Real Estate

Big Banks Are Trying to Dump Commercial Real Estate Debt As Pressure Mounts

  • Big banks are trying to dump commercial real estate loans as pressures mount in the sector. 
  • JPMorgan, Goldman Sachs, and Capital One are among those trying to shed debt exposure, sources told Bloomberg.
  • Some banks are having trouble securing buyers, and have been holding onto loans as they search for a deal.

Big banks want to some of their commercial real estate loans, but buyers are proving scarce as troubles pile up in the sector, according to report out from Bloomberg this week.

JPMorgan, Goldman Sachs, Capital One, and M&T Bank are among firms trying to whittle down their commercial real debt holdings, sources familiar told Bloomberg this week, but have been struggling to find many interested buyers.

Banks could be willing to sell property loans

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Real Estate

Mortgage debt a ‘ticking time bomb’ and a market rebound: Canadian real estate news for May 20

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This week in real estate, economists call Canada’s mortgage debt a ‘ticking time bomb’ and the market rebounds in April360hometours

Here are The Globe and Mail’s top housing and real estate stories this week, with the lowest mortgage rates available in Canada today, commentary from our mortgage expert and one home worth a look.

Mortgage debt like a ‘ticking time bomb’

Economists are issuing a dark warning, writes David Parkinson. A report from economists at Desjardins Capital Markets says Canada’s mortgage debt is “a ticking time bomb” and that the pain for mortgage holders has barely started. The bulk of mortgages taken out during the pandemic, when rates were at their bottom, will hit renewal time in 2025 and 2026, when Desjardins forecasts homebuyers will face dramatic increases in their monthly payments.

Canadian housing market rebounds in April

The national home price index claimed

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Real Estate

Billions of Dollars of Bad Real-Estate Debt Could Mean Big Bank Losses

  • Lenders, including major banks, are expanding their provisions to guard against loan losses.
  • The rapidly growing reserves reflect concerns about the health of commercial-real-estate debt.
  • The provisions put a drag on earnings, curtail lending, and could spur a cash crunch for some banks.

This earnings season, some major banks bucked tumult in the sector by raking in record revenues and surpassing Wall Street expectations.

But a blemish is building on the balance sheets of a growing number of financial institutions, in the form of cash reserves that banks and other lenders are required to collect against expected loan losses — including souring debts tied to commercial real estate. 

The reserves, stagnant money that doesn’t earn a return, place a drag on earnings, curtail lending, and show how hundreds of billions of dollars of problem real-estate assets, such as office buildings, are beginning to inflict wider financial damage.

The US’s four

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