The Financial Times this morning (as well as other outlets) are reporting a growing concern within the real estate sector.
Some US banks are preparing to sell performing commercial real estate loans at a discounted price, even if borrowers are up to date on their repayments. The fact that the loans are performing indicates a relatively hasty desire to exit. It also indicates a determination to reduce their exposure to the unstable commercial real estate market.
The willingness of these lenders to incur losses on performing real estate loans follows warnings about the asset class being the next area of concern after recent turmoil in the US regional banking industry. Market participants are increasingly discussing banks' interest in selling loans, with more conversations on this topic than in the past decade, according to Chad Littell, an analyst at CoStar, a commercial real estate research company (first reported by the Financial Times).
HSBC USA is reported ...
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