Yields on commercial mortgage bonds near 11%

Landlords have begun surrendering office buildings to lenders

Many consider it the start of a reckoning for the estimated $20.7 trillion commercial real-estate market, likely its biggest test of confidence since the 2007-2008 global financial crisis.

Brian Lane, the Well Fargo Investment Institute’s lead analyst for private credit, pointed to a $1 trillion “wall of worry” as a wave of commercial real-estate loans come due through the end of 2024 (see chart), in a Monday client note.

The balance balloons to about $2.5 trillion through the end of 2027.

Saira Malik, Nuveen’s chief investment officer, said that “nonoffice” commercial mortgage-backed securities that currently offer 10.6% yields look attractive

MarketWatch 24 July 2023 

https://www.marketwatch.com/story/the-1-trillion-wall-of-worry-for-commercial-real-estate-that-spirals-through-2027-81659671

Bank Regulators Urge Flexibility in Commercial Real-Estate Loan

WSJ 24 July 2023

https://englundmacro.blogspot.com/2023/07/bank-regulators-urge-flexibility-in.html