3% 2️⃣ Majority of BofA mortgage portfolio, which includes a lot of mortgages priced at less than 3%, has a projected average life of more than 15 years 3️⃣ BofA is also charging off more than $1 billion per quarter in bad loans. 4️⃣ All the same, it's hard for any bank to make money if its assets are yielding 3% while its funding cost is north of 6%. 😲 Per Independent Bank analysts @christopher whallen "If your asset returns are below peer and your credit losses are above peer, then where does that leave you? In a very bad place."
Axios Markets - Bank of America's interest-rate risk
axios.com
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The cut to the 5-year LPR is likely aimed at supporting the recovery of the property market, and could improve affordability for buyers by lowering the mortgage rates. However, banks were already facing record low net interest margins as of the third quarter of 2023, and have been tasked with extending loans to support troubled property developers. The 5-year LPR cut could add further pressure to Chinese bank margins. #china #propertymarket #mortgage #banks #interestmargin
People’s Bank of China surprised markets with a 25bp cut to the five-year loan prime rate
think.ing.com
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New in #RiskIntelligence: After adjusting bank CRE concentration ratios for banks’ unrecognized mark-to-market interest rate losses, data shows even modest CRE loan stress losses could test the solvency of hundreds of banks. https://bit.ly/3zjd3qw #financialrisk #realestate
Commercial Real Estate and Bank Systemic Risk
garp.org
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Supply Chain Consultant & Advisor/Freelancer. In a time of disruption and risk. My profile is at my ABOUT section and has other info about me. Real supply chain experience. Been there. Seen it. Done it. Semi-retired.
Real estate and pain for regional/small banks? Will this roil into interest rates and inventory and other investment needs?
Focus: Real estate pain for US regional banks is piling up, say investors
reuters.com
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