Financial Times – Bank losses worldwide reignite fears over US commercial property sector
THE FT SAYS Mounting losses from banks in the US, Asia and Europe have rekindled concerns about weakness in the US commercial property market, a sector that has been under pressure from lower occupancy levels and higher interest rates.
Regional US lender New York Community Bancorp on Wednesday revealed it had taken large losses on loans tied to commercial property, while Japan’s Aozora Bank and Deutsche Bank on Thursday warned about the risks from their exposure to US real estate.
The losses mark the latest fallout from the US commercial property market’s dual problems of fewer people working in offices since the pandemic and more expensive borrowing costs.
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