Here’s one of the scariest sentences you will (in all likelihood) read today:
That’s from the latest Congressional Oversight Panel (COP) report, and it is all about — you guessed it — commercial real estate in the US. The whole thing is worth a read but here are some quick excerpts:
That last chart should give you an idea of where the Panel is going with this:
Read on for everything you ever wanted to know about US commercial real estate financing, securitisation, loan work-outs, and an interesting compaison with the real estate bust of the 1980s.
Related links:
Shadow bank losses – FT Alphaville
A different government view on CMBS – FT Alphaville
Delinquent CMBS, the `C’ stands for climbing – FT Alphaville
The feedback loop of commercial real estate, regional banks and unemployment – FT Alphaville