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Global Contagion Risk Growing from Rising CRE Losses, Led by Office
Credit trends in global commercial real estate (CRE) loans will continue to deteriorate through 2025, which will impact commercial mortgage backed securities (CMBS), banks, life insurance companies, non-bank financial institutions and public finance issuers, Fitch Ratings says. Losses should remain within ratings expectations for most issuers, given the wide dispersion of risks within the financial system. Floating-rate loans carry the highest credit risk given most CRE sectors have shed value over their typical maximum five-year term. Weaker issuers with higher concentrations of riskier exposures could face ... (full story)