The ‘Greatest Real Estate Crisis’ Since 2008 Starts to Hit Banks
NYCB was downgraded to junk by Moody’s, PBB and Aareal saw bonds plummet on their US CRE exposure
A logo on a sign outside the headquarters of Deutsche Pfandbriefbank in Garching, Germany.
Photographer: Michaela Stache/BloombergWelcome to The Brink. This is Luca Casiraghi in Milan and Libby Cherry in London, where we looked at banks taking a hit from commercial properties’ falling valuations. We also have news on Office Properties, KKR REIT, Austrian tycoon Cevdet Caner and US airline Spirit. Follow this link to subscribe. Send us feedback and tips at debtnews@bloomberg.net or DM on X to @lcasiraghi.
The collapse of Credit Suisse in March 2023 seemingly marked the nadir of a flash banking crisis that began only a few weeks earlier with the downfall of Silicon Valley Bank and Signature Bank in the US. But what looked like a momentary blip that authorities on both sides of the Atlantic had managed to contain is now increasingly looking like the opening chapter of a much longer saga.