Good thread by Twitter user Mr Kobeissis letter
Over the next 5 years, more than $2.5 trillion in commercial real estate debt will mature.
This is by far more than any 5 year period in history.
Meanwhile, rates have more than doubled and commercial real estate is only 60-70% occupied.
Refinancing these loans is going to be incredibly expensive and likely lead to the next major crisis.
The worst part?
70% of commercial real estate loans are owned by small banks.
Rapidly rising rates are teaching everyone a valuable lesson.
There's no such thing as "free" money.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Yeah