Risk of Banking Sector Disruption Driven by Commercial Real Estate Defaults Remains Low

04.14.2023
| Buying

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:

  • 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

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