Real estate pain for US regional banks is piling up, say investors
==========

Investors are concerned about the exposure of US regional banks, particularly New York Community Bancorp (NYCB), to commercial real estate (CRE) loans. NYCB's recent earnings release, which revealed real estate losses, led to a 60% drop in its shares. Short-seller William C Martin of Raging Capital Ventures believes that as long as interest rates remain high, banks will continue to face problems with CRE loans. The collapse of Silicon Valley Bank in 2023 triggered a regional banking crisis, and investors fear that more pain is on the horizon for banks with office and multifamily property loans. The KBW Regional Banking index is down around 11% since NYCB's announcement. Delinquency rates on commercial mortgage-backed securities (CMBS) are expected to rise in 2024, and roughly $1.2 trillion in commercial mortgages are set to mature this year and next. Some investors are shorting banks with high concentrations of real estate loans, including NYCB, OceanFirst, and Valley National. Fitch has warned that if prices decline by approximately 40%, losses in CRE portfolios could result in the failure of a moderate number of smaller banks.

#UsRegionalBanks #CommercialRealEstate #NewYorkCommunityBancorp #SiliconValleyBank #CreLoans #InterestRates #DelinquencyRates #CommercialMortgage-backedSecurities #Cmbs #LoanDelinquencies #Rent-stabilizedMultifamilyLoans

https://theedgemalaysia.com/node/700702