When the big American banks report earnings this month – starting with JPMorgan and Citi last week – investors will nervously scour them for signs of commercial real estate pain.
After all, seemingly everybody from the US Federal Reserve on down has warned of a CRE reckoning in recent months. That is partly because rates have jumped 500 basis points in the past 18 months, and some $US270 billion ($395 billion) of US CRE loans come due this year, according to Trepp (or $US1.5 trillion in the next three years, according to Morgan Stanley).
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Financial Times
Gillian Tett is chair of the editorial board and editor-at-large, US of the Financial Times. She writes weekly columns, covering a range of economic, financial, political and social issues.
