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Saturday, July 27, 2024

US Office Loan Pain Is Only Starting to Ramp Up

 

  • More than $94 billion of US CRE is currently distressed
  • Pimco says lenders will ‘face the music’ as loans mature

Any hopes that falling borrowing costs would stem the pain from the US office downturn were swept away this week.

Deutsche Bank AG set aside more money for souring US commercial real estate loans, while a Blackstone Inc. mortgage trust slashed its dividend. New York Community Bancorp’s shares then plunged the most since the last bout of CRE-related turmoil in March after provisions for losses came in at more than double the average expected by analysts.

https://www.bloomberg.com/news/articles/2024-07-27/us-office-loan-pain-is-only-starting-to-ramp-up-credit-weekly

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