Thursday, December 17, 2009

Banks to Spend 2010 Coping with Commercial Mortgage Maturities

"As billions of dollars in commercial debt comes due over the next two years, with many loans originated from 2005 to 2008 underwater, the need for capital will skyrocket. Of the $3.5 trillion in commercial mortgage debt outstanding, more than $1.1 trillion is needed to service that debt. That's according to a new 2010 forecast from New York-based financial analyst Keefe, Bruyette & Woods (KBW)."

"The scarcity of cash will be most acutely felt in the banking sector, which holds some 80% of the approximately $500 billion in commercial debt that will mature through 2011."

Source

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