Pace Of Distress Slows As Banks Try To Work Out What Lies Beneath From New York to Tokyo to Munich, banks last week reported bigger-than-expected losses related to distressed U.S. commercial property loans, raising fresh fears that the pain being felt in the country’s office market could cause systemic problems for the global financial system even as the pace of loans becoming distressed starts to slow. The situation leaves lenders, real estate investors, financial markets and policymakers trying to figure out whether the worst of loan distress is already behind it or if significant hidden nasties might yet rear their heads. 
A recent report from MSCI laid bare the extent to which lenders are facing a sharp increase in distressed loans. The volume of such loans skyrocketed by 51% to $85.8B in 2023, according to the data provider’s U.S. Distress Tracker, a $28.9B jump.The tracker defines… Read the full story here. | 
