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 Long-predicted consumer pullback finally hits restaurants like Starbucks, KFC and McDonald’s READ MORE The ‘supercore’ inflation measure shows Fed may have a real problem on its hands READ MORE Goldman’s CEO Says He’s Optimistic About 2024 as Markets Rebound READ MORE All eyes on the Federal Reserve: What to know this week READ MORE Add a Comment Cancel replyYour email address will not be published.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