Regional banks control nearly 1/3 of US commercial mortgages, but hidden risks in CRE are 4X higher than reported. 08 is going to look bullish in comparison.

Regional banks now hold almost one-third of all U.S. commercial mortgages and a majority of non-owner-occupied CRE, and “latent distress” is about 4X larger than what current delinquency rates imply.🧵

CRE: ~ $4.8 T
Consumer debt: $5.58T
(auto: $1.66T, Student loan: $1.65 T)