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 Central Banks Fuel Gold's Ascent to Unprecedented Levels READ MORE The Looming Disaster in Commercial Real Estate Explained READ MORE Signs of an Impending 2024 Recession, Says Citi's Top Economist READ MORE Fund Managers Shy Away from Gold Despite Record Prices READ MORE OPEC+ Negotiates Long-Term Extension of Oil Output Cuts READ MORE Add a Comment Cancel replyYour email address will not be published.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