Commercial real estate could be where the next economic shock comes from. Here's what Elon Musk, Bill Ackman, and 5 others have predicted.
"This is the real problem," Musk
."Many cities have high office vacancy rates. Mortgage portfolios are at risk too if housing prices drop significantly.""A lot of the construction lending and real-estate lending and small business lending is done by these smaller banks. Commercial real estate is a major part of our economy. If these banks lose all their capital and deposits, that will cause a meaningful slowdown,""Commercial real estate was really an attractive asset on the way up," Chanos said.
"There are so many moving parts now that are below that surface that will impact valuations that you might not be aware of," he added. "Commercial real estate [is] widely seen as next shoe to drop as lending standards for CRE loans to tighten further," Bank of America's Michael Hartnett"We expect about 21% of commercial mortgage-backed securities outstanding office loans to default eventually, with a loss severity assumption of 41% and forward cumulative losses of 8.
"We haven't seen smooth repricing or terribly transparent repricing of the mortgages and commercial-real-estate lending that is held in nonbank financial intermediaries," Posen said.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Bill Ackman warns AI pause will help 'bad guys' as Elon Musk urges haltBill Ackman warns pausing AI development will help the 'bad guys' after Elon Musk and others call for six-month halt
Consulte Mais informação »
Bill Ackman says AI-ChatGPT pause gives ‘bad guys’ time to catch up“It would have been a mistake to delay the Manhattan Project and let the Nazis catch up,” he added. “I don’t think we have a choice.”
Consulte Mais informação »
How the FDIC has set a 'baseline' for troubled commercial real estateAlso, moving money for interest, stocks, AI and an income tax problem.
Consulte Mais informação »
California cuts short commercial Dungeness crab season to protect whalesFish and game officials are concerned that humpback whales can get caught in the vertical ropes connected to heavy commercial traps. They can drag the ropes around for months, leaving them injured, starved or so exhausted that they can drown.
Consulte Mais informação »
Matt Damon Shares Story Behind His Crypto Commercial – Featured Bitcoin NewsMatt Damon has shared how he got involved in creating a cryptocurrency commercial with crypto trading platform Crypto.com.
Consulte Mais informação »
California Requiring Half of New Commercial Trucks to be Electric by 2035The Biden administration cleared the way Friday for California's plan to phase out a wide range of diesel-powered trucks.
Consulte Mais informação »