Independent thinking for complex markets and current events
🚨Bloody hell: The delinquency rate on US commercial mortgage-backed securities (CMBS) for offices SURGED to 10.7%, the highest in 11 YEARS. Office CMBS delinquencies have risen even faster than during the Great Financial Crisis. Commercial real estate crisis is getting worse. pic.twitter.com/YK0aIidJWJ — Global Markets Investor (@GlobalMktObserv) December 1, 2024 Sub-prime lenders: 70% DSCR loans …
Many commercial real estate (CRE) loans are set to mature in 2025 and 2026, requiring refinancing for loans that were underwritten when interest rates were at historic lows in 2020 and 2021. As interest rates have significantly increased, the current landscape presents a daunting challenge for refinancing. This situation has raised alarms about the preparedness …
Apart from technical execution, Ortberg identified Boeing’s errors in cost and risk estimation as other reasons for the company’s poor performance on several fixed-price government contracts, including Starliner. “We’re not going to be able to just wave the wand and clean up these troubled contracts,” he said. “We signed up to some things that are …
Polaris Dawn Mission Commander Jared Isaacman and Mission Specialist Sarah Gillis will perform a “stand-up” EVA outside Crew Dragon Resilience to test out new designed EVA suits by SpaceX to validate suit mobility designs, including specially designed hand and foot holds that the crew will use to attempt to maneuver.
C&I lending slowed down in tandem with residential lending during the 01′ Recession and Great Recession and didn’t recover for years. They’re connected/correlated markets. https://www.aei.org/carpe-diem/commercial-lending-has-almost-completely-recovered-from-the-great-recession-and-faster-than-after-2001-recession/ h/t Mrbumboleh
Landlords in the commercial real estate sector are indeed facing a significant challenge with $1.5 trillion of debt maturing by the end of next year. Approximately a quarter of this debt could be difficult to refinance due to higher interest rates and lower property valuations. Regarding multifamily assets, around $95 billion of these properties in …
If it succeeds, Polaris Dawn will be the first non-government mission to perform a spacewalk. But not only that, it’ll do that about 700 kilometres (435 miles) above Earth. To compare: the International Space Station (ISS) orbits Earth at about 400 kilometres, where the… pic.twitter.com/V9eUGo0Yh8 — Civil Learning (@CivilLearning1) August 26, 2024
"The distress rate on commercial real-estate collateralized loan obligations, or CRE CLOs, has soared."@WSJ pic.twitter.com/rTN6wyXjVs — Daily Chartbook (@dailychartbook) August 9, 2024 Q.E in full swing. pic.twitter.com/HF2Kjy19ng — The Great Martis (@great_martis) August 8, 2024
by Mike Maharrey I’ve been watching the commercial real estate (CRE) sector as a potential catalyst for the next financial crisis. So far, it has managed to hold together, but there is still trouble brewing under the surface. The story of one commercial real estate investment by UBS Group is a microcosm of the commercial real estate …
The Olympic Cauldron was lit with a burning arrow on this day at Barcelona 1992. 🔥 pic.twitter.com/niC73Amamd — मैं हूँ Sanatani 🇮🇳 🚩🚩 (@DesiSanatani) July 27, 2024 Thomas Jolly is the man who mocked JESUS (The Last Supper)… The Gay Jewish 42 year old used the largest platform in the world to mock Christianity and …
Deutsche Bank: Deutsche Bank has indeed reported significant losses from its commercial real estate exposure. The bank posted a net loss of €143 million for Q2 2024, largely due to provisions for credit losses and a substantial litigation charge. Blackstone Mortgage REIT: Blackstone Mortgage Trust (BXMT) has cut its dividend by 24% due to rising defaults …
George and Ken discuss the CRE crash and how it’s now spewing into the banking system
via WSJ: U.S. prosecutors are cracking down on commercial mortgage fraud, a growing push that is sending shudders through the $4.7 trillion industry by raising questions about the numbers underpinning major property loans. Regulators and federal prosecutors say that property loans based on doctored building financials and valuations have been rising. This type of fraud …
Some Wall Street banks are quietly offloading their portfolios of commercial real estate loans, hoping to cut their losses. These actions stem from concerns that landlords of vacant and struggling office buildings may not be able to pay off their mortgages. The broader distress in the commercial real estate market is driven by high interest …
Multifamily—which is working through a large pandemic era pipeline—is in the early stages of its downshift pic.twitter.com/CDWLL5rxPO — Lance Lambert (@NewsLambert) June 20, 2024 🏢📉 CRE CLO distress rate hits 9.74% in May, up 114 bps! 📊 Over 36.5% on watchlists. 🤔 What’s your take? #RealEstate pic.twitter.com/ILY3DYO5fB — Kaufman Real Estate & Consulting (@DanielKaufmanRe) June …
https://www.youtube.com/watch?v=WERFY50cJt4 The financial situation in the United States is experiencing a significant change as major banks are selling off assets at an unprecedented rate. This move is caused by the imminent commercial real estate crisis, bad loans, and high interest rates. This situation is not just a financial maneuver but a response to deep-seated issues …
The landscape of US commercial real estate (CRE) is facing unprecedented challenges, with prices plummeting 21% from their 2022 peaks. The latest figures reveal a staggering milestone: the US office vacancy rate has surged to a historic high of 19%, eclipsing levels observed during the financial crises of 2008 and 2020. To put it starkly, …
CNBC: 282 Banks at "risk of failure" from commercial real estate and Fed rate hikes. When the Fed was founded it solemnly swore to protect the dollar. That has morphed into a bailout industrial complex — a "third mandate" — that is increasingly too big to bail out. pic.twitter.com/VMeBe5wmE8 — Peter St Onge, Ph.D. (@profstonge) …
Approximately $929 billion of the $4.7 trillion outstanding commercial mortgages held by U.S. lenders and investors are set to mature in 2024, marking a 28% increase from the $729 billion that matured in 20231. Additionally, regulators have identified the near $6 trillion pile of outstanding commercial real estate loans as a top threat to the financial system …
Big lenders are more exposed to commercial real estate than it might seem at first glance, a study says. In addition to lending to property owners, big firms also offer indirect lending to REITs, raising their exposure by about 40%. Wall Street has been worried about distress in commercial real estate amid high interest rates. …
For the first time since the financial crisis, top-rated bonds backed by commercial real estate debt are suffering catastrophic losses. Investors in a $308 million note tied to the 1740 Broadway building received less than three-quarters of their original investment after the loan sold at a steep discount, marking a grim milestone in the post-crisis …
by confoundedinterest17 I said over and over again, Bidenomics will be a drag. Larger cracks are appearing in the US commercial real estate market at a time when uncertainty around the regional bank industry flashes red. The latest report from real estate data provider ATTOM shows CRE foreclosures topped 625 in March, up 6% from February and …
The cracks in the economy are getting bigger. It’s only a matter of time before more banks fail. Article is below. The commercial real estate market is starting to buckle under the weight of higher interest rates and remote work. There were 625 commercial real estate foreclosures in March, up 6% from February and 117% …
These numbers are so large & offices cost so much to maintain & lease up I have no idea if they will ever make $ no matter how much discount they get. It really is the worst asset class IMO, and I've held that opinion pre-pandemic. It's just a prestige thing cuz most are dtown …
The precipitous decline in the value of a prominent Class A office tower, 750 Lexington in NYC, sends shockwaves through the commercial real estate sector, with Morningstar reporting an alarming 83% decrease in valuation since 2015. The transfer of a $130M loan tied to the building into special servicing due to default further exacerbates concerns …
via wallstreetonparade Last August, the Journal of Finance published a study by two finance professors that should have made bold headlines in every major business newspaper in America. It didn’t – suggesting that Americans will eventually learn about Wall Street’s chicanery in commercial real estate the same way they learned about Wall Street’s subprime residential mortgage scams after …
Office Vacancy Rates expected to hit highest level in history during Q1 2024 pic.twitter.com/kU48krStdE — Win Smart, CFA (@WinfieldSmart) April 2, 2024 Rising Commercial Real Estate Delinquency Rates Delinquency rates for commercial real estate have risen during each of the past three recessionary periods, and they are currently on the rise again. This chart shows …
“#China: Bank of Communications reported that its property bad loan ratio jumped to 4.99% at the end of last year from 2.8% a year earlier. Industrial & Commercial Bank of China saw its bad loans from residential mortgages rise 9.6% to 27.8 billion yuan. We know that the property sector (as outlined in a 2021 …
