Kena Betancur/VIEWpress
- Commercial real estate could suffer its biggest crash since the Great Financial Crisis.
- That's bad news for banks, which could see $160 billion in additional losses.
- That's according to a recent NBER working paper, which examined the impact of the Fed's rate hikes.
The commercial real estate sector is at risk of seeing its biggest crash since 2008, and that could slam US banks with up to $160 billion in losses.
That's according to a new working paper from researchers at USC, Columbia, Stanford, and Northwestern, assessing the impact of higher-for-longer interest rates on the commercial real estate industry and the US banking system.