Kyle Bass Says US Banks to Lose $250 Billion in Office Holdings

WATCH: Kyle Bass says “I think the banks in the US will lose $200 billion, $250 billion” in the office sector.

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By Shelly Hagan and Tom Mackenzie

September 11, 2023 at 3:59 PM UTC

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Kyle Bass said the US banking industry will lose hundreds of billions of dollars from exposure to the office market amid shifting workplace trends and elevated interest rates.

“Banks in the US will lose $200, $250 billion in office over time here,” Bass, founder of Hayman Capital Management, said in an interview with Bloomberg TV Monday. “And there’s about $2 trillion of equity in the banks so it’s like a 10% hit to US banking equity.”