Getting hit in the head by an acorn and deciding that the sky is falling, as happened in the old folk tale, is objectively silly. And yet, seeing two banks collapse within a short period of each other and then wondering what might happen to CRE lending, especially after the experience of the global financial crisis, isn’t necessarily ridiculous. But it may not be reasonable.

“When examining the real cross-exposures of the sectors and structural differences between now and 15 years ago during the Global Financial Crisis (GFC), the conclusions are less sensationalistic and more nuanced than some headlines suggest, though both banking and CRE face challenges of a rapidly rising rate environment,” Moody’s Analytics said in a recent commentary.

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Erik Sherman


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