Banking and CRE Distress

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 Include:

• 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