Billionaire investor Howard Marks rang the alarm on commercial real estate in what he labels as"one of the biggest worries" US banks face today. , the Oaktree Capital Management co-founder warned of a wave of mortgage defaults that could add stress to the US banking sector.
"Developments along these lines certainly have the potential to add to whatever additional distress materializes in the months ahead," he added. has become investors' newest concern thanks to higher interest rates, tighter lending standards – part of the fallout from the turmoil that hit banks in March – and work-from-home trends. That's a problem for smaller and mid-sized US banks which have high commercial property exposure.
"Higher interest rates call for higher demanded capitalization rates , which will cause most real estate prices to fall," Marks said."The possibility of a recession bodes ill for rental rates and occupancy, and thus for landlords' income," he added.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: Reuters - 🏆 2. / 97 Read more »
Source: CNN - 🏆 4. / 95 Read more »
Source: chicagotribune - 🏆 8. / 91 Read more »
Brace for more banking shocks, Fed is in a 'twilight zone': FidelityBrace for more banking shocks with the Fed in a 'twilight zone' where it can't tame inflation without threatening financial stability, Fidelity warns Inflation will remain higher because of bringing jobs back from abroad. Fed needs to stop the absolute nonsense that they will get 2% inflation That world is over now
Source: BusinessInsider - 🏆 729. / 51 Read more »