by Moe Bedard
U.S. banks are at risk of sizable new loan losses, particularly on commercial property, and some banks may not have sufficient capital to fully cushion against losses, a Federal Reserve official said on Monday.
Some large regional and community banks that have built up unusually high concentrations in commercial real estate loans will be “particularly affected” [...]
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by Moe Bedard
Deteriorating commercial property markets are putting commercial mortgage-backed securities to their first critical structural test. Failing it could keep financing tight and property values suppressed for years.
Since the 1990s, the CMBS practice has successfully financed commercial landlords by selling their loans to investors. But the engineers behind CMBS never contemplated that a bad recession, high [...]
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