These banks are among those most and least exposed to CRE stress - Wedbush

seekingalpha05-23

Stress in the commercial real estate market has yet to reach its peak, Wedbush Securities said Wednesday as it listed some banks that are among the most and least exposed to such risk. CRE valuations...

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CRE valuations...</p>\n\n<a href=\"https://seekingalpha.com/news/4109469-these-banks-are-among-those-most-and-least-exposed-to-cre-stress-wedbush\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These banks are among those most and least exposed to CRE stress - Wedbush</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese banks are among those most and least exposed to CRE stress - Wedbush\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-23 01:57 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4109469-these-banks-are-among-those-most-and-least-exposed-to-cre-stress-wedbush><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Stress in the commercial real estate market has yet to reach its peak, Wedbush Securities said Wednesday as it listed some banks that are among the most and least exposed to such risk.  CRE valuations...</p>\n\n<a href=\"https://seekingalpha.com/news/4109469-these-banks-are-among-those-most-and-least-exposed-to-cre-stress-wedbush\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SCHH","symbol_name":"Schwab U.S. REIT ETF","start_time":0,"source_url":"https://seekingalpha.com/news/4109469-these-banks-are-among-those-most-and-least-exposed-to-cre-stress-wedbush","article_id":"2437211022","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1462058917/image_1462058917.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2437211022","pubTimestamp":1716400665,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Stress in the commercial real estate market has yet to reach its peak, Wedbush Securities said Wednesday as it listed some banks that are among the most and least exposed to such risk.  CRE valuations","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SCHH":"Schwab U.S. REIT ETF","LU0128526141.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" ACC","BK4585":"ETF&股票定投概念","HBAN":"亨廷顿银行","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4211":"区域性银行","BK4535":"淡马锡持仓","BK4588":"碎股","BK4550":"红杉资本持仓","FDN":"First Trust Dow Jones Internet I","USRT":"iShares Core U.S. REIT ETF","BK4207":"综合性银行","KBWB":"银行ETF-PowerShares","FITB":"五三银行","KRE":"区域银行指数ETF-SPDR KBW","VNQ":"不动产信托指数ETF-Vanguard","KBWR":"Invesco KBW Regional Banking ETF","LU0029874061.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" YDIS INC","PPBI":"太平洋第一合众银行","FFWM":"First Foundation","RF":"地区金融","CFA.SI":"NikkoAM-STC Asia REIT","VLY":"硅谷国家银行"},"translate_title":"这些银行是受CRE压力影响最大和最小的银行之一——Wedbush","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KBWB":1,"VNQ":1,"VLY":1,"USRT":1,"SCHH":1,"RF":1,"PPBI":1,"KRE":1,"KBWR":1,"HBAN":1,"FITB":1,"FFWM":1,"FDN":0.9,"CFA.SI":0.9},"content_text":"Stress in the commercial real estate market has yet to reach its peak, Wedbush Securities said Wednesday as it listed some banks that are among the most and least exposed to such risk.  CRE valuations have been showing stabilization signs in recent months, Wedbush said in a Wednesday note, citing Colliers International’s Aaron Jodka, the firm’s director of research of U.S. capital markets. Jodka, in an advisor call with Wedbush, said stabilization follows two years of steep drops, with an overall blended CRE valuation decline of 25%-30% from peak levels. But he said there’s risk of additional valuation pressure and a continuation of muted transaction activity with borrowing costs still above current cap rates, a measure to determine an investment return on real estate property. The CRE market may not meaningfully recover until cap rates are at least in-line or ideally above borrowing costs, Jodka said, according to Wedbush.  The note said banks with the most CRE exposure include:  Valley National Bancorp (VLY) Pacific Premier Bancorp (PPBI) First Foundation (FFWM)  And banks with the least exposure include:   Huntington Bancshares (HBAN) Fifth Third Bancorp (FITB) Regions Financial (RF)  Stress in the CRE market appears to be in the early innings with lender-driven transaction activity starting to increase, including short sales of mostly office properties, according to Wedbush’s recount of the advisor call. But it may be another 12 months to 18 months before CRE stress fully works its way into bank financials because some loans that were set to mature in 2023 were extended to 2024, and elevated extension activity may continue.  Wedbush said Jodka expects CRE market stress may result in incremental issues for some building owners and lenders but for such issues not to result in a large-scale economic downturn. “While we tend to agree that CRE market stress shouldn't result in another financial crisis, we believe bank CRE credit metrics may degrade in coming quarters, which could pressure bank earnings,” Wedbush said.  Here are some real estate ETFs that investors can monitor:  Schwab U.S. REIT ETF (SCHH) Vanguard Real Estate Index Fund (VNQ) iShares Core U.S. REIT ETF (USRT)  And some bank ETFs to monitor:   SPDR S&P Regional Banking ETF (KRE) Invesco KBW Bank ETF (KBWB) Invesco KBW Regional Banking ETF (KBWR)","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2437211022"}