Policymakers calling the roughly $1 trillion of commercial real estate debt coming due this year “manageable” may regret it.
As Bloomberg markets live reporter and strategist, James Crombie details below, if defaults topple hundreds of US banks — as the pessimists predict — the impact on markets and the economy will be tumultuous.
The commercial real estate debacle is only expected to escalate. Asked whether the stress will worsen and hurt banks over the next 12 months, about three quarters of respondents to a recent MLIV Pulse survey said yes.
