The roiling of banking has generated shockwaves that are hitting other industries, like CRE. At first, it was a question of whether rent payments would come in from the tech startups doing business with Silicon Valley Bank. Then concern about what the Fed might do about interest rates came in. A consortium of large banks saving First Republic promised even more volatility. Credit Suisse became COD Suisse and needed a quick rescue, which happened when UBS took it over.
Enough discombobulation? Don’t you bet on it. Today’s new concern is real estate-based bonds. Whether MBS or CMBS securities could get the legs swept out from under them, taking a lot of value with them, came up in a Wall Street Journal article.