Skip to content
Sign In Subscribe
Financial Times — World — Commercial Real Estate — Property Sector — Us & Canadian Companies — Us Banks

US banks prepare for losses in rush for commercial property exit

US banks are preparing to sell off property loans at a discount even when borrowers are up to date on repayments, in an effort to reduce exposure to the teetering commercial real estate market. The willingness of some lenders to take losses on so-called performing real estate loans follows multiple

1 min read
  • US banks are preparing to sell off property loans even when borrowers are up to date on repayments.
  • This is a sign of their determination to reduce exposure to the teetering commercial real estate market.
  • The willingness of some lenders to take losses follows warnings that the asset class is the ‘next shoe to drop’.
  • Banks are changing the way they account for loans by switching their designation to 'available for sale' from 'hold to maturity'.
  • The moves to offload the loans come as executives and regulators raise alarm bells over the health of the commercial real estate sector.
US banks prepare for losses in rush for commercial property exit
Lenders prepare to offload debt at a discount even when borrowers are up to date on payments
Financial TimesJoshua Chaffin

More in World

More from Financial Times

Latest