- Yields on American government bonds have risen to their highest level since 2009.
- Rising bond yields threaten financial stability and squeeze various markets.
- Commercial property owners face considerable distress as interest rates rise.
- Troubled commercial property debt of $626bn will come due between 2023 and 2025.
- Banks with exposure to commercial real estate are at risk of downgrades.
High bond yields imperil America’s financial stability
Rising bond yields in the US threaten financial stability and squeeze various markets, particularly commercial property. Troubled debt of $626bn is set to come due between 2023 and 2025.