The loans coming due are at low interest rates - 3% - they must be taken out by loans at 7%-8% - this negative arbitrage is bad in 2024 and worse in 2025.
2. Commercial property prices have dropped due to comparable worry free investments like bonds becoming more appealing
3. Banks can only restructure/write down a certain % of loans before the FDIC takes action and they have restrictions put on them or are shut down. You are looking at almost all commercial loans being refinance every 5 years. So about 40% of all commercial real estate loan...
Sea el primero en responder a esta comentario .