Reported 11 months ago
Moody's has issued a warning to 6 regional banks in the US as high interest rates are intensifying the delinquency rate of commercial real estate loans. The credit rating agency has placed these banks on a negative outlook, citing significant exposure to commercial real estate loans. Factors such as economic slowdown, preference for remote work post-pandemic, and pessimism in the commercial real estate market are further complicating the situation. However, alternative asset management companies like Blackstone see opportunities, with discussions underway for potential acquisitions of assets and loan portfolios from these banks.
Source: YAHOO