Commercial Real Estate Concerns Lead to Higher Borrowing Costs for Banks Bond investors are increasingly wary of banks heavily involved in commercial real estate, leading to wider spreads on these banks’ bonds as concerns grow over the impact of property debt on the financial system. Barclays Plc analysts, led by Dominique Toublan, have observed that banks with significant commercial property investments face higher costs of borrowing due to these widened spreads. This trend is notable even as there’s a general rush towards financial industry bonds for their higher yields. Toublan points out that commercial real estate concerns are a major factor affecting bond spreads, accounting for about 80% of the variation in spreads among issuers in the U.S. investment-grade debt market. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Silver’s 44 Year Cup & Handle “Now, I Believe MID TO HIGH Triple Digits Are Baked in the Cake” READ MORE ECB Resists Market Pressure for Interest Rate Cuts READ MORE How Do I Pay for Gold or Silver by Bank Wire? READ MORE For a record 446 days, this recession indicator pointed to a downturn that never arrived READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment