10 Banks with a Toxic Balance Sheet Cocktail, if Commercial Real Estate Drops Further
10 Banks with a Toxic Balance Sheet Cocktail, if Commercial Real Estate Drops Further
We have moved our focus to banks with a large Commercial Real Estate exposure, which is clearly suffering as well. Find the 10 banks with the worst balance sheet cocktail on our LIVE-blog.
We continue our LIVE coverage of the bank crisis on → https://stenoresearch.com/banking-crisis-liveblog/
As the “discount window” is now wide-open at the Fed, we’d argue that most contagion risks surrounding hold-to-maturity bond-books are now a thing of the past, why we have moved our focus to banks with a large Commercial Real Estate exposure, which is clearly suffering from contagion effects.
The commercial Real Estate HY 5y index is now back at levels not seen since 2011/2012 and it has a tendency to lead to overall performance of commercial regional banks with a large exposure towards CRE.
We have ranked the regional banks from worst to best on the CRE / Total Assets ratio and find reasons to worry about the banks with an extraordinary large exposure to CREs in these times of funding stress. CRE may very well be the next shoe to drop, and no one / very few are talking about it.
Banks with a combination of few bonds to use in the new discount window and a large exposure to CRE may be at risk now.
Three banks have a worse cocktail than Signature bank, which has already been closed by authorities on Sunday.
We continue our LIVE coverage of the bank crisis on → https://stenoresearch.com/banking-crisis-liveblog/
Sign up for a FREE trial of 14 days to find the 10 banks with the worst balance sheet compositions around commercial real estate. We will soon release data on European banks as well.
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