One of the largest asset managers issued a warning Monday that there could be a fast-approaching wave of failures at regional banks across the country, according to Bloomberg.
John Murray, head of Pacific Investment Management Co.’s (PIMCO) global private commercial real estate team, warned in an interview that there were a large number of troubled commercial real estate loans on the market that could put small and regional banks at risk of failure due to huge losses, according to Bloomberg.
Smaller banks hold a disproportionate share of commercial real estate loans, and the value of those assets has been rapidly declining due to both a lack of demand and high interest rates that are increasing costs. (RELATED: Biden Admin Quietly Injecting Radical Policies Into Housing Market — And It Might Bring The Whole System Down)
“The real wave of distress is just starting,” Murray…
