From 24/7 Wall Street:
There have been warnings for months that commercial real estate defaults would be the next plague to bank earnings. Then Dubai indicated that it would default on some of its obligations. The kingdom in the desert has vast commercial real estate holdings around the world.
New research shows that default rates were already rising sharply in the middle of the year. According to the FT, “During the third quarter the commercial default rate rose from 2.88 per cent to 3.4 per cent, the highest level since 1993.” The total balance of delinquent…
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