Joining CNBC’s Squawk on the Street on Monday, Goldman Sachs CEO David Solomon stressed that the economy has proved to be “incredibly resilient,” which has surprised him. However, there’s a certain sector that he sees as a risk.
After being asked about a Financial Times article reporting a surge in commercial real estate loan delinquencies in Goldman Sachs’ portfolio, Solomon told CNBC that real estate is the “single largest asset class in the world.” And as the Federal Reserve aggressively raised interest rates in an attempt to lower inflation, it has significantly affected the commercial real estate sector.
“There’s no question that the real estate market, in particular commercial real estate, has come under pressure,” Solomon said.
Solomon said that his bank has a relatively small lending portfolio compared to other lenders, but it does hold a reasonable amount of equity investments in real estate.
“Real estate affects us,”
