Office sector collapse will cost US banks as much as $250 billion, hedge fund boss says

• Ongoing weakness in the office sector will cost US banks as much as $250 billion.
• "It's obvious that office is having enormous difficulties," hedge funder Kyle Bass said.
• The bearish call comes as work-from-home and hybrid work trends linger.

The commercial real estate market is poised to weigh down US banks that have considerable exposure to the space, according to Hayman Capital Management founder and CIO Kyle Bass.

He identified the main stress to be office space, which continues to see depressed occupancy rates amid ongoing work-from-home and hybrid work trends.