Banking and CRE Distress
Risk of Banking Sector Disruption From
Commercial Real Estate Defaults is Low
Following the failures of Silicon Valley Bank and Signature Bank, concerns have arisen around small banks holding high concentrations of commercial real estate debt. Outside of a few challenged segments, however, commercial assets have generally performed well. Much of the small bank CRE debt is also not set to mature this year. These factors temper risks of a banking disruption stemming from CRE default.
Key Features Include:
- Overview of current CRE distressed sales and loan default dynamics
- Breakdown of outstanding CRE debt by property type and holding institution
- Implications of fixed vs. floating rate borrowing terms on CRE loan performance