Value of U.S. commercial property slashed by 27%, Financial Times reports

[Eugene]

Source: Reuters

BUSINESS NEWS
SEPTEMBER 27, 2020 2:13 PM UPDATED 4 HOURS AGO

Value of U.S. commercial property slashed by 27%, Financial Times reports

By David Randall
1 MIN READ

NEW YORK (Reuters) - The economic effects of the coronavirus are battering the U.S. commercial-backed securities market, raising the question of the value of hotels, malls, and other buildings that act as collateral for mortgages, according to a report in the Financial Times on Sunday.

Wells Fargo estimates that U.S. properties that have gotten into trouble are being written down by 27% on average, according to the report.

Declining appraisal values could hammer portfolio managers that have moved into the commercial mortgage-backed securities market in search for yield at a time when the Federal Reserve has indicated that it will keep benchmark yields near zero until 2023 at the earliest.

Reporting by David Randall; Editing by Lisa Shumaker

https://www.reuters.com/article/us-usa-markets-cmbs/value-of-u-s-commercial-property-slashed-by-27-financial-times-reports-idUSKBN26I0WH

[safeinOhio]

1. A lot of empty restaurants and

Malls in my area. I hear there were already high risk loans on them.

[Wellstone ruled]

2. Just the first Write Downs.

Noticed Mortgage Bonds(high yield),or Junk Bonds for Commercial Real Estate are being peddled off in ETF's . Sounds like the Wall Street Biggee's are holding tons of spoiled paper.