US Office CRE Mess Is Spread Far and Wide across Investors & Banks Globally. US Banks Eat only a Portion of the Losses by Wolf Richter • Feb 5, 2024 • 93 Comments Japanese, Canadian, and European banks started to confess. And for over a year, huge losses have hit investors, not banks.
“Effective Immediately,” Fed Shuts Down Arbitrage Opportunity with the Bank Term Funding Program (BTFP) by Wolf Richter • Jan 24, 2024 • 134 Comments This is funny, in a central-bank kind of way.
“Unrealized Losses” on Securities Held by Banks Jump by 22% to $684 Billion in Q3, Oh Lordy by Wolf Richter • Nov 30, 2023 • 104 Comments They don’t matter until they suddenly do.
Money Market Funds, Large CDs, Small CDs All Surged: Americans Figured it Out by Wolf Richter • Nov 24, 2023 • 144 Comments Banks, forced by competition from money market funds, got the memo.
“Unrealized Losses” on Securities Held by Banks, Oh Dearie, the Whole Schmear: +8%, to $558 Billion by Wolf Richter • Sep 8, 2023 • 257 Comments How do you lose 47% on 30-year Treasuries? Buy at auction in Aug 2020. Or carry them at purchase price and hide the “unrealized loss” in the footnotes.
CRE Gets Messier: Office-CMBS Delinquency Rate Spikes the Fastest Ever. Bank-Held Office Mortgages also Hit by Wolf Richter • Aug 3, 2023 • 125 Comments Unlike the defaults during the Financial Crisis, this default cycle is structural, in addition to being financial.
Banks’ Unrealized Losses on Securities Drop for Second Quarter in a Row, -25% from Peak by Wolf Richter • Jun 1, 2023 • 47 Comments From huge to somewhat less huge? Because they’re still six times the magnitude of the prior worst-record in 2018
Despite Fed Tightening and Bank Collapses, It’s Still an Astoundingly Loose Financial Situation in La-La-Land by Wolf Richter • May 13, 2023 • 207 Comments After years of money printing and pandemic stimulus, it’s hard to wring all this liquidity out of the financial system?
What Are Older Office Towers Worth? Here’s the First Sale in San Francisco’s New Era of Office CRE by Wolf Richter • May 9, 2023 • 116 Comments Union Bank made a deal to sell its tower at 75% off original listing price, setting the first new benchmark. Other towers waiting in the wings.
Fed’s Balance Sheet Plunges by $230 Billion in 6 Weeks, Biggest such Plunge in 14 Years by Wolf Richter • May 4, 2023 • 103 Comments Massive gyrations on the balance sheet after FDIC’s take-down of First Republic, sale of its assets to JP Morgan, and FDIC’s loan to JPM.
