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A US$90b debt wave shows cracks in US property boom
Delinquency rate for commercial mortgages packaged into bonds expected to rise to 5.75% in 2017
Add BT as a preferred sourcePublished Wed, Jan 25, 2017 · 09:50 PM
New York
A US$90 BILLION wave of maturing commercial mortgages, leftover debt from the 2007 lending boom, is laying bare the weak links in the US real estate market.
It's getting harder for landlords who rely on borrowed cash to find new loans to pay off the old ones, leading to forecasts for higher delinquencies. Lenders have become choosier about which buildings they'll fund, concerned about overheated prices for properties from hotels to shopping malls, and record values for office buildings in cities such as New York.
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